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.
10. Harley-Davidson, Inc. (NYSE:HOG)
Potential upside: 21.83%
Number of Hedge Fund Holders: 30
On February 12, 2026, DA Davidson lowered its price target on Harley-Davidson, Inc. (NYSE:HOG) to $25 from $30 and maintained a Buy rating. The firm said fourth-quarter results and fiscal 2026 guidance came in well below expectations, but noted management’s clear commitment to making 2026 a turnaround year, including what it described as “laying down the hammer” on inventory cleanup.
On February 11, 2026, BMO Capital analyst Tristan Thomas-Martin also reduced his price target on Harley-Davidson, Inc. (NYSE:HOG) to $24 from $30 and kept an Outperform rating. He said the initial 2026 guidance disappointed due to pressure from “reset” actions such as channel right-sizing, a slower HDFS ramp, and efforts to strengthen the dealer network. BMO added that reversing prior strategic moves appears reasonable and that shares could find support until more detailed updates are provided.
Harley-Davidson, Inc. (NYSE:HOG) reported fourth-quarter revenue of $496 million on February 10, 2026, above the $479.83 million consensus estimate. CEO Artie Starrs said the company is taking deliberate steps to stabilize operations, rebuild dealer confidence, and align wholesale shipments with retail demand. He acknowledged near-term results reflect these changes but expressed confidence in the reset and the company’s long-term earnings and cash-flow potential.
Harley-Davidson, Inc. (NYSE:HOG) manufactures and sells motorcycles globally through its Motor Company, LiveWire, and Financial Services segments.
9. Levi Strauss & Co. (NYSE:LEVI)
Potential upside: 24.08%
Number of Hedge Fund Holders: 37
On February 4, 2026, Jefferies analyst Blake Anderson initiated coverage of Levi Strauss & Co. (NYSE:LEVI) with a Buy rating and a $25 price target. The firm said it expects the company to continue gaining market share and sees a long-term runway for value creation driven by direct-to-consumer, lifestyle, and premium initiatives, along with a potential post-tariff growth reacceleration in 2027.
Levi Strauss & Co. (NYSE:LEVI) reported fourth-quarter revenue of $1.8 billion on January 29, 2026, above the $1.71 billion consensus estimate. CEO Michelle Gass said the company has taken steps to become a DTC-first, head-to-toe denim lifestyle brand, narrowing focus and improving operational execution to increase agility. She said these efforts elevated the Levi’s brand and supported faster growth and improved profitability in the fourth quarter and full year 2025 results, adding that the company is at an inflection point as it moves into its next phase. Levi Strauss & Co. (NYSE:LEVI) sees fiscal 2026 adjusted EPS to $1.40 to $1.46, compared with consensus estimates of $1.48.
Levi Strauss & Co. (NYSE:LEVI) designs, markets, and sells apparel and accessories globally under brands including Levi’s, Levi Strauss Signature, Denizen, and Beyond Yoga.
8. Kontoor Brands, Inc. (NYSE:KTB)
Potential upside: 24.93%
Number of Hedge Fund Holders: 23
On February 4, 2026, Jefferies initiated coverage of Kontoor Brands, Inc. (NYSE:KTB) with a Hold rating and a $65 price target. The firm cited the company’s free cash flow profile and low valuation multiple as positives, but said risks tied to Helly Hansen and tariffs support estimates below consensus. Jefferies added that it expects soft guidance when the company reports fourth-quarter results.
A day earlier, on February 3, 2026, Baird analyst Jonathan Komp named Kontoor Brands, Inc. (NYSE:KTB) a bullish Fresh Pick and reiterated an Outperform rating with a $105 price target. On January 22, 2026, Wells Fargo analyst Ike Boruchow lowered his price target on Kontoor Brands, Inc. (NYSE:KTB) to $95 from $100 while maintaining an Overweight rating. The firm noted that while the broader group has rallied 10% in recent months, Kontoor shares have underperformed by 40%. Wells said bearish investor conversations center on concerns that Helly Hansen was a poor investment and lacks growth, but the firm disagrees and remains bullish.
Kontoor Brands, Inc. (NYSE:KTB) designs, produces, and markets denim and lifestyle apparel, footwear, and accessories primarily under the Wrangler and Lee brands.
7. Boot Barn Holdings, Inc. (NYSE:BOOT)
Potential upside: 27.15%
Number of Hedge Fund Holders: 40
On February 6, 2026, Stephens upgraded Boot Barn to Overweight from Equal Weight and raised its price target to $237 from $196. The firm said the company has a clearly defined earnings growth model and described management as “confident, in control and pulling the right levers.” The upgrade was framed as both a tactical call tied to a potential spring consumer trade and tax refund beneficiaries, as well as a longer-term investment view where near-term stock appreciation could be disproportionate.
