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Retailers that specialize in luxury goods and those that are resilient against inflation will do well in 2022, according to Cowen analysts.

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The top retail stocks for 2022 are companies that specialize in luxury goods, and those that are resilient against inflation, according to Cowen analysts.

Investors should look for defensive stocks that perform better during broad market recessions and offer solid returns amid inflation, which will be “significant and semi-permanent,” heading into next year, Cowen analysts wrote in a report published Tuesday.