Peter Lynch's Top Consumer Discretionary Stocks from Validea - December 18, 2025
Top Rated Consumer Discretionary Stocks: JD.COM INC, Dillard's Inc, and Ross Stores Inc are highlighted as top-rated stocks based on Peter Lynch's P/E/Growth Investor model, with JD.COM receiving a 98% rating, while Dillard's and Ross both received 91%.
Company Descriptions: JD.COM operates in e-commerce with various segments including retail and logistics; Dillard's is a retailer of fashion and home goods with 272 stores; Ross Stores operates off-price retail apparel and home fashion stores.
Atour Lifestyle Holdings and Toyota Motor Corp: Atour Lifestyle Holdings, a mid-cap growth stock in the hotel industry, received a 74% rating, while Toyota Motor Corp, a large-cap value stock in the automotive sector, also received a 74% rating based on their fundamentals and valuations.
About Peter Lynch and Validea: Peter Lynch is renowned for his successful investment strategies, achieving significant returns with the Magellan Fund, while Validea provides investment research based on the strategies of legendary investors like Lynch.
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Dillard's Stock Surges Over 1200%, Significant Dividend Growth
- Dillard's Stock Performance: Between December 2020 and December 2025, Dillard's shares surged over 1200%, outperforming the S&P 500, Nvidia, and Bitcoin, showcasing its strong post-pandemic recovery and market competitiveness.
- Dividend Policy Advantage: With a 15-year track record of dividend growth averaging 12.9% annually over the past five years, combined with a forward yield of 4.8%, Dillard's is expected to continue delivering solid capital returns in the future.
- Nexstar's Profitability: As the largest owner of broadcast television stations in the U.S., Nexstar has successfully enhanced profitability through aggressive cost-cutting, currently boasting a forward dividend yield of 3.5% and a payout ratio of only 45%, providing ample cash flow for future acquisitions and debt repayment.
- Target's Turnaround Potential: Target's stock has rallied over the past year, with a forward yield of 4.1% and a payout ratio nearing 60%, while its 57 years of consecutive dividend growth, coupled with pressure from activist hedge funds, may further enhance management's turnaround efforts, positively impacting share price and dividend growth prospects.

Dillard's Stock Surges Over 1200% in Five Years, Driven by Dividends and Buybacks
- Outstanding Stock Performance: Dillard's stock has surged over 1200% in the past five years, significantly outperforming the S&P 500, Nvidia, and Bitcoin, reflecting strong market performance and investor confidence.
- Sustained Dividend Growth: With a 15-year track record of dividend growth averaging 12.9% annually over the last five years, Dillard's is expected to maintain a forward yield of 4.8%, enhancing investor return expectations.
- Nexstar Acquisition Potential: Nexstar Broadcast Group has successfully improved profitability through aggressive cost-cutting, currently boasting a forward dividend yield of 3.5%, with potential earnings growth from the pending Tegna acquisition.
- Target Shareholder Activism: Target, a Dividend King with 57 years of consecutive dividend growth and a forward yield of 4.1%, may see accelerated transformation efforts due to pressure from activist hedge fund Toms Capital, potentially boosting share price and dividend growth.









