This is a good time to be shopping for retailing stocks. Worries over sluggish consumer spending trends have pushed valuations down for most of the sector even though cyclical downturns are a normal, and temporary, part of the economic cycle. It makes sense, then, to consider purchasing the best of these businesses when they are trading for a discount.

Some stocks are down for better reasons than others, though, so you should focus your investing dollars on retailers that boast more attractive long-term outlooks. At the same time, you should try to avoid those companies that are losing market share or have weak profit outlooks. Let's look at two retailers that might be worth buying right now and one that should be avoided.

Costco Wholesale (NASDAQ: COST) and Home Depot (NYSE: HD) stocks are definitely worth a closer look.

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Source Fool.com