KDP

The Coca-Cola Company KO is slated to report third-quarter 2026 earnings on Oct. 27, before the opening bell. The company is expected to register year-over-year top and bottom-line growth when it posts third-quarter numbers. The Zacks Consensus Estimate for revenues is pegged at $12.9 billion, implying 4.2% growth from the year-ago quarter's reported figure. The consensus estimate for earnings is pegged at 87 cents per share, indicating 6.1% growth from the prior-year quarter's reported figure. The consensus mark for earnings has been unchanged in the past 30 days. The Atlanta, GA-based company has been reporting steady earnings, as evidenced by its positive earnings surprise trend in the trailing 12 quarters. Coca-Cola delivered a trailing four-quarter earnings surprise of 4.6%, on average. On the last reported quarter's earnings call, the company registered an earnings surprise of 5.4%. Given its positive record, the question is, can KO maintain its momentum? CocaCola Company (The) price-eps-surprise | CocaCola Company (The) Quote Our proven model does not conclusively predict an earnings beat for KO this time around. The combination of a positive Earnings ESP and a Zacks Rank #1 (Strong Buy), 2 (Buy) or 3 (Hold) increases the chances of an earnings beat. You can uncover the best stocks to buy or sell before they are reported with our Earnings ESP Filter. Coca-Cola currently has a Zacks Rank #2 and an Earnings ESP of -1.31%. You can see the complete list of today's Zacks #1 Rank stocks here. Coca-Cola's third-quarter 2026 results are expected to reflect the effectiveness of its all-weather strategy and the resilience of its diversified global portfolio. The company's performance is likely to have benefited from steady organic revenue growth, strategic pricing actions and continued gains in global value share across the non-alcoholic ready-to-drink beverage category. KO's strong brand equity and disciplined execution have enabled it to sustain pricing power despite a challenging consumer environment. Its revenue growth management strategies, coupled with targeted affordability initiatives, are helping strike a balance between driving revenues and maintaining consumer engagement. Our model predicts organic revenue growth of 3.3% and comparable EPS to rise 5.5% year over year to 87 cents for the third quarter. Coca-Cola's continued investments in innovation, digital transformation and marketing capabilities are expected to have further strengthened its competitive positioning. Product innovation and culturally relevant marketing campaigns are enhancing brand appeal and expanding consumer reach across markets. The company's evolving marketing approach, integrating digital platforms, live experiences and in-store engagement, is fostering deeper consumer connections and supporting long-term brand loyalty. Meanwhile, productivity improvements, disciplined revenue growth management and moderating inflationary pressures are likely to have supported margin performance. Looking ahead, Coca-Cola has been focused on sustaining healthy margins through operational efficiencies, favorable price/mix trends and continued productivity initiatives. Gradually easing inflationary pressures, alongside disciplined cost management, should further strengthen its profitability and support resilient earnings growth. Our model predicts the adjusted operating margin to expand 20 bps year over year to 32.1% in the third quarter, led by a 30-bps adjusted gross margin expansion, offset by a 10-bps increase in the SG&A expense rate. For third-quarter 2026, the company expects comparable revenues to include a 1% currency tailwind and a roughly 1% headwind from acquisitions and divestitures. Comparable earnings are projected to include a 3% currency benefit, with minimal pressure from portfolio changes. However, Coca-Cola is expected to have encountered volume headwinds across key markets, particularly North America and Europe, amid shifting consumer preferences and persistent economic pressures. Inflationary challenges have continued to weigh on consumer spending, with lower-income households becoming increasingly price-sensitive and cautious about discretionary purchases. This constrained spending environment has dampened demand, highlighting underlying weakness in consumer consumption trends across several markets. Although Coca-Cola continues to benefit from favorable price/mix trends, sustained volume softness remains concerning for its underlying business momentum. Prolonged demand weakness, particularly among lower-income consumers, could limit growth opportunities and increase the company's reliance on pricing to drive revenues. KO shares have rallied 32.6% year to date. The stock has outpaced the broader industry and the Consumer Staples sector's 20.2% and 12.7% growth, respectively. The KO stock has also outperformed the S&P 500 index, which has risen 12.2% in the same period. Image Source: Zacks Investment Research Coca-Cola stock has outperformed its competitors, Monster Beverage Corporation MNST and Keurig Dr Pepper Inc. KDP, which have risen 21.6% and 23.1%, respectively, year to date. Coca-Cola has also outpaced PepsiCo Inc.'s PEP decline of 6.2% in the same period. From the valuation standpoint, KO trades at a forward 12-month P/E multiple of 26.62X, exceeding the industry average of 20.18X and the S&P 500's average of 19.43X. Coca-Cola's valuation appears quite pricey. Image Source: Zacks Investment Research KO undoubtedly commands a high valuation, reflecting its strong market positioning, brand power and long-term growth potential compared with other non-alcoholic beverage companies. However, we believe that its valuation is too stretched at this time. Coca-Cola remains a powerhouse in the beverage industry, commanding more than 40% of the global non-alcoholic beverage market. The company's enduring success is driven by a formidable market presence, world-class marketing capabilities and a relentless focus on innovation. With a portfolio boasting more than 4,700 products and 500 brands, spanning sodas, juices, waters and energy