The retail sector is making solid efforts to bounce back from its earlier lows. Sales have increased over the past few months as price pressures eased following the Federal Reserve's back-to-back rate cuts. Robust consumer spending is helping overall retail sales.

Also, the holiday season is approaching, and a shopping extravaganza is expected to boost overall retail sales. Given this positive outlook, investing in retail stocks would be a prudent choice.

We have selected four such stocks: Amazon.com, Inc. AMZN, Tapestry, Inc. TPR, Casey's General Stores, Inc. CASY and Abercrombie & Fitch ANF. These stocks have seen positive earnings estimate revisions in the last 60 days. These stocks have a Zacks Rank #1 (Strong Buy) or 2 (Buy) and assure good returns. You can see the complete list of today's Zacks #1 Rank stocks here.

Retailers who look forward to the all-important holiday sales to maximize their revenues can expect a robust Black Friday to Cyber Monday. Retail sales are projected to hit $75 billion for the first time during the Black Friday to Cyber Monday shopping window, up 5% year over year and ahead of the total holiday period sales growth of 3%, according to Bain.

Of the total holiday period sales, 8% will be generated between Black Friday and Cyber Monday, the largest in the post-pandemic era.

The popularity of e-commerce has made Cyber Monday an important shopping day. Cyber Monday this year is also expected to be great, with online sales growing in October. The Commerce Department, in its sales report, said that online sales grew 0.3% last month.

The retail sector suffered for most of 2022 and 2023 as consumers spent cautiously amid rising price pressures and higher borrowing rates. However, price pressures have eased substantially, with inflation declining sharply over the past few months.

Retail sales grew 0.4% sequentially in October, surpassing analysts' expectations of a rise of 0.3%. The Federal Reserve has cut interest rates by 75 basis points since September after inflation declined substantially in the second and third quarters.

Lower borrowing costs have been helping consumers gain more purchasing power. Also, consumer spending has been robust. Consumer spending rose 0.5% month over month in September and 3.7% annually. A jump in retail sales and consumer spending bodes well for the sector ahead of the holiday season.

Amazon.com, Inc.is one of the largest e-commerce providers, with sprawling operations in North America, now spreading across the globe. AMZN's online retail business revolves around the Prime program well-supported by the company's massive distribution network. Further, the Whole Foods Market acquisition helped Amazon establish a footprint in the physical grocery supermarket space. AMZN also enjoys a dominant position in the cloud-computing market, particularly in the Infrastructure as a Service space, thanks to Amazon Web Services.