By Doug Busch

Tesla and Amazon continue to command most of the spotlight among consumer stocks -- unsurprising seeing how they account for more than 40% of the Consumer Discretionary Select Sector SPDR ETF. Tesla, in particular, has regained momentum following Elon Musk's first insider purchase in five years.

Better-than-anticipated retail sales data released by the Census Bureau Tuesday shed positive light on the sector as a whole. As strength begins to broaden across the group, it may be time to shift some attention to overlooked mid-cap retail names. The market tends to fixate on extremes here -- small caps on one end, mega caps on the other -- but some of the most promising plays can be found in this middle ground, pun intended. Here are a few such stocks that stand out.

Victoria's Secret, a former spin-off from L Brands, is showing signs of a meaningful resurgence. The stock is up almost 50% over the past three months, well outpacing the 14% gain in the SPDR S&P Retail ETF. While VSCO still trades 44% below its 52-week high, this month saw it break above a tight consolidation range that had been in place since March.

The old adage "nothing good happens below the 200-day moving average" comes to mind, as shares last week reclaimed that key technical level for the first time since late February. This is often a sign of an early trend reversal. It follows the completion of an inverse head-and-shoulders pattern, adding further credibility to the bullish narrative. The stock looks technically attractive at current levels and it makes sense to stay long above $25.

Victoria's Secret was trading at $26.69 Tuesday.

TripAdvisor, the online travel retailer, has gained 28% so far this year, outpacing the 20% return for the Amplify Travel Tech ETF. When key sector peers move in tandem, it often signals a more sustainable path for capital appreciation. In early July, activist Starboard Value took a stake in TRIP.

From a technical standpoint, the stock is demonstrating a few encouraging signs. It's holding firm around the $18.25 level, an area that previously acted as resistance in November, January, and February. Add in a recent bull flag breakout, and the setup points to a potential move toward $25 in early 2026.

TripAdvisor was trading at $17.57 Tuesday.

Steve Madden has struggled in 2025, down 27%, but signs of a turnaround are emerging. The stock just notched its first six-week winning streak in almost two years and has gained 27% over the past three months. Notice most of those six advancing weeks closed at or near the upper half of its weekly range, often a sign of institutional accumulation.

On the weekly chart, round-number support around $20 continues to play a pivotal role. The stock formed a double bottom at that level this April, matching the lows from October 2020. Its bounce post-October bounce kicked off with a rare doji candle, a pattern known for signaling potential price reversal. With momentum percolating, the stock appears to have a path back toward the $50 area by mid-2026, an important resistance zone tested in both November 2021 and October 2024.

Steve Madden was trading at $31.18 Tuesday.

Write to Doug Busch at douglas.busch@barrons.com

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September 16, 2025 12:43 ET (16:43 GMT)

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