drinks, Coca-Cola continues to reinforce its leadership. KO's dominant market share, broad product range and strategic emphasis on innovation and digital transformation position it well for sustained long-term growth. However, short-term headwinds, such as inflationary pressures, global macroeconomic uncertainties and unfavorable currency fluctuations, remain challenges to navigate. Coca-Cola's third-quarter earnings release is expected to reflect solid momentum, supported by resilient pricing power, steady organic revenue growth, productivity improvements and disciplined margin management. Its strong brand portfolio, innovation initiatives and extensive global presence continue to reinforce business resilience and long-term growth prospects. However, persistent volume softness across key markets, particularly North America and Europe, remains concerning, as inflationary pressures and cautious spending among lower-income consumers continue to weigh on demand. Despite Coca-Cola's sound fundamentals and encouraging growth drivers, the stock's impressive year-to-date rally and premium valuation leave limited room for earnings disappointments. Sustained volume weakness could constrain revenue growth and increase dependence on pricing actions to maintain momentum. While the company's operational strength and strategic initiatives remain supportive, investors may find it prudent to adopt a wait-and-see approach until clearer signs of volume recovery and consistent earnings growth emerge, especially given the stock's elevated valuation ahead of its upcoming earnings release. Want the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days. Click to get this free report CocaCola Company (The) (KO) : Free Stock Analysis Report PepsiCo, Inc. (PEP) : Free Stock Analysis Report Monster Beverage Corporation (MNST) : Free Stock Analysis Report Keurig Dr Pepper, Inc (KDP) : Free Stock Analysis Report This article originally published on Zacks Investment Research (zacks.com). Zacks Investment Research

Image from Pixabay PepsiCo (PEP) shares gained 3.7% on October 8, 2026, the day it reported fiscal Q3 2026. The S&P 500 fell 0.5% during the same session. That advance came even as executives lowered their full-year earnings growth forecast while simultaneously raising their sales forecast. Buyers might be wagering that the company can continue to move higher volumes of food and beverages, leaving elevated costs as only a temporary headwind. So is the sales growth solid, and will rising costs keep squeezing its profit? PepsiCo Is Selling More Food And Drinks Sales growth has picked up so far. PepsiCo posted $25.3 billion in revenue, topping the consensus estimate of $24.9 billion. The company also reported core earnings per share of $2.34, ahead of projections of $2.29. Revenue for fiscal Q3 2026 increased 5.6% from a year earlier, outpacing the 2.6% growth recorded in fiscal Q3 2025. Executives noted on the October 8 call that the company moved more product: global beverage volume climbed 3%, and global food volume rose 1%. They described a stellar quarter for international operations, where organic revenue advanced 8%. The domestic market provided the soft spot. North American beverage operations slowed during the quarter, executives said, even though the region's food business improved from fiscal Q2 2026. PepsiCo Expects Rising Costs To Squeeze Its Profit Profitability remains the weaker side of the ledger, and executives anticipate further pressure before the year ends. At the midpoint of its range, PepsiCo now expects core earnings per share to grow 3.0% in fiscal 2026. That marks a decline from its previous outlook of growth at the low end of a 5% to 7% range. Management told analysts on the call that the margin, rather than sales, is behind the downward revision. Input costs are trending higher, and the specific mix of products sold is working against profit. PepsiCo had hedged its costs for six to 12 months. Those hedges are now running off, meaning more of the higher commodity costs will surface in the fourth quarter. Reported operating margin actually rose to 16.9% in fiscal Q3 2026 from 14.9% a year earlier. The squeeze shows up in the core figures instead. Core operating profit grew 3% and EPS rose 2%, both slower than sales. Management said margin performance remains below its own expectations. What Is Behind PepsiCo's Higher Sales Forecast? Currency fluctuations and acquisitions drove the sales upgrade, rather than accelerating growth in the existing business. PepsiCo raised its fiscal 2026 forecast for net revenue growth to 6.0%, up from the 5.0% projected in July. Executives expect currency to add 1.5 points to that total and acquisitions, net of divestitures, to supply another 1.5 points. The underlying organic growth forecast stayed flat at 3.0%. If volume gains fade while costs continue to climb, the higher sales forecast leaves shareholders with no additional organic growth to fall back on. Executives also declined to provide an outlook for 2027 margins on the call, stating they would rather not offer a partial view at this time. Sales growth looks solid for now, with higher volumes of food and drinks sold globally. At the same time, profitability faces mounting pressure from costs, and executives anticipate more of that strain materializing in the fourth quarter. Full-year core EPS growth, measured against the new 2.5% to 3.5% guide, will be the central figure to watch when PepsiCo reports in early February 2027. Does This Mean You Should Act On PEP? Our purpose is to inform you with unique data so you make the right investment decisions. That said, betting on a single stock is always risky, no matter which direction you choose. There is a smarter approach. Since its inception, the Trefis High Quality (HQ) Portfolio has returned 105%, beating the benchmark that combines the three major indices - the S&P 500, S&P Mid-cap, and Russell 2000. And it did so without taking the concentrated risk that comes with do-it-yourself stock picking. If that is how you want to invest, the HQ Portfolio is the place to start.

