The U.S. economy is largely healed and ready to accelerate in 2016. The message was loud and clear, when the Federal Reserve raised the interest rate for the first time in nearly a decade by a quarter percentage point to 0.25–0.50%. This marked the end of the accommodative monetary policy undertaken when the economy slipped into recession and the beginning of a slow-but-steady series of rate increases.

Market experts believe that the economy has shown considerable strength and is more balanced now to withstand headwinds such as overseas growth turmoil, weakening of foreign currencies and sluggishness in the energy sector. They anticipate the U.S. economy to expand at a rate of 2.1% in 2015 and 2.4% in 2016. The economy looks firm on its recovery path and has enough steam to carry the momentum.

Retail Sector Holds the Baton

Given the underlying economic strength, the retail space is bubbling with optimism. A gradual recovery in the housing market, along with lower gasoline prices, and an improving labor market – with the unemployment rate hovering around 5% – are playing key roles in raising buyers’ confidence. We expect this positive sentiment to translate into higher consumer spending, which accounts for over two-thirds of U.S. economic activity.

The U.S. economy created a total of 211,000 jobs in November, beating the consensus estimate of 199,000. Moreover, October’s job numbers were revised upward from last month’s reported figure of 271,000 to 298,000. Hiring was also broad-based in November, with the energy sector being the lone exception. November’s job gains have pushed up the average monthly jobs growth to 210,000 so far this year.

5 Stocks to Invest Your Money

So it is time you rejuvenate your portfolio, as you head into 2016. We have identified five Retail-Wholesale stocks based on their favorable Zacks Rank #1 (Strong Buy) or #2 (Buy) + their expected long-term earnings per share growth rate of 10% or more. A favorable rank indicates positive estimate revisions by analysts who are optimistic on the future performance of the company.