Mizuho Names Walmart and Costco as Top Consumer Stock Picks

Mizuho Securities has identified its top stock picks within the consumer sector, highlighting retail giants Walmart and Costco for their strong competitive advantages and growth potential. The firm's analysis focused on companies demonstrating operational excellence, network effects, and sustainable unit economics, which it believes can outperform the broader market.

Key Retail Picks

Mizuho's list is led by two of the largest names in U.S. retail, with specific analysis supporting their long-term value.

• Walmart (NYSE: WMT): Named Mizuho's top pick in the consumer internet space with a $130 price target, representing a multiple of approximately 36 times the firm's fiscal 2028 earnings per share (EPS) forecast. Mizuho's proprietary research suggests the market undervalues Walmart's ultra-fast delivery network, which it sees as a growing competitive moat and demand-aggregation platform.
• Costco (NASDAQ: COST): Designated the top choice in hardlines and broadlines retail, carrying a $1,100 price target. This valuation is based on roughly 43 times Mizuho's fiscal 2028 EPS estimate. The firm noted that while new store openings may be temporarily cannibalizing traffic from high-volume locations, high U.S. membership renewal rates of over 90% and accelerating premium membership upgrades underscore the company's fundamental strength.

Growth-Oriented Selections

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The firm also highlighted two other consumer-facing companies with significant expansion potential.

• Dutch Bros (NYSE: BROS): The coffee chain was recommended for its attractive value proposition and potential for over 15% annual store expansion. Mizuho assigned an $80 price target, arguing that its current valuation—24 times its projected 2027 enterprise value to EBITDA ratio—does not fully capture its long-term growth prospects.
• Life Time Group (NYSE: LTH): The premium fitness club operator earned an Outperform rating from Mizuho, which cited robust membership growth, enhanced pricing power, and improving profit margins. The positive outlook follows the company's recent second-quarter results, which surpassed analyst expectations and led to an upward revision of its full-year 2026 guidance.

Market Context

Mizuho's positive stance on these retailers is shared by other Wall Street firms. UBS recently reiterated its Buy rating on Walmart, noting balanced market expectations for its upcoming earnings report. Following Costco's strong June same-store sales growth of 7.0% for core merchandise, both Evercore ISI and Baird reaffirmed their Outperform ratings on the warehouse club.