3 Consumer Goods Buys That Wall Street Loves

Investors shouldn't take analysts' ratings and price targets too seriously, but it's worth looking at the stocks that are loved by the analysts on Wall Street. Coca-Cola (NYSE: KO), The TJX Companies (NYSE: TJX), and Dutch Bros (NYSE: BROS) are three consumer goods stocks that analysts are excited about. All three look like solid picks for an uncertain economy.

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1. Coca-Cola

Wall Street analysts are excited about Coca-Cola stock. Among the 25 analysts having an active rating on the stock in October, Coca-Cola garnered eight strong buy ratings and 14 buy ratings. The average analyst price target is nearly $78 per share, well above the current stock price.

Coca-Cola's third-quarter earnings report on Tuesday gave investors even more to like. Revenue grew by 5% year over year while global unit case volume edged up by 1%, a solid result given the tough macroeconomic backdrop. Coca-Cola's adjusted earnings per share rose by 6% to $0.82, beating analyst expectations.

In an uncertain economy, Coca-Cola's brand power is a valuable asset. Price increases drove part of the company's revenue growth in the third quarter, and consumers appeared unfazed. With meaningful pricing power, Coca-Cola is well positioned to weather any economic storm.

2. The TJX Companies

Off-price retailer TJX is a Wall Street darling, with 16 buy ratings and four strong buy ratings from analysts. There's a good reason for all the analyst love. TJX has been knocking it out of the park this year, even as other retailers struggle with the impact of tariffs and inflation.

In TJX's second quarter, comparable sales rose by 4%, beating the company's own expectations. The number of customer transactions grew across all the company's divisions. "As we have seen through so many different retail and economic environments, consumers were drawn to our excellent values and brands," said TJX CEO Ernie Herrman.

For the full fiscal year, TJX sees comparable sales growth of around 3%, along with a pre-tax profit margin between 11.4% and 11.5%. Earnings per share should rise by 6% or 7%, a solid result given the backdrop of U.S. tariffs. While the retail business as a whole is facing challenges, TJX is a rare bright spot.

3. Dutch Bros

Wall Street analysts see big gains ahead for coffee chain Dutch Bros. There are 12 buy ratings and four strong buy ratings currently on the stock, and the average price target is $81. That's well above the current stock price, which is hovering around $56 per share.

Analysts are right to be optimistic. Dutch Bros' revenue surged 28% year over year in the second quarter, driven by new store openings and a 6.1% rise in same-store sales. Dutch Bros may be benefiting from the struggles at coffee giant Starbucks. Starbucks reported a 2% same-store sales decline in its latest quarter as it attempts a revival spearheaded by CEO Brian Niccol.

Despite an uncertain economy, Dutch Bros is winning with consumers. With plenty of room for new locations, revenue and earnings can move much higher in the years ahead.

Timothy Green has no position in any of the stocks mentioned. The Motley Fool has positions in and recommends Starbucks and TJX Companies. The Motley Fool recommends Dutch Bros. The Motley Fool has a disclosure policy.