In this article, we’ll look at the 12 Best Consumer Stocks to Buy According to Wall Street.
Consumer stocks are moving back into focus in 2026. After a stretch of uneven demand and inflation-driven trade-down behavior, some asset managers are now starting to look at the sector with optimism. Fidelity, in its latest sector outlook, wrote, “In 2026, we see a more favorable environment for consumer staples.”
Fidelity also pointed to the macro backdrop, noting the sector could be “supported by fiscal stimulus and easing sector-specific pressure, potentially boosting product demand and stock valuations.” At the same time, the firm expects “consumer spending to broaden in 2026, moving away from the hyper-value focus,” benefitting select discretionary and staple consumer names.
BlackRock’s iShares team is also framing the consumer story around behavior changes rather than a simple cyclical rebound. In its 2026 thematic outlook, the firm wrote, “Blending select discretionary and staple companies, investors can potentially capture the theme of shifting consumer behavior,” suggesting that positioning may need to reflect how spending patterns evolve, not just where the economy sits in the cycle.
Staples offer relative stability, especially if rate volatility cools and input costs remain manageable. But a broadening spending pattern could also support parts of the discretionary that were pressured during peak inflation. With that backdrop in mind, we’ll look at the 12 Best Consumer Stocks to Buy According to Wall Street.
Our Methodology
To identify the 12 Best Consumer Stocks to Buy According to Wall Street, we used the Finviz screener to generate a list of consumer stocks with a market capitalization of at least $2 billion. We then used CNN analyst ratings compilation to determine the median upside for each stock as of February 13, 2026, and ranked the stocks according to their upside potential. We have also included the number of hedge funds that hold the stock as of Q3 2025.
Why are we interested in the stocks that hedge funds pile into? The reason is simple: our research has shown that we can outperform the market by imitating the top stock picks of the best hedge funds. Our quarterly newsletter’s strategy selects 14 small-cap and large-cap stocks every quarter and has returned 427.7% since May 2014, beating its benchmark by 264 percentage points (see more details here).
12. Coty Inc. (NYSE:COTY)
Potential upside: 18.58%
Number of Hedge Fund Holders: 30
On February 9, 2026, RBC Capital lowered its price target on Coty Inc. (NYSE:COTY) to $8 from $10 and maintained an Outperform rating. The firm said the company delivered an organic sales beat for the quarter and described the current period as a transition as Markus Strobel steps in to restore growth.
That same day, Morgan Stanley reduced its price target to $3.50 from $4.25 and kept an Equal Weight rating. The firm said second-quarter results came in slightly below target, but the more significant concern was well-below-consensus third-quarter EBITDA guidance and the withdrawal of fiscal 2026 guidance, which it called “the key negative.” The analyst cited limited visibility and said execution under the new interim CEO will be critical. Also on February 9, Citi lowered its price target to $3 from $3.50 and maintained a Neutral rating, viewing the earnings report as mixed and pointing to uncertainty following the pulled fiscal 2026 outlook.
Coty reported second-quarter revenue of $1.68 billion on February 6, 2026, above the $1.66 billion consensus estimate. Markus Strobel, Executive Chairman and Interim CEO, said he joined the company at a pivotal moment and pointed to its brands, fragrance innovation capabilities, vertically integrated model, and entrepreneurial organization. He acknowledged that financial performance over the past year and a half has been disappointing and that the current share price reflects that reality, noting that while Coty has strong assets, results have not met expectations.
Coty Inc. (NYSE:COTY) manufactures, markets, and sells branded beauty products globally through its Prestige and Consumer Beauty segments, offering fragrance, cosmetics, and skin and body care products.
11. Capri Holdings Limited (NYSE:CPRI)
Potential upside: 20.18%
Number of Hedge Fund Holders: 38
On February 4, 2026, TD Cowen analyst Oliver Chen lowered his price target on Capri Holdings Limited (NYSE:CPRI) to $26 from $32 and maintained a Buy rating. The firm said third-quarter results came in better than expected and noted improving product, but added that elevated expectations are limiting stock performance.
That same day, Goldman Sachs reduced its price target to $24 from $27 and kept a Neutral rating. The firm said Q3 showed sequential improvement in Michael Kors full-price sales and stronger-than-expected results at Jimmy Choo, though outlet pressure and a wholesale reset continue to weigh on near-term performance. UBS analyst Jay Sole also lowered his price target on February 4, cutting it to $22 from $25 and maintaining a Neutral rating. UBS said the company’s self-help initiatives aimed at restoring brand momentum appear broadly on track, but the recovery now looks more back-half weighted with increased risk that the turnaround could take longer than previously anticipated.
Capri Holdings Limited (NYSE:CPRI) reported third-quarter revenue of $1.025 billion on February 3, 2026, above the $1 billion consensus estimate. CEO John Idol said results exceeded expectations and pointed to ongoing strategic initiatives at Michael Kors and Jimmy Choo to support long-term growth, targeting a return to growth in fiscal 2027. He also noted the completed sale of Versace, with proceeds used to significantly reduce debt, leaving the company with $80 million of net debt at quarter end.
Capri Holdings Limited (NYSE:CPRI) engages in the design, marketing, distribution, and retail of branded women’s and men’s apparel, footwear, and accessories in the United States, Canada, Latin America, Europe, the Middle East, Africa, Asia, and Oceania.
