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Written by Catie Hogan for The Motley Fool->
Warren Buffett increased Berkshire Hathaway's position in Constellation Brands in 2025 before retiring.
Walmart's global advertising business grew 46% in fiscal year 2026.
PepsiCo lowered prices of many of its products by up to 15% in an effort to lure back customers.
In a time when shoppers are dismayed by sticker shock across all types of stores, four companies will remain atop the best consumer stocks to buy in 2026 for their resilience, competitive moats, and ability to keep customers happy. Walmart (NASDAQ: WMT), Costco (NASDAQ: COST), PepsiCo (NASDAQ: PEP), and Constellation Brands (NYSE: STZ) do more than just survive economic downturns; they are positioned to continue to grow through them.
Back in December 2025, Walmart switched from the New York Stock Exchange (NYSE) to the Nasdaq to better align with its identity as a tech-driven, omnichannel retailer. Walmart has an impressive diversified portfolio ranging from groceries to household goods and even a rapidly growing advertising business. In this regard, Walmart competes directly with the behemoth Amazon.
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Walmart's financials are exceptional. In fiscal year 2026, the retailer reported a 4.7% increase in overall revenue, bringing the total to $713 billion. The global advertising business was the real star of the year, growing 46% to $6.4 billion. Walmart raised its quarterly dividend to $0.2475 per share, which works out to $0.99 per share per year. The company has now increased dividends for 53 consecutive years.
Walmart's stock is up 18% in 2026, and the company has surpassed the $1 trillion market cap milestone. Walmart's continued growth, combined with its consistency and solid dividend, makes it a must-have for investors buying consumer staples stocks -- with a refreshing high-tech twist.
Costco has created a growth flywheel that seems nearly indestructible. The membership model is extremely resilient and reliable, as more than 90% of customers renew each year. Costco's digital sales also grew 22.6% in its most recent quarter. This combination is fueling Costco's tremendous success.
Costco's stock does trade at a premium, with its trailing P/E ratio just above 50. The stock's dividend has been consistently increased and is now $1.47 per share each quarter. Costco's premium pricing is justified by its revenue predictability and its ability to sustain growth across economic cycles. Costco has plans to open 28 more locations this year alone.
PepsiCo is another Dividend King on the list, meaning it has raised its dividend for more than 50 consecutive years. Pepsi's dividend yield is now an impressive 3.61%. For income-focused investors, Pepsi is a worthy addition to the portfolio.
What's most interesting about Pepsi right now is how it is going about luring back customers. The beverage and snack company recently lowered the prices of many of its products by up to 15% after activist investor Elliott Investment Management began pressuring the company. This bucks the industry trend and was a risky bet, but as of its most recent quarterly earnings, the strategic decisions seem to be paying off.
Pepsi's stock is also reasonably priced at 24 times trailing earnings and, with positive momentum, looks to be a strong growth-and-income investment for long-term investors. Pepsi itself is well diversified, boasting more than 200 brands under its umbrella.
There's no doubt Constellation Brands is a riskier pick than the other companies listed above. However, there could be plenty of upside with Constellation. The company is not without its challenges, but those have largely been priced into the stock at this point.
In fiscal year 2026, Constellation generated $1.8 billion in free cash flow and used part of it to fund its dividend. The beverage company also repurchased about $1 billion in shares.
Most notably, famed investor Warren Buffett initiated and then continued to build Berkshire Hathaway's position in Constellation before retiring. The company is very reasonably priced and poised for growth as it focuses on the premium beer sector. As of this writing, Constellation's stock is still down 20% in the past 12 months, and has a very attractive forward P/E ratio just above 12.
If you're an investor looking for growth, income, or even potential upside, these four consumer staples stocks are hard to beat. Steady performance and compound growth are the hallmarks of these companies. Particularly in uncertain economic times, these consumer staples titans are a solid foundation for almost any portfolio.
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Catie Hogan has no position in any of the stocks mentioned. The Motley Fool has positions in and recommends Amazon, Berkshire Hathaway, Costco Wholesale, and Walmart. The Motley Fool recommends Constellation Brands. The Motley Fool has a disclosure policy.
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
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