The team at Macquarie Group Ltd (ASX: MQG) has been busy looking for investment opportunities in the consumer sector.
The good news for investors is that its analysts believe there are several ASX shares out there that could deliver strong returns for investors in 2026. Especially given its belief that discretionary spending remains healthy. Macquarie explains:
We remain confident in the health of discretionary consumption after Black November, and into Christmas, implying low macroeconomic risks to the Small-Cap Discretionary retail stocks under our coverage.
Our analysis gives us confidence in the health of the underlying consumer for discretionary retailers, heading into 2H26E. Given consumer discretionary share prices have all declined YTD FY26 so far we think this represents a valuation opportunity.
Here are three ASX consumer shares the broker is positive on:
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Breville Group Ltd (ASX: BRG)
Macquarie has named appliance manufacturer Breville as one of its top picks. Although there are concerns about US trade tariffs, it notes that these are transitory and its medium to long term outlook remains very positive. It said:
Breville Group is one of our top picks in discretionary retailers. Despite transitory tariff impacts, we continue to see positive medium to long term outlook, with structural growth in coffee, new product development and new market expansion driving value.
Breville is currently trading below its long-run average Relative P/E to the ASX300, we see a valuation opportunity for investors in BRG.
Macquarie has an outperform rating and $39.20 price target on its shares. This implies potential upside of over 30%.
Lovisa Holdings Ltd (ASX: LOV)
Fashion jewellery retailer Lovisa is another ASX consumer stock that Macquarie is bullish on. It has an outperform rating and $37.30 price target on its shares. Based on its current share price, this suggests that upside of over 20% is possible between now and this time next year.
In addition, the broker rates Universal Store Holdings Ltd (ASX: UNI) highly and has named it as an ASX stock to buy.
Macquarie currently has an outperform rating and $10.20 price target on its shares. This implies potential upside of approximately 25%.
The broker believes both stocks are undervalued given their strong growth outlook. Commenting on the two retailers, Macquarie said:
We think LOV & UNI both have a strong outlook that isn't reflected in their current valuations. Both stocks have de-rated over FY26 so far, and are now trading broadly in-line with their long-run average Relative P/Es to the ASX300 – despite the above data indicating relatively low macroeconomic risk, and our view that both stocks still have appealing store rollout stories (UNI: Australia, LOV: UK/US).
