(This is “The Best Stocks in the Market,” brought to you by Josh Brown and Sean Russo of Ritholtz Wealth Management.) Josh — Happy Thanksgiving, how about you, cowboys? If I had a nickel for every time I heard about the trials and tribulations of American consumers, I would be richer than Ellison. “Consumers are struggling, consumers are exhausted, consumers are on their last legs, consumers are running on fumes, this consumer and that consumer.” Lamenting the state of the consumer is almost daily in the media these days, and it stems from a very basic misconception that I can unpack right now. “There is no such thing as a “consumer”. Perhaps there was a typical, homogenized assumption of “consumer” that made sense in the 1970s when everyone worked in factories, but that world no longer exists. MacKenzie Scott (formerly MacKenzie Bezos) is an American householder. In the past five years, she has personally donated more than $19 billion to more than 2,000 charities, making her perhaps one of the greatest human beings who ever lived. She is a mother of four living in Washington state, and also a consumer. Are we talking about her and the guy who scraped the petting zoo after a kid’s birthday party? If so, why? Are the spending decisions that Mr. Scott and his drivers are making in any way related to the decisions being made by a household headed by a teacher, an accountant, a street magician, a nurse, or a cardboard box factory manager? As a less extreme example than Scott and Shovelman, will an AI consultant who works for Accenture and lives in Boston’s Beacon Hill neighborhood experience the economy of 2025 the same way as the owner of a regional chain auto accident shop in Phoenix, Arizona? Same income, but perhaps radically different decision-making inputs and wealth influencing stressors. AI Guy’s actions will be heavily influenced by local real estate prices and the latest price of his stock options. Collision Guy plans to reduce local labor costs to staff the garage, as well as the price and availability of auto parts and tools. Let’s say they both earn $500,000 a year. Do you have the same spending pattern? Not a chance. This country has different demographics of consumers whose actions are driven by very different priorities and sources of stress and economic stimulus. Last year, it became clear that households at the top of the income and wealth distribution were actually benefiting from supposedly restrictive high interest rates, thanks to aggressive cash injections into savings accounts and money market funds. In fact, while higher interest rates stimulated spending among the top 20% of households, they had a negative impact on households with credit card balances and the need to borrow. So, are rising interest rates good or bad for “consumers”? Horse hockey. There are also regional differences. Imagine a situation where plummeting natural gas prices, in contrast to employment trends and wages, hurt certain local economies in Oklahoma and Texas, while at the same time benefiting low-income families paying to heat their homes in Chicago and Little Rock. Is cheap natural gas good or bad for “consumers”? Obviously, the whole conversation turns into ridiculous nonsense. That’s neither good nor bad for this mythical consumer that everyone keeps talking about. It simply is. Target (TGT) loves to beat The Street in its quarterly reports, regaling us with stories of execution, marketing prowess, and efficiency. And when we (inevitably) take a hit next quarter, we’ll hear stories about how consumers are struggling with “headwinds” and “uncertainty.” So basically, “On the surface we’re a great retailer, but on the surface it’s someone else’s fault.” I sometimes wonder if TJX Companies (TJX) was founded on Earth to embarrass whoever their current target CEO is because they run year after year, year after year, regardless of what’s going on. They don’t waste their time playing Dickensian elegies for poor, well-dressed American shoppers. They just hit, raise and hit again. Sean shares more about TJX and its amazing performance since he first wrote this article in August. TJX operates 5,000 stores, many of which are located near Target stores. We’ll also talk about Ulta Beauty (ULTA). This is one of the best stock names on the market and a rebirth story. Spotlight: Consumer vs. Retail Stocks Sean — We’ve been spending a lot of time obsessing over healthcare lately — but there’s another corner of the market that deserves attention. Consumer discretionary has lagged in 2025, increasing just 3.7% since the beginning of the year. This is a 12.7 point difference compared to the S&P 500. To put it in perspective, even the U.S. Aggregate Bond Index is up 7%. Buyers are starting to appear in these stocks as the holiday season approaches. 