JPMorgan analyst: If you're not online and if you're not Amazon, you need to offer value

Boss: Consumer is being drawn to convience and value

The retail sector has undergone one of the biggest transformations on the Dow's road from 10,000 to 20,000 points.

And with the Dow soon closing in on the landmark 20,000, many investors are looking ahead to what are the best retail stocks to buy going toward 30,000.

According to JPMorgan retail analyst Matt Boss, convenience and value are the two measures to best determine which stocks to purchase.

"To me the consumer is being drawn to convenience and value. So the convenience is online. The convenience is Amazon," Boss told CNBC's "Power Lunch" on Tuesday. "If you're not online and if you're not Amazon, you need to offer value. You need differentiation, you need private label, something that is only you."

However, with Donald Trump's presidency starting soon, companies and investors worry about potential tax changes that could alter the retail sector.

To forecast what may be ahead or changing within the next six months, Boss says to examine the individual components per sector and company.

"What you need to know is what's the percent of foreign sourcing for each one of these companies," Boss said. "We also have to consider what percent of private label [do] the department stores have today and what percent of their business is done in the U.S."

Boss believes the companies in the best position are those with pricing power and retailers who resell a variety of brands.

"One of your best positions would be if you have pricing power, and if you're passing through other people's goods," Boss said. "So with Foot Locker, for example, reselling Nike, reselling Under Armour, the off pricers, like TJ Maxx reselling other people's brands, they're at the best position. But, they still have to deal with the potential for rising prices."