Supportive commentary followed strong results. On February 5, 2026, BofA analyst Christopher Nardone increased his price target to $240 from $235 and maintained a Buy rating. He noted that third-quarter results were in line with the company’s preannouncement at the ICR Conference and that quarter-to-date comparable sales rose 5.7% in the first five weeks, or 9.1% excluding winter storm impacts, which the firm called a positive signal. BofA raised its Q4 and FY27 EPS estimates by 1% and 2%, respectively, on a higher sales outlook and said growth remains broad-based across regions and categories.
Boot Barn reported third-quarter revenue of $705.643 million on February 4, 2026, slightly above the $704.84 million consensus estimate. CEO John Hazen said sales increased 16% year over year, with strength across merchandise categories, channels, and geographies. Merchandise margin expanded 110 basis points, helping drive diluted EPS of $2.79. The company guided fiscal 2026 revenue to $2.24 billion to $2.25 billion, compared with the consensus of $2.24 billion.
Boot Barn Holdings, Inc. (NYSE:BOOT) operates specialty retail stores in the United States and internationally. The company’s lifestyle retail chain engages in the sale of western and work-related footwear, apparel and accessories for men, women, and kids.
6. Etsy, Inc. (NYSE:ETSY)
Potential upside: 40.57%
Number of Hedge Fund Holders: 46
On February 11, 2026, BofA lowered its price target on Etsy, Inc. (NYSE:ETSY) to $63 from $73 previously and maintained a Neutral rating ahead of the company’s earnings report scheduled for Thursday, February 19, before market open. The firm said the target reduction reflects recent multiple compressions across the e-commerce space, though it still remains constructive on Etsy’s trajectory as it returns to growth.
Earlier, on January 27, 2026, Stifel analyst Mark Kelley reduced his price target on Etsy, Inc. (NYSE:ETSY) to $62 from $65 previously and kept a Hold rating. The firm said third-party data points to a “healthy” fourth quarter for the broader e-commerce group, but noted recent commentary from Amazon suggesting potential incremental pricing pressure on consumers in 2026.
Earlier in the month, Cantor Fitzgerald analyst Deepak Mathivanan reduced his price target to $55 from $64 and maintained a Neutral rating. While acknowledging lingering macro concerns, Cantor said the outlook for Global Internet stocks into 2026 is improving as AI moves into a “Synergy” phase that could support accelerating revenue growth, improved value capture, and clearer long-term returns on capex. The firm added that valuations remain roughly 20% below medium-term ranges despite 2025 outperformance, positioning the group for potential outperformance in 2026 as estimates and sentiment improve.
Etsy, Inc. (NYSE:ETSY) operates two-sided online marketplaces, including Etsy, Reverb, and Depop, connecting buyers and sellers globally across a range of consumer categories.
5. H&R Block, Inc. (NYSE:HRB)
Potential upside: 44.67%
Number of Hedge Fund Holders: 31
On February 6, 2026, Goldman Sachs lowered its price target on H&R Block, Inc. (NYSE:HRB) to $32 from $48 and maintained a Sell rating. The firm noted that the second quarter is one of the company’s seasonally lightest periods and said the upcoming 2026 tax season carries risks of limited growth and potential market share loss. Goldman also flagged competitive pressures from TurboTax’s expansion into assisted tax preparation and from AI-native entrants in the tax and accounting space.
Two days earlier, on February 4, 2026, Barrington analyst Alexander Paris reduced his price target to $50 from $62 while keeping an Outperform rating. He said first-quarter results came in ahead of expectations and that fiscal 2026 guidance was reaffirmed.
H&R Block, Inc. (NYSE:HRB) reported second-quarter revenue of $198.9 million on February 3, 2026, above the $187.36 million consensus estimate. The company reiterated that its business is highly seasonal and that the second quarter typically contributes modestly to annual revenue and often results in a net loss. CFO Tiffany Mason said the company delivered double-digit revenue growth and reaffirmed its full-year outlook, citing solid performance across Assisted, DIY, and Wave, along with disciplined capital allocation.
H&R Block, Inc. (NYSE:HRB) provides assisted and do-it-yourself tax return preparation services across the United States, Canada, and Australia.
4. McGraw Hill, Inc. (NYSE:MH)
Potential upside: 46.75%
Number of Hedge Fund Holders: 19
On February 12, 2026, BMO Capital lowered its price target on McGraw Hill, Inc. (NYSE:MH) to $19 from $21 and maintained an Outperform rating. The firm said the company delivered a strong quarterly beat, with Higher Education outperforming due to share gains, market skew growth, reserve release upside, and product mix, while K-12 results came in weaker than expected.
That same day, JPMorgan raised its price target on McGraw Hill, Inc. (NYSE:MH) to $22 from $21 and kept an Overweight rating. McGraw Hill reported third-quarter revenue of $434.2 million on February 12, 2026, ahead of the consensus estimate of $410.11 million. Simon Allen, who retired as President and CEO on February 9, 2026, and will remain Chair of the Board, said the results reflected disciplined execution and progress in strengthening the company’s financial profile and digital transformation. He pointed to scaled, data-driven solutions supporting personalized learning and expressed confidence in successor Philip Moyer, citing his experience in technology and artificial intelligence. The company also raised its fiscal 2026 revenue outlook to $2.07 billion to $2.09 billion from a prior range of $2.03 billion to $2.06 billion.