The Boston Beer Company, Inc. SAM is likely to register growth in its bottom line when it reports third-quarter 2026 results on Oct. 22, 2026, after market close. The company's top line is expected to have declined year over year. The Zacks Consensus Estimate for revenues is pegged at $523.4 million, implying a 2.6% drop from the prior-year quarter's reported figure. The consensus mark for earnings has been stable in the past 30 days at $4.30 per share. This implies a rise of 1.2% from the year-ago quarter. In the last reported quarter, the company delivered a negative earnings surprise of 23.5%. SAM has a trailing four-quarter negative earnings surprise of 3.4%, on average. Boston Beer's quarterly performance is likely to have been influenced by brand trends, consumer spending, cost pressures and the effectiveness of its growth initiatives. Weakness in Twisted Tea and Truly, along with declines in Samuel Adams and Dogfish Head, is likely to have weighed on volumes and market share. Competitive pressure from spirits-based ready-to-drink (RTD) beverages and softer consumer demand remain key concerns. Persistent inflation, higher gasoline prices and reduced discretionary spending could further pressure alcoholic beverage demand. Meanwhile, rising aluminum, energy, freight and tariff costs may constrain profitability. Boston Beer expects 2026 tariff expenses of $20-$30 million. Boston Beer has been witnessing weak depletion, with continued challenges in the hard seltzer category for a while. The hard seltzer segment remains under pressure, which has been weighing on Truly Hard Seltzer as it faces declining volumes and continued loss of shelf space. Intense competition across flavored malt beverages and tea-based drinks is further straining shelf space, as retailers streamline assortments and reduce the number of brands they carry. Such limitations are likely to hurt the company's top-line results during the quarter under review. On the flip side, Boston Beer's focus on strategic pricing, product innovation and brand development to strengthen its market position and drive performance appears encouraging. The company is expanding its presence in the Beyond Beer category, which continues to outpace the traditional beer market. Sun Cruiser remains a major growth driver, benefiting from triple-digit depletion growth, expanding distribution and favorable product mix. Strong price realization and ongoing procurement savings are helping offset the inflationary and tariff pressures. These positives are likely to have contributed to the company's bottom-line performance in the quarter under review. The Boston Beer Company, Inc. price-eps-surprise | The Boston Beer Company, Inc. Quote Our proven model does not conclusively predict an earnings beat for Boston Beer this time around. The combination of a positive Earnings ESP and a Zacks Rank #1 (Strong Buy), 2 (Buy) or 3 (Hold) increases the chance of an earnings beat. But that is not the case here. Boston Beer currently has an Earnings ESP of 0.00% and a Zacks Rank of 3. You can uncover the best stocks before they are reported with our Earnings ESP Filter. From a valuation perspective, Boston Beer stock is trading at a premium relative to historical and industry benchmarks. SAM has a forward 12-month price-to-earnings of 17.73X, above the Beverages - Alcohol industry's average of 14.85X. Boston Beer shares have shown a downward trend, losing 27.1% in the past six months against the industry's growth of 5.1%. Image Source: Zacks Investment Research Here are some companies, which according to our model, have the right combination of elements to beat on earnings this reporting cycle. Keurig Dr Pepper KDP currently has an Earnings ESP of +0.05% and a Zacks Rank of 2. The company is likely to register growth in the top and bottom lines when it reports third-quarter 2026 numbers. The consensus mark for revenues is pegged at $7.4 billion, which indicates a rise of 70.8% from the figure reported in the year-ago quarter. You can see the complete list of today's Zacks #1 Rank stocks here. The Zacks Consensus Estimate for Keurig Dr Pepper's quarterly earnings per share of 64 cents implies a rise of 18.5% from the year-ago quarter. The consensus mark has been stable in the past 30 days. KDP has a trailing four-quarter earnings surprise of 2.7%, on average. Celsius Holdings, Inc. CELH currently has an Earnings ESP of +4.00% and a Zacks Rank of 3. The company is likely to register an increase in the top line when it reports third-quarter 2026 numbers. The Zacks Consensus Estimate for CELH's quarterly EPS is pegged at 34 cents, down 19.1% from the year-ago period. The consensus mark dipped a penny in the past 30 days. The consensus estimate for Celsius' quarterly revenues is pegged at $806.2 million, which implies an increase of 11.2% from the prior-year quarter. CELH has a trailing four-quarter negative earnings surprise of 28.5%, on average. Anheuser-Busch InBev BUD currently has an Earnings ESP of +1.01% and a Zacks Rank #3. The Zacks Consensus Estimate for third-quarter 2026 EPS is pegged at $1.14, which implies an increase of 15.2% from the year-ago quarter's actual. The consensus mark for EPS has dipped a penny in the past 30 days. The consensus mark for BUD's quarterly revenues is pegged at $16.3 billion, which indicates growth of 7.3% from the figure reported in the prior-year quarter. BUD delivered a trailing four-quarter earnings surprise of 6.3%, on average. Want the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days. Click to get this free report The Boston Beer Company, Inc. (SAM) : Free Stock Analysis Report Anheuser-Busch InBev SA/NV (BUD) : Free Stock Analysis Report Celsius Holdings Inc. (CELH) : Free Stock Analysis Report Keurig Dr Pepper, Inc (KDP) : Free Stock Analysis Report This article originally published on Zacks Investment Research (zacks.com). Zacks Investment Research

