Are JB Hi-Fi or Harvey Norman shares a better buy right now?

Two of the most recognisable names in the consumer discretionary sector are JB Hi-Fi and Harvey Norman. 

This sector relies heavily on economic conditions and consumer sentiment. 

Some of these factors have led to the sector staying relatively flat over the last 12 months.

The S&P/ASX 200 Consumer Discretionary (ASX: XDJ) is up just 1.6% in that span. 

But is there any opportunity in the new year for two of Australia's biggest electronics and white goods companies?

Here's what experts are tipping for JB Hi-Fi and Harvey Norman shares. 

JB Hi-Fi Ltd (ASX: JBH)

The group's products focus on consumer electronics, electrical goods, and white goods through its JB Hi-Fi, JB Hi-Fi Home, and The Good Guys stores.

JB Hi-Fi shares have fallen by roughly 18% since late last year, and are overall down 3.3% in the last 6 months. 

Most of this decline came amidst changing inflation and cash rate news last October, which pushed consumer sentiment lower. 

This was despite the company reporting quarterly sales growth across all its businesses.

So are they worth a buy?

It's important to first point out JB Hi-Fi offers a solid dividend yield of just over 3%. 

As for the share price, RBC Capital Markets placed a $101 price target on JB Hi-Fi shares late last year. 

Meanwhile, TradingView has an average one year price target of $102.89. 

These targets indicate an upside between 8-11% from its current share price. 

Harvey Norman Holdings Ltd (ASX: HVN)

It's been a very different story for Harvey Norman shares over the last 12 months. 

Its share price has risen by more than 46% in that span, making it among the best retail shares to have owned in 2025.

This largely came on the back of impressive FY25 results. 

At the time of writing, Harvey Norman shares are trading at $6.78 each. 

So is there more growth to come in 2026? Or should investors take profits?

Much like its competitor JB Hi-Fi, it also offers a strong yield. 

It's forecast to pay fully franked dividend yields of 4.5% in FY 2026.

Secondly, brokers still see share price growth for Harvey Norman shares in 2026. 

Bell Potter has a buy rating and $8.30 price target on its shares. 

From current prices, that indicates an upside of more than 22%.