Nearly two months into 2026, some of the early contenders among top-performing stocks have already zipped past the broader market. This is not especially difficult to do, seeing that the S&P 500 is only up less than 1% year-to-date (YTD), but big rallies from leaders like Valaris PLC (NYSE: VAL) (up 80% since the start of the year) would impress in even more of a boom period for the broader market.
Of course, investors are more concerned with future performance than past returns, and three companies in the retail space stand out for their potential for growth going forward. While these companies have either performed roughly on par with the S&P 500 or have underperformed so far this year, they have a confluence of factors including analyst support, forecasts for price and/or earnings growth, and more that all suggest they may be worth watching as 2026 continues.
A Key Fintech and E-Commerce Player in a High-Potential Region
A dominant e-commerce player in Latin America, MercadoLibre Inc. (NASDAQ: MELI) is also a go-to for fintech needs, including payment processing and point-of-sale. The company has expanded rapidly, growing its buyer base by about 7.8 million in the third quarter of 2025 and boosting revenue by an impressive 39% year-over-year (YOY).
Investors reviewing the company's Q4 earnings on Feb. 24 should look for signs of margin compression easing, as this hurdle persisted into the second half of 2025 while MercadoLibre invested in free shipping, product development, logistics, and other areas to fuel long-term performance.
With tailwinds in place to continue driving growth in Latin American equities, particularly thanks to commodity strength and the dollar's performance, MELI shares could be poised to lead.
The Latin American fintech space is still underpenetrated, and MercadoLibre enjoys a significant structural advantage thanks to its wide footprint throughout the region.
This is one of the reasons why company management expects the e-commerce business to double in the coming years.
Analysts agree, seeing near-term earnings growth of nearly 44% for the company and upside potential of nearly 50% as MELI shares have stumbled by more than 5% year-to-date. 15 of 18 analysts rate MELI stock a Buy, indicating strong bullish sentiment across Wall Street.
A Swiss Sportswear Firm Keeping Nike On the Run
Swiss firm On Holding AG (NYSE: ONON) is known for its running shoes and other performance apparel, driven by distinctive technology and sole architecture. In that niche world, Nike Inc. (NYSE: NKE) is king, but On has steadily built a loyal following that has helped it boost net sales by 25% YOY in the latest quarter.
On is not just growing as a shoe company but is also taking market share from some of the bigger rivals in the space, thanks to its impressive apparel performance—net apparel sales climbed by 87% YOY last quarter. The biggest gains have come in the Asia-Pacific region, with overall net sales for the area surging by more than 94% YOY in the latest reported period.
Despite the risk of currency headwinds, On's gross profit margin is sitting high at 65.7%, a testament to the company's discipline with cost control and its effective prioritization of high-return markets.
With this in mind, On management has recently raised its full-year 2025 guidance across the board, expecting net sales growth of 34% YOY on a constant currency basis.
Analysts also see continued growth for the company, predicting earnings gains of more than 30% and share price growth of 26% after ONON has risen about 1% YTD. 20 out of 24 analysts call ONON stock a Buy.
Despite Recent Difficulties, Chewy Could Be on a Major Growth Trajectory
Pet product e-commerce leader Chewy Inc. (NYSE: CHWY) is down more than 28% in the last year, hovering around a 52-week low. Yet, autoship sales continue to climb (by 13.6% YOY in the last quarter), a sign that recurring revenue may be on the rise. At the same time, Chewy has boosted its profitability, gross margin, and cash flow, the latter of which climbed to about $176 million in Q3 2025.
Though near-term demand could remain suppressed as customers grapple with inflation, the company's expansion into vet care is opening new revenue streams.
Wall Street sees this as one of the factors likely to fuel 87.5% earnings growth in the coming year, with shares of CHWY predicted to rise by as much as 87%. The company's Moderate Buy status across analyst reviews reflects 17 Buy ratings and 4 Holds.
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The article "Can These 3 Names Be 2026’s Biggest Retail Comebacks?" first appeared on MarketBeat.