Keurig Dr Pepper Inc. (KDP) is a leading beverage company headquartered in Frisco, Texas. With a market capitalization of approximately $43.2 billion, the company produces, markets, and distributes a broad portfolio of hot and cold beverages through three main segments: U.S. Refreshment Beverages, U.S. Coffee, and International. KDP is set to report its Q3 2026 earnings before the market opens on Tuesday, November 3, 2026. Ahead of the release, analysts expect diluted EPS of 64 cents, up 18.5% from 54 cents in the year-ago quarter. Notably, the company has met or exceeded Wall Street's EPS estimates in each of the past four quarters. - 'When You Say I Should Pay $100 Billion, Then I'm Starting To Do A Little Math': Bill Gates Said He'd Happily Pay 'Over $10 Billion In Taxes' But Some Are Asking Too Much - How to Play Rivian Stock as RIVN Keeps Falling Despite Record Deliveries - Dan Ives Calls SpaceX's $40B Nvidia Chip Debt Plan a 'Smart Move' - Tired of missing midday reversals? The FREE Barchart Brief newsletter keeps you in the know. Sign up now! For fiscal 2026, analysts project EPS of $2.30, up 12.2% from $2.05 in fiscal 2025. EPS is expected to increase another 9.6% year over year to $2.52 in fiscal 2027. KDP stock has risen 22.9% over the past 52 weeks, outpacing both the S&P 500 Index ($SPX), which gained 16%, and the State Street Consumer Staples Select Sector SPDR Fund (XLP), which returned 6.9% over the same period. Keurig Dr Pepper has outperformed the broader market, supported by strong U.S. refreshment-beverage growth, better-than-expected adjusted Q2 earnings, and optimism about debt reduction and its planned business separation. On Sept. 1, KDP announced plans to sell its entire equity stake in Chobani for $800 million and its Allentown, Pennsylvania, manufacturing facility and warehouse for approximately $125 million. The company intends to use the combined $925 million in pre-tax proceeds to reduce debt while expanding its long-term distribution partnership with Chobani, including distribution of La Colombe ready-to-drink lattes and other Chobani-owned beverages. KDP shares rose 2.2% in the next trading session following the announcement. Analysts are somewhat optimistic about KDP, with the stock carrying a consensus "Moderate Buy" rating. Of the 17 analysts covering the stock, 10 recommend a "Strong Buy," one recommends a "Moderate Buy," and six recommend a "Hold." Meanwhile, the average analyst price target of $36.17 implies potential upside of 13.9% from the current share price. On the date of publication, Kritika Sarmah did not have (either directly or indirectly) positions in any of the securities mentioned in this article. All information and data in this article is solely for informational purposes. This article was originally published on Barchart.com

Keurig Dr Pepper has delivered a 23.2% share price return over the past year, helped by big portfolio moves and new product plans. The obvious question is whether that kind of performance still lines up with what the business earns. With the stock most recently closing at US$30.54, investors are increasingly focused on whether its current earnings base can shoulder that valuation. - The 23.2% gain over 12 months puts real weight on the question of whether Keurig Dr Pepper's earnings can support the current share price or if expectations have simply moved ahead of the underlying profit power. - The acquisition of JDE Peet's and the planned split into separate coffee and beverage companies may reshape how cash flows, debt and profit streams are shared across the group. This can change how much investors are willing to pay for each dollar of earnings. - There is a second opinion on Keurig Dr Pepper worth weighing. See what analysts think Keurig Dr Pepper's shares could be worth. The issue now is whether Keurig Dr Pepper's current market value is justified by its earnings when judged against the Fair Ratio benchmark. If you are weighing whether Keurig Dr Pepper's 23.2% one year return is fully backed by its earnings power, it can help to compare that question across 29 high quality undervalued stocks. The P/E ratio is a useful fit for Keurig Dr Pepper because earnings remain a key anchor for how investors judge a branded beverages group. At a P/E of about 30.9x, the stock trades at a clear premium to the Beverage industry average of roughly 16.6x and also sits above the peer group on about 23.8x. That gap means you are paying more for each dollar of profit than for many comparable beverage stocks. Because the Fair Ratio blends factors such as growth, profitability, scale and risk, it points to a lower P/E than where Keurig Dr Pepper is priced today. On this framework, the shares screen as overvalued. Despite the strong Q2 2026 update around JDE Peet's integration and the planned split, the current multiple already reflects a rich view of how those moves translate into earnings. Explore the numbers behind Keurig Dr Pepper's P/E valuation. Simply Wall St Narratives for Keurig Dr Pepper pick up where the valuation puzzle leaves off by spelling out which paths for future growth, margins and earnings would need to play out for the stock to be worth materially more or materially less than it is today on the market, and they sit on the company's Community page. Instead of giving a single number, these scenarios lay out the future that number relies on so you can watch over time whether the story still fits the reality. One of the top community narratives on Keurig Dr Pepper: 16% undervalued "The planned separation of Keurig Dr Pepper into a North America focused Beverage Co and a global coffee focused company by early 2027..." Discover why this Narrative puts Keurig Dr Pepper at 16% undervalued. Before you finish your work on Keurig Dr Pepper, it is worth asking who is steering the business and how their pay packets line up with your interests. See who runs Keurig Dr Pepper and how they are paid. This article by Simply Wall St is general in nature. We provide commentary based on historical data and analyst forecasts only using an unbiased methodology and our articles are not intended to be financial advice. It does not constitute a recommendation to buy or sell any stock, and does not take account of your objectives, or your financial situation. We aim to bring you long-term focused analysis driven by fundamental data. Note that our analysis may not factor in the latest price-sensitive company announcements or qualitative material. Simply Wall St has no position in any stocks mentioned. Companies discussed in this article include KDP. Have feedback on this article? Concerned about the content? Get in touch with us directly. Alternatively, email [email protected]