McGraw Hill, Inc. (NYSE:MH) provides information and learning solutions across K-12, Higher Education, Global Professional, and International markets, offering blended digital and print curricula and educational products.
3. Dutch Bros Inc. (NYSE:BROS)
Potential upside: 49.55%
Number of Hedge Fund Holders: 46
On February 12, 2026, Dutch Bros Inc. (NYSE:BROS) reported fourth-quarter revenue of $443.6 million, above the consensus estimate of $424.9 million. Systemwide same shop sales increased 7.7%, and systemwide same shop transactions rose 5.4% compared with the same period in 2024. Company-operated same shop sales grew 9.7%, with transactions up 7.6%. CEO Christine Barone said the company delivered a record-breaking year five years into its life as a public company, highlighting a defined path toward sustainable, profitable growth. She pointed to fourth-quarter revenue growth of 29%, system same shop sales growth of 7.7%, and company-operated same shop sales growth of 9.7%, driven by higher transactions and what she described as a compelling value proposition. Adjusted EBITDA increased 49%, outpacing topline growth and supporting continued investment in the business. Dutch Bros guided fiscal 2026 revenue to a range of $2.00 billion to $2.03 billion, compared with consensus estimates of $2.04 billion.
Earlier, on January 20, 2026, Morgan Stanley lowered its price target on Dutch Bros Inc. (NYSE:BROS) to $82 from $84 previously while maintaining an Overweight rating as part of its 2026 outlook for restaurants and foodservice distributors.
Dutch Bros Inc. (NYSE:BROS) operates and franchises drive-thru coffee shops across the United States through its Company-Operated Shops and Franchising segments.
2. Birkenstock Holding plc (NYSE:BIRK)
Potential upside: 50.52%
Number of Hedge Fund Holders: 40
On February 12, 2026, Birkenstock Holding plc (NYSE:BIRK) reported first-quarter revenue of EUR 401.9 million, up from EUR 361.72 million a year earlier. CEO Oliver Reichert said the results reflected continued strong demand during the holiday season and reiterated comments made at the company’s Capital Markets Day in New York on January 28th. He described Birkenstock Holding plc (NYSE:BIRK) as a purpose-driven brand with a long growth runway and pointed to a three-year plan targeting 13–15% constant currency revenue growth and EBITDA margins above 30%. Oliver Reichert also emphasized the company’s vertically integrated supply chain and said management intends to steer the business by geography, channel, and product to maximize profit per pair while maintaining brand equity.
Analyst sentiment has leaned constructive. On February 3, 2026, Williams Trading upgraded Birkenstock to Buy from Hold with an unchanged $49 price target, saying there were few surprises from Capital Markets Day and that the upgrade was based purely on valuation.
Earlier, on January 30, 2026, Goldman Sachs analyst Louise Singlehurst lowered her price target to $59 from $62.80 but maintained a Buy rating. She said the Capital Markets Day presentation pointed to continued strong momentum and described the valuation as “attractive,” noting full price realization above 90% and structural growth opportunities in underpenetrated markets.
Birkenstock Holding plc (NYSE:BIRK) engages in the manufacture and sale of footwear products in the Americas, Europe, the Middle East, Africa, and the Asia Pacific.
1. Bright Horizons Family Solutions Inc. (NYSE:BFAM)
Potential upside: 58.87%
Number of Hedge Fund Holders: 34
On February 12, 2026, Bright Horizons Family Solutions Inc. (NYSE:BFAM) reported fourth-quarter revenue of $734 million, ahead of the consensus estimate of $727.44 million. CEO Stephen Kramer said the company’s diversified and integrated education and care solutions, supported by a broad client base, drove a strong quarter and finish to the year. He highlighted Back-Up Care as a standout, generating more than $725 million in revenue in 2025, and said the company remains focused in 2026 on enhancing services and investing in people and technology to drive growth, margin progress, and care quality. Bright Horizons Family Solutions Inc. (NYSE:BFAM) guided fiscal 2026 revenue to a range of $3.075 billion to $3.125 billion, compared with consensus estimates of $3.12 billion.
On January 21, 2026, UBS analyst Joshua Chan lowered the firm’s price target on Bright Horizons Family Solutions Inc. (NYSE:BFAM) to $107 from $120 previously and kept a Neutral rating on the shares. The firm updated its model ahead of the Q4 earnings report.
Bright Horizons Family Solutions Inc. (NYSE:BFAM) provides early education and childcare, back-up care, educational advisory, and other workplace solutions services for employers and families in the United States, Puerto Rico, the United Kingdom, the Netherlands, Australia, and India.
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