Retailers are adapting their business models as technology changes how people shop. Still, demand can be volatile as the industry is exposed to the ups and downs of consumer spending. This has stirred some uncertainty lately as retail stocks have tumbled by 11.8% over the past six months. This drop was worse than the S&P 500’s 2% fall.

Only some companies are subject to these dynamics, however, and a handful of high-quality businesses can deliver earnings growth in any environment. With that said, here are two consumer stocks we think can generate sustainable market-beating returns and one best left ignored.

One Consumer Retail Stock to Sell:

Torrid (CURV)

Market Cap: $662.5 million

Promoting a message of body positivity and inclusiveness, Torrid Holdings (NYSE:CURV) is a plus-size women’s apparel and accessories retailer.

Why Do We Steer Clear of CURV?

1. Disappointing same-store sales over the past two years show customers aren’t responding well to its product selection and store experience

2. Revenue base of $1.10 billion puts it at a disadvantage compared to larger competitors exhibiting economies of scale

3. Falling earnings per share over the last five years has some investors worried as stock prices ultimately follow EPS over the long term

At $6.35 per share, Torrid trades at 27.6x forward P/E. Dive into our free research report to see why there are better opportunities than CURV .

Two Consumer Retail Stocks to Watch:

Dick's (DKS)

Market Cap: $14.96 billion

Started as a hunting supply store, Dick’s Sporting Goods (NYSE:DKS) is a retailer that sells merchandise for traditional sports as well as for fitness and outdoor activities.

Why Are We Fans of DKS?

1. Same-store sales growth averaged 3.9% over the past two years, showing it’s bringing new and repeat shoppers into its stores

2. Share repurchases have increased shareholder returns as its annual earnings per share growth of 33.2% exceeded its revenue gains over the last five years

3. Market-beating returns on capital illustrate that management has a knack for investing in profitable ventures

Dick's is trading at $188 per share, or 12.7x forward P/E. Is now a good time to buy? Find out in our full research report, it’s free .

O'Reilly (ORLY)

Market Cap: $80.4 billion

Serving both the DIY customer and professional mechanic, O’Reilly Automotive (NASDAQ:ORLY) is an auto parts and accessories retailer that sells everything from fuel pumps to car air fresheners to mufflers.

Why Should You Buy ORLY?

1. Brick-and-mortar locations are witnessing elevated demand as their same-store sales growth averaged 4.5% over the past two years

2. Unique assortment of products and pricing power are reflected in its best-in-class gross margin of 51.3%

3. ORLY is a free cash flow machine with the flexibility to invest in growth initiatives or return capital to shareholders