7 Undervalued Retail Stocks to Buy Now Retail stocks have taken a beating this year. As investors move into the second half, there are many concerning signs. Inflation reached 9.1% in June. That was the highest level in 40 years and especially concerning given Fed efforts to tamp down surging inflation with interest-rate hikes. Although the July inflation numbers were down slightly at 8.5%, there is plenty of fear still swirling. Indeed, consumer confidence levels fell 2.7 points in July as well. That sends mostly negative signals to the retail sector. So, it should be no surprise that the retail sector has performed poorly recently. One fairly representative ETF, The SPDR SP Retail ETF (NYSEARCA: XRT ), is down 23.8% in 2022. The SP 500 , on the other hand, is down a relatively modest 11.9% this year. That also means that there’s a lot of blood in the streets. There are plenty of companies in the retail sector poised to rebound very strongly. Here are a few that look particularly likely to fare well moving forward. ORLY O’Reilly Automotive $719.83 TJX TJX Companies $63.03 DG Dollar General $254.39 CHWY Chewy $48.85 JD JD.com $55.50 PRTS CarParts.com $8.94 MELI MercadoLibre $1,064.23 Undervalued Retail Stocks: O’Reilly Automotive (ORLY) Source: Jonathan Weiss | Shutterstock.com O’Reilly Automotive (NASDAQ: ORLY ) is a company and stock in the aftermarket industry.