These Consumer Stocks Are The Top Analyst Picks at Raymond James

Investing.com -- Raymond James has updated its Analyst Current Favorites list in the consumer sector, highlighting opportunities ranging from homebuilders benefiting from merger activity to companies executing turnaround strategies.

The list features stock ideas from equity research analysts, with each analyst permitted to include only one "buy" idea from their coverage rated Strong Buy or Outperform at any given time.

M/I Homes

Raymond James added the Strong Buy-rated homebuilder following Berkshire Hathaway’s acquisition of Taylor Morrison at a 24% premium. The broker believes Berkshire’s endorsement will help establish a valuation floor for homebuilders as merger activity builds momentum. MHO is viewed as a deeply undervalued, high-quality platform that could attract acquisition interest.

The Midwest-based builder maintains healthy gross margins above peer averages through improved construction cycle times and production efficiency. With mid-single-digit year-over-year community count growth and a pristine balance sheet, MHO has capacity for continued share repurchases backed by approximately a five-year supply of owned and controlled lots.

Somnigroup International

The recent pullback presents a compelling opportunity, according to Raymond James. The firm sees a clear path to solid EBITDA growth and strong free cash flow generation, with plans to allocate 50/50 to dividends and share repurchases beginning in 2026.

Key drivers include incremental synergies from the Mattress Firm integration, which exceeded initial expectations, continued share gains across all segments, and ongoing margin expansion from mix, scale, and operational efficiencies.

The Estee Lauder Companies

Upgraded to Strong Buy as the turnaround shifts from story to execution. Raymond James believes fiscal 2025 marked the earnings trough, with improving U.S. market share and China category growth supporting faster sales and profit growth. Travel Retail should present less of a headwind, while the Profit Recovery & Growth Plan supports accelerating investments.

Wingstop

Added based on expectations for meaningful comparable sales improvement through the second half of 2026. Catalysts include new value promotions, the first-ever loyalty program launched May 27, the FIFA World Cup, and optimized Smart Kitchen rollout improving speed and order accuracy.

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