According to a recent analysis carried out by UBS, there are currently four companies in the retail sector that could record above-average performance in the next three months. The Swiss investment bank has developed a model that identifies companies with the greatest growth potential in the short term, selecting the stocks with the greatest probability of outperforming in the next three months.
The 4 stocks destined to grow in the next three months
Among the companies identified by UBS are:
- Under Armour;
- Birkenstocks;
- Boot Barn;
- Groupe Dynamite.
Under Armour, in 2026, stood out compared to many other sportswear manufacturers. The stock has recorded an increase of approximately 38% since the beginning of the year, demonstrating a decidedly superior relative strength compared to other operators in the sector, which instead went through a more difficult phase. The company’s main strength remains the value of the brand, which continues to enjoy strong recognition at an international level. Investing in this stock could be convenient because it is possible that the market could underestimate the potential of the new recovery path and that the next quarterly reports could reserve positive surprises.
Birkenstock, on the other hand, continues to convince analysts thanks to the growing popularity of the brand, especially in the United States, where the brand has gone from being a niche product to a true fashion phenomenon. Despite some volatility in prices, the stock has maintained a growth of more than 10% since the beginning of 2026. According to UBS, this growth does not represent a temporary phenomenon but the beginning of an even broader path of international expansion. In fact, analysts predict an average annual growth in turnover of 13% over the next five years, while earnings per share could increase at an even faster pace, around 16% per year.
Boot Barn is the most particular case. The shares have lost about 10% since the beginning of the year, despite the company posting particularly strong sales figures at the end of 2025. Precisely this apparent contradiction represents one of the elements that makes the stock interesting according to analysts, who in fact consider Boot Barn a company undervalued compared to its real growth prospects, especially if one looks at the expansion of the commercial network. The company has the potential to open approximately 400 new stores over the next five years, significantly expanding its presence in the American market. Added to this is a favorable forecast for growth in sales and earnings per share.
Finally, Groupe Dynamite represents the riskiest bet but also the one with the greatest potential. The Canadian clothing retailer is in fact the worst in terms of performance in 2026, with a decline of close to 38% since the beginning of the year. The company has also closed numerous stores in recent months, fueling investor concerns. Despite this, UBS continues to see significant growth prospects, even predicting an average increase in earnings per share of 18% over the next five years.
How UBS selected the stocks with the greatest potential
The method used by UBS analysts, led by Jay Sole, to identify the shares with the best earnings prospects is based on the combination of three factors, namely:
- the company’s ability to generate profits in relation to its overall value, which in fact indicates how much investors are willing to pay to bet on the solidity and future earnings of a particular company;
- the high price of shares compared to current profits, since according to experts, companies with high growth expectations tend to attract new capital in the short term, continuing to rise;
- the daily volatility of the share price, because stocks characterized by more pronounced fluctuations are more likely to outperform in the short term when they are supported by solid growth prospects.
The idea behind the research is that the most expensive and most volatile retail stocks may represent the best opportunities for above-average returns over the next three months.