PepsiCo, Inc. PEP is expected to register top-line growth when it reports third-quarter 2026 numbers on Oct. 8, before the opening bell. The Zacks Consensus Estimate for third-quarter revenues is pegged at $24.9 billion, implying 3.9% growth from the year-ago quarter's reported figure. For quarterly earnings, the consensus mark is pegged at $2.29, flat with the prior-year quarter. The consensus mark for earnings has moved down by a penny in the past seven days. In the last reported quarter, the company registered an earnings surprise of 0.5%. It has delivered an earnings surprise of 1.7%, on average, in the trailing four quarters. PepsiCo, Inc. price-eps-surprise | PepsiCo, Inc. Quote Our proven model does not conclusively predict an earnings beat for PepsiCo this time around. The combination of a positive Earnings ESP and a Zacks Rank #1 (Strong Buy), 2 (Buy) or 3 (Hold) increases the chances of an earnings beat. But that is not the case here. You can uncover the best stocks to buy or sell before they are reported with our Earnings ESP Filter. PepsiCo currently has a Zacks Rank #4 (Sell) and an Earnings ESP of -0.10%. You can see the complete list of today's Zacks #1 Rank stocks here. PepsiCo's third-quarter earnings release will be closely watched for signs of improvement in North America, sustained international momentum and the company's ability to protect margins amid higher costs. North America remains the key area to monitor. North America continues to lag international performance, as consumers remain cautious amid tighter household budgets and higher inflation. PepsiCo's North American business continues to face weak category demand and uneven volume trends. In the second quarter of 2026, North America organic revenues edged down 0.5%, while PepsiCo Foods North America revenues fell 2% due mainly to lower effective net pricing. PepsiCo Beverages North America posted 1% organic revenue growth, but organic volume declined 4%. Management expects a more gradual recovery in North American trends through the rest of 2026. Tight consumer budgets, inflationary pressure and increased affordability investments may continue to limit pricing and margins. Although convenient foods gained volume share, overall financial performance remains subdued. Since North America is one of PepsiCo's largest and most profitable regions, persistent weakness could offset strong international growth and constrain company-wide organic revenue and earnings momentum. Our model predicts revenues for the PFNA segment to decline 1% year over year in the third quarter. Margins will also be critical. While productivity initiatives continue generating savings, profitability remains under pressure from affordability investments, higher operating costs and inflation. The second-quarter 2026 core operating margin declined 40 basis points as affordability investments, cost inflation and unfavorable mix weighed on profitability. PepsiCo expects higher input-cost inflation in the second half, though productivity savings and tariff refunds should mitigate part of the pressure. The company expects earnings growth to be weighted toward the fourth quarter, raising execution risks. If productivity efforts fail to fully offset inflation, promotional activity and reinvestment, core operating leverage could remain weak and pressure earnings growth in the to-be-reported quarter. However, the company is expected to have benefited from robust international growth, expanding global volume trends, sustained product innovation and productivity initiatives. International organic revenues advanced 7% in the second quarter, marking the 21st consecutive quarter of at least mid-single-digit growth. Investors should watch whether volume growth remains broad-based across beverages and convenient foods. Our model predicts revenues for the International Beverages Franchise (IB Franchise) segment to improve 9% year over year in the third quarter of 2026. In international convenient foods, revenues for EMEA, LatAm Foods and the Asia-Pacific are expected to increase 7%, 5% and 10%, respectively, in the third quarter. PEP shares have exhibited weakness in the past three months. The stock has lost 12.1% compared with the broader industry and the Consumer Staples sector's declines of 3.8% and 6%, respectively. PepsiCo's stock has also underperformed the S&P 500 index's growth of 1.6% in the same period. Image Source: Zacks Investment Research At the current stock price of $125.89, PepsiCo trades 0.6% above its 52-week low mark of $125.16 and 26.6% below its 52-week high of $171.48. The PEP stock has underperformed its peers, including The Coca-Cola Company KO, which rose 3.3% in the past three months. The stock also lagged Monster Beverage Corporation MNST and Keurig Dr Pepper Inc. KDP, which fell 11.8% and 4.3%, respectively, in the past three months. PepsiCo is trading at a forward P/E ratio of 14.24X, below the S&P 500's average of 19.76X and the broader industry's average of 18.49X. PEP's forward 12-month P/E valuation shows a notable discount to the broader market. Image Source: Zacks Investment Research PEP has consistently delivered revenue growth and strong profitability, driven by its diverse product portfolio and global presence. Investments in brands, distribution systems, supply chains, and manufacturing and digital capabilities strengthen its long-term growth potential. Despite its solid financial performance and strategic initiatives, industry dynamics and external risks warrant a cautious investment outlook. Inflationary pressures, operational challenges in North America and shifting consumer behavior have been hurting PEP's performance. Recent market data suggests bleak prospects for near-term recovery in its North America business. PepsiCo enters its third-quarter earnings release with a balanced mix of opportunities and challenges. The company continues to benefit from its diversified portfolio, global scale and sustained investments in innovation, affordability and productivity, which support its long-term growth prospects. However, near-term pressures remain, including higher commercial spending, persistent softness in North American volumes, uncertainty surrounding tariff-related costs and a cautious consumer backdrop. Investors will be looking for clearer evidence that improving volume trends, productivity savings and pricing initiatives are translating into stronger profitability. Particular attention will likely center on the pace of recovery in North America, where demand has remained softer than anticipated, as well as whether international momentum can continue to offset domestic weakness. Although the stock trades at a valuation discount to the broader market, its recent underperformance relative to peers reflects lingering concerns about the pace of its operational recovery. Investors may prefer to remain on the sidelines until clearer signs of sustained improvement emerge in its core North American business. Want the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days. Click to get this free report PepsiCo, Inc. (PEP) : Free Stock Analysis Report CocaCola Company (The) (KO) : Free Stock Analysis Report Monster Beverage Corporation (MNST) : Free Stock Analysis Report Keurig Dr Pepper, Inc (KDP) : Free Stock Analysis Report This article originally published on Zacks Investment Research (zacks.com). Zacks Investment Research

