Wall Street is watching the evolution of the retail landscape stateside as e-commerce continues to disrupt traditional retail models. In recent years, many traditional brick-and-mortar retailers have struggled to adapt, leading to store closures, layoffs and declining sales. However, some retailers have successfully become part of the new retail landscape. These players prioritize seamless omnichannel experiences, strategic diversification and exceptional customer service. The companies demonstrate an understanding of the modern consumer and are actively shaping the future of retail. For investors, identifying such robust retail stocks presents a significant opportunity.

In this article, we spotlight three retail stocks that are adapting and succeeding in 2024. These retailers stand as robust examples of resilience, innovation and strategic foresight, making them worthy additions to long-term portfolios.

AutoZone (AZO)

First up on our list of retail stocks is AutoZone (NYSE:AZO). It is a leading retailer and distributor of automotive aftermarket parts and accessories in the U.S., Mexico and Brazil. Beyond replacement parts, AutoZone also caters to the do-it-yourself (DIY) and professional mechanic markets.

The automotive parts company reported positive financial results for the third quarter of 2024 in April. Net sales increased 3.5% year-over-year (YOY) to $4.2 billion. Net income for the quarter was $651.7 million compared to $647.7 million in the same period last year, while diluted earnings per share (EPS) increased 7.5% to $36.69.

Wall Street noted that AutoZone expanded its retail footprint by 45 new stores in the quarter, reaching a total of 7,236 locations. Beyond physical expansion, management is focused on growing its domestic commercial business, which it believes is the key driver of future growth and profitability. In addition, AutoZone is implementing initiatives to improve customer service and expand parts availability through its hub network.

As a result, AZO stock has gained more than 7% year-to-date (YTD). Meanwhile, the shares are trading at 16.8 times forward earnings and 2.8 times sales. Analysts have a 12-month price target of $3,250 for AZO, signaling more than a 17% upside.

Target (TGT)

General merchandise retailer Target (NYSE:TGT) is the next name among our retail stocks for today. The company offers a diverse range of products, including apparel, home goods, electronics, groceries, dairy, toys, beauty and more. In general, Target differentiates itself through its focus on curated product lines, exclusive brand partnerships and a robust digital presence.

For the first quarter of 2024, Target reported revenue of $25.53 billion, marking a 3.1% decline compared to the year-ago period due to softer sales trends. Net earnings declined 0.8% YOY to $942 million. Diluted EPS also dropped 1% YOY to come in at $2.03.

Meanwhile, in March, management announced a multi-faceted strategy to enhance the customer experience and fuel long-term growth. The plan centers on revamping its successful Target Circle loyalty program with a tiered membership structure and personalized features. Additionally, the company will focus on expanding its successful $30 billion-plus owned brand portfolio with new, on-trend items. Finally, Target plans to build hundreds of new stores and invest in existing locations, aiming to reach new customers.

So far in 2024, TGT stock has appreciated over 5%. The stock is currently trading at an attractive 16.1 times forward earnings and 0.65 times sales. Shares also have a robust dividend yield of 3.0%. And Wall Street remains optimistic about the prospects of TGT stock, with a 12-month median price forecast of $180. Such an increase in the price of Target shares would suggest a potential upside of 20%.

SPDR S&P Retail ETF (XRT)

Rounding out our discussion on retail stocks is the SPDR S&P Retail ETF (NYSEARCA:XRT). This exchange-traded fund (ETF) tracks the overall performance of the U.S. retail sector. These retailers come from a diverse set of sub-industries, including apparel, electronics, department stores and specialty stores.

Since its inception in June 2006, net assets have grown close to $356 million. XRT currently has 79 holdings, while the top 10 names comprise about a fifth of the fund. The leading sectors in the fund include apparel retail (22.8%), automotive retail (20.5%), other specialty retail (20.3%) and broadline retail (13%). Warby Parker (NYSE:WRBY), Sprouts Farmers Market (NASDAQ:SFM), GameStop (NYSE:GME), Carvana (NYSE:CVNA) and Boot Barn Holdings (NYSE:BOOT) are among the leading stocks.

Since the beginning of the year, XRT has advanced close to 6%. Yet, the current valuation appears favorable, with trailing price-to-earnings (P/E) and price-to-book (P/B) ratios of 14.56 and 2.67, respectively. Given the importance of the retail sector for our economy, we’re bullish on the XRT as the fund hovers around multi-year highs. Interested investors should also note the current dividend yield of 1.26% and annual expense ratio of 0.35%.

On the date of publication, Tezcan Gecgil did not hold (either directly or indirectly) any positions in the securities mentioned in this article. The opinions expressed in this article are those of the writer, subject to the InvestorPlace.com Publishing Guidelines.