16% of the S&P Retail ETF (XRT) hit a 52-week high and the highest level since February. TJX is in the top 10 stocks of this ETF and we wrote it on August 7th. Let’s compare its performance since then to the S&P 500. TJX is hitting new all-time highs during a difficult time for consumers. Consumers are looking for value as $22 salads become the norm. TJX’s pricing philosophy is intentionally decentralized and market-responsive to deliver as much value as possible. Rather than imposing margin targets or dictating ticket prices from headquarters, the company allows merchants to determine the appropriate retail level. TJX also refuses to lead the market in pricing. Observe competitor behavior and adjust selectively only when cost structures and competitive dynamics warrant it. The company continually validates this approach through weekly SKU-level performance data and ongoing consumer research, both of which show very high value perception scores. TJX’s value strategy will deliver comparable 5% revenue growth in Q3 2026, and the company is positioned to continue gaining market share. Earnings increased 10% to $2.97 in fiscal 2023, nearly 30% to $3.86 in fiscal 2024, and another 10% to $4.26 in fiscal 2025. Looking ahead, TJX raised its full-year 2026 earnings outlook during its third quarter conference call on Nov. 19, and expects diluted EPS to be between $4.63 and $4.66, representing approximately 9% growth from 2025. For the fourth quarter, management expects diluted EPS of $1.33 to $1.36, an increase of 8% to 11% compared to last year’s $1.23. This strengthened the company’s confidence in its momentum heading into the end of the year. Ulta is another company that is aggressively gaining market share. Here is a graph of ULTA over the past five years. ULTA has been focused on re-engaging with its customer base post-pandemic. Ulta Beauty’s loyalty program continues to be a key driver of growth. Membership reached a record number of 45.8 million in the second quarter of 2026, an increase of 4% year-on-year, and 44.6 million in the fourth quarter of 2025, an increase of 3% year-on-year. Loyalty members currently account for approximately 95% of total sales. Ulta Beauty has focused on high-impact partnerships and creative marketing to deepen engagement with the brand. The company served as the official beauty retail partner for Beyoncé’s Cowboy Carter Tour, offering exclusive products and experiences at both Coachella and Lollapalooza. The Super Bowl campaign also generated record social engagement. In-store momentum continues, with over 30,000 events held in the second quarter of 2026 and over 20,000 events held in the first quarter. These brand initiatives are directly linked to improved business results. In the second quarter of 2026, we achieved a similar revenue growth of 6.7% with positive margins across all channels and key categories. Ulta gained market share during the quarter and saw significant increases in in-store conversion and guest satisfaction. The company posted 2.9% like-for-like revenue growth in Q1 FY26 due to accelerating member growth, improved brand engagement, and stronger conversions both in-store and on the app. Risk Management Josh — OK, here’s TJX. Yes, the stock price is significantly higher than when it first went public. No, it doesn’t matter. If traders enter here, they should use $140 as a stop. A fall below that level will invalidate the recent breakout and await the next setup. Long-term investors can use $134 based on the August gap low as a risk management level. A break below can lead to a long chop, but this can be avoided. Let’s do Ulta… To repeat something I’ve heard a lot, I’m zooming out to a 5-year weekly closing price chart. I don’t believe in triple tops. The double top you always see. In my opinion, triples are almost always broken to the upside. It’s not a superstition. It’s a fact that buyers are rarely so wrong three times in a row. Eventually, they convince the seller that there is no point in fighting, and the price is broken through. In some cases, you can exhaust all remaining sellers in just three (or four) attempts. I think Ulta is running out of its sales supply as we speak. The $570 level is a green light to add more as the breakout is real and present now. It might take a while, but I wouldn’t bet on it. Looking at the 1-year chart below, it’s a little opaque. Ulta hit a 52-week high of $570 in October, confirming relative strength in the low $60s, but buyers turned away from the all-time high, resulting in a (temporary) triple top. As you can see above, support around the $500 level has held twice since then, showing us exactly where you want to set your stops (on a closing price basis on a weekly basis, no intraday whips). Buy now and reload even higher during your next $570 breakaway challenge. Disclosure: (none) All opinions expressed by CNBC Pro contributors are solely their own and do not reflect the opinions of CNBC, NBC UNIVERSAL, its parent or affiliate companies, and may have been previously disseminated on television, radio, the Internet, or another medium. The above is subject to our Terms of Use and Privacy Policy. This content is provided for informational purposes only and does not constitute financial, investment, tax, or legal advice or a recommendation to purchase any securities or other financial assets. The content is general in nature and does not reflect your unique personal circumstances. The above may not be appropriate for your particular situation. Before making any financial decisions, you should strongly consider seeking the advice of your own financial or investment advisor. Investments involve risk. The analysis examples included in this article are examples only. The views and opinions expressed are those of the contributors and do not necessarily reflect the official policy or position of Ritholtz Wealth Management, LLC. Josh Brown is the Chief Executive Officer of Riholtz Wealth Management and may maintain securities positions in the securities discussed. 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