As the craze of earnings season draws to a close, here’s a look back at some of the most exciting (and some less so) results from Q2. Today, we are looking at beverages, alcohol, and tobacco stocks, starting with Keurig Dr Pepper (NASDAQ:KDP). These companies' performance is influenced by brand strength, marketing strategies, and shifts in consumer preferences. Changing consumption patterns are particularly relevant and can be seen in the rise of cannabis, craft beer, and vaping or the steady decline of soda and cigarettes. Companies that spend on innovation to meet consumers where they are with regards to trends can reap huge demand benefits while those who ignore trends can see stagnant volumes. Finally, with the advent of the social media, the cost of starting a brand from scratch is much lower, meaning that new entrants can chip away at the market shares of established players. The 13 beverages, alcohol, and tobacco stocks we track reported a satisfactory Q2. As a group, revenues beat analysts’ consensus estimates by 1% while next quarter’s revenue guidance was 2.2% above. While some beverages, alcohol, and tobacco stocks have fared somewhat better than others, they have collectively declined. On average, share prices are down 3.8% since the latest earnings results. Born out of a 2018 merger between Keurig Green Mountain and Dr Pepper Snapple, Keurig Dr Pepper (NASDAQ:KDP) is a consumer staples powerhouse boasting a portfolio of beverages including sodas, coffees, and juices. Keurig Dr Pepper reported revenues of $7.31 billion, up 75.6% year on year. This print exceeded analysts’ expectations by 0.9%. Despite the top-line beat, it was still a mixed quarter for the company with a beat of analysts’ EPS estimates but full-year revenue guidance meeting analysts’ expectations. Keurig Dr Pepper achieved the fastest revenue growth in the group. Unsurprisingly, the stock is up 3.4% since reporting and currently trades at $31.81. Is now the time to buy Keurig Dr Pepper? Access our full analysis of the earnings results here, it’s free. Founded in 2004 followed by a 2021 IPO, The Vita Coco Company (NASDAQ:COCO) offers coconut water products that are a natural way to quench thirst. Vita Coco reported revenues of $216.2 million, up 28.1% year on year, outperforming analysts’ expectations by 3%. The business had a stunning quarter with a beat of analysts’ EPS and gross margin estimates. Vita Coco pulled off the highest full-year guidance raise among its peers. Although it had a fine quarter compared to its peers, the market seems unhappy with the results as the stock is down 19.7% since reporting. It currently trades at $59.80. Is now the time to buy Vita Coco? Access our full analysis of the earnings results here, it’s free. With its proprietary MetaPlus formula as the basis for key products, Celsius (NASDAQ:CELH) offers energy drinks that feature natural ingredients to help in fitness and weight management. Celsius reported revenues of $817.9 million, up 10.6% year on year, falling short of analysts’ expectations by 6.2%. It was a disappointing quarter as it posted a significant miss of analysts’ EBITDA and EPS estimates. Celsius delivered the weakest performance against analyst estimates of the whole group. Interestingly, the stock is up 7.8% since the results and currently trades at $31.42. Read our full analysis of Celsius’s results here. With a history that goes back more than a century, PepsiCo (NASDAQ:PEP) is a household name in food and beverages today and best known for its flagship soda. PepsiCo reported revenues of $24.18 billion, up 6.4% year on year. This result beat analysts’ expectations by 0.8%. Aside from that, it was a mixed quarter as it recorded gross margin in line with analysts’ estimates. The stock is down 1.5% since reporting and currently trades at $140.38. Read our full, actionable report on PepsiCo here, it’s free. Founded in 1847, Philip Morris International (NYSE:PM) manufactures and sells a wide range of tobacco and nicotine-containing products, including cigarettes, heated tobacco products, and oral nicotine pouches. Philip Morris reported revenues of $11.19 billion, up 10.4% year on year. This print surpassed analysts’ expectations by 5.5%. It was a very strong quarter as it also logged a beat of analysts’ EPS estimates and gross margin in line with analysts’ estimates. Philip Morris scored the biggest analyst estimate beat among its peers. The stock is flat since reporting and currently trades at $187.95. Read our full, actionable report on Philip Morris here, it’s free. Over the past year, investors have been forced to repeatedly answer the same question: what is the market’s biggest risk? The answer has changed several times, and each shift has reshaped market leadership. Late in 2025 and early 2026, artificial intelligence became the market’s primary uncertainty. Investors questioned whether AI would erode software pricing power and weaken competitive moats as AI made it easier to replicate once-differentiated products. By the spring, technology took a back seat to geopolitics. The U.S. conflict with Iran briefly became the market’s dominant narrative, raising concerns about oil prices, inflation, and global growth. But as energy markets remained orderly and fears of a prolonged supply disruption faded, investors quickly turned their focus back to fundamentals. Want to invest in winners with rock-solid fundamentals? Check out our Hidden Gem Stocks and add them to your watchlist. These companies are poised for growth regardless of the political or macroeconomic climate.

Download the Complete Report Here Key Takeaways: Strong topline growth and continued education-channel rebuilding were offset by slower-than-expected manufacturing efficiency at the existing Arps facility. BRFH reported 2Q26 revenue of $4.7 million, up 190% y/y from $1.6 million but down 16% sequentially from $5.6 million in 1Q26 and approximately 9.5% below the low end of $5.2 million guidance. Arps Dairy contributed $3.2 million, including $2.9 million from raw and processed milk, while frozen beverage and food revenue, consisting primarily of legacy Barfresh products, increased 9% y/y to approximately $1.8 million. Consolidated growth remained heavily acquisition-driven, with milk representing roughly 62% of quarterly revenue and core Barfresh recovery not yet fully reflected in reported results. Arps continues to provide supply continuity, while new district wins and returning education customers are expected to contribute more meaningfully with the 2026-27 school year. The principal 2Q pressure point was therefore production, where a slower and more costly manufacturing ramp weighed on gross margin and adjusted EBITDA recovery. Profitability remained pressured by manufacturing inefficiencies, but improving throughput and a more favorable product mix support sequential recovery in 2H26. Gross margin declined to negative 3.2% in 2Q26 from 31.1% in 2Q25 and approximately 18% in 1Q26, while adjusted EBITDA fell to a $1.2 million loss from a $600,000 loss a year ago. The pressure reflected startup costs, equipment limitations and lower than planned productivity at the existing Arps facility, with the impact extending into legacy Barfresh production. Management indicated that repairs and process improvements are improving throughput and yields, while a greater mix of higher margin education products should provide additional support as the 2026-27 school year ramps. Together, these factors support management’s expectation for adjusted EBITDA to improve to a $0.5 million loss to breakeven in 2H26. Arps has restored supply continuity for BRFH, but scaling owned production has required more investment and operational work than initially anticipated. As more Barfresh volume shifted in-house, operating the facility at the required production levels highlighted additional equipment and infrastructure needs that had not been apparent before the acquisition. BRFH therefore moved ice cream production out to prioritize its core smoothie portfolio, while repairs, equipment servicing and process refinements have since improved throughput and yields. Management indicated that a significant portion of the corrective work has already been completed and that remaining requirements at the existing facility should be relatively modest, with focus increasingly shifting to Defiance. Guidance revision quantifies the impact of the slower manufacturing ramp and makes operational efficiency an important 2H26 focus. 2026 revenue guidance was reduced to $23 to $26 million from $28 to $32 million, while adjusted EBITDA guidance was reduced to a loss of $1 million to $2 million from positive $3.2 to $3.8 million. At the respective midpoints, this represents a $5.5 million reduction in expected revenue and an approximately $5.0 million reset in adjusted EBITDA. Management attributed most of the EBITDA revision to ~$1.8 million of higher Arps processing costs, $0.8 million from the loss of the ice cream mix business and $0.8 million of higher material costs, with another $1.2 million tied to delayed legacy Barfresh revenue recovery and unrealized freight and storage synergies. Street’s 2026 revenue estimate of $22.9 million (source: TIKR) sits just below management’s $23 to $26 million guide, suggesting expectations are already relatively conservative; delivery within the range could support upward estimate revisions. Management’s breakdown of the guidance revision indicates that the downgrade is primarily tied to manufacturing efficiency, integration timing and delayed cost savings, making cost per case, throughput and gross margin recovery important operating markers through 2H26. The revised outlook still supports meaningful sequential improvement in 2H26, while education growth and manufacturing progress provide the foundation for continued growth into 2027. With 1H26 revenue of $10.3 million, management’s 2026 guidance implies $12.7 to $15.7 million of revenue in 2H26, with sequential improvement expected in both 3Q26 and 4Q26 as new school districts and returning customers ramp. Management also expects 2H26 adjusted EBITDA to improve to a loss of $0.5 million to breakeven from a $1.46 million loss in 1H26, supported by higher throughput, better cost absorption and a more favorable mix of core Barfresh products. Looking into 2027, Street estimates call for revenue of $29.2 million and adjusted EBITDA of negative $2 million (source: TIKR), implying ~28% revenue growth versus 2026 estimates and a modest improvement in adjusted EBITDA from negative $2.4 million. The revenue growth and modest EBITDA improvement reflect expectations for broader education rollouts, continued customer recovery and gradual improvement in manufacturing economics, while the lower margin Arps milk business remains relatively stable. Education channel momentum continues to build, with new district wins and customer reactivations supporting a stronger 2H26 setup. Several recently won districts began serving BRFH products during the 2025-26 school year and are expected to expand across all locations in the 2026-27 school year, while additional education wins are expected as remaining bids close. BRFH is also reengaging customers that removed products from menus following prior supply disruptions. The timing of these wins helps explain why frozen beverage and food revenue increased 9% y/y in 2Q26, as much of the first half still reflected purchasing decisions made during the prior school year. Management expects incremental 2H26 growth to be driven primarily by higher margin Barfresh products, while the Arps milk business remains relatively stable, supporting a more favorable revenue mix as school-year orders ramp. BRFH’s broker-led commercial model continues to support customer recovery while keeping costs well controlled. Selling, marketing and distribution expense declined 12% y/y to $561,000 in 2Q26 from $634,000, with sales and marketing expense down 28% to $256,000 as the company increasingly relied on brokers to communicate improved supply reliability and rebuild relationships with school districts. Single-serve products are also reducing equipment maintenance requirements in the education channel, providing operating leverage as volume scales. Storage and outbound freight expense increased to $305,000 from $276,000, reflecting the delivery requirements of processed milk, but the broader commercial cost structure remains relatively lean. This should support better operating leverage as higher margin Barfresh volume becomes a larger share of the mix, provided manufacturing efficiency continues to improve. The 44,000-square-foot Defiance facility remains the central strategic catalyst for BRFH’s transition to normalized production economics. BRFH is targeting partial commissioning of core products by year-end 2026, with remaining products expected to follow shortly thereafter. The facility is designed to provide greater throughput, improved production flexibility and more efficient unit economics than the existing plant, directly addressing the equipment reliability and processing constraints that affected 2Q26 results. The company also has a $2.4 million government grant available for qualifying equipment purchases. While the existing Arps facility has already improved supply continuity and reduced reliance on third-party manufacturers, successful commissioning of Defiance should be the more important driver of margin normalization and capacity expansion heading into 2027. The transition will also require careful production sequencing, with the existing facility lease running through September 30 and partial commissioning at Defiance targeted by year-end. Operating expense discipline provided some offset to manufacturing pressure, although higher G&A and financing costs weighed on overall profitability. Selling, marketing and distribution expense declined 12% y/y to $561,000 from $634,000 and was down from approximately $697,000 in 1Q26, reflecting greater use of the broker network and lower equipment-related costs. G&A increased 18% y/y to $794,000 from $673,000, primarily due to higher personnel, recruiting and administrative costs associated with Arps Dairy, while total operating expenses remained broadly flat y/y at $1.37 million. Net loss widened to $1.86 million from $880,000 y/y, with interest expense increasing to $344,000 from $12,000 as acquisition and facility financing became a larger part of the cost structure. Working capital is being positioned for the new school year, with inventory supporting production readiness as education volumes ramp. Inventory increased approximately 30% from year-end 2025 to $2.16 million, driven by raw materials and packaging rising to $1.17 million from $684,000, while finished goods remained broadly stable at approximately $1.0 million. This mix suggests the build is primarily supporting higher production rather than reflecting an accumulation of unsold finished product. Management also indicated that inventory has continued to build through the summer and that current internal capacity, supplemented by co-manufacturers, is sufficient to support existing, returning and newly won school business. Given the supply interruptions experienced last year, maintaining this production buffer should help BRFH convert improving education demand into more consistent revenue. Liquidity remains supported by receivables financing and planned funding sources as the manufacturing build progresses. BRFH ended June with $324,000 of cash and $1.09 million of trade receivables, while operating cash use increased to $3.05 million in 1H26 from $1.58 million a year ago as the company absorbed integration costs, built inventory and reduced trade payables. Receivables facilities provide an additional liquidity buffer, with approximately $3.58 million of borrowing availability at quarter end, subject to eligible collateral. Converting the back-to-school inventory build into sales and receivables, while securing planned financing for Defiance, remains an important balance-sheet consideration through the remainder of 2026. The March convertible financing provides BRFH with funding flexibility, although interest cost and potential dilution remain considerations. BRFH raised $7.5 million through senior convertible notes and used a portion of the proceeds to repay the existing mortgage, leaving the Defiance property unencumbered and available to support planned property-backed financing. The notes carry a 10% coupon during the first 12 months and are convertible at $2.90 per share, while investors also received approximately 2.35 million warrants exercisable at $3.20. Interest expense increased to $344,000 in 2Q26 from $12,000 a year ago, reflecting the higher financing burden. Management does not currently plan an equity raise and continues to prioritize mortgage and equipment financing; successful execution of that plan would help limit incremental dilution as BRFH completes the Defiance build. Disclaimer: Exec Edge does not publish proprietary estimates, ratings, price targets, or investment recommendations. The valuation discussion below is illustrative only and is based on company filings, management commentary, and third-party data and estimates. It does not constitute a recommendation, price target, rating, or prediction of future pricing. Stock has reacted negatively to the latest earnings print, but our analysis suggests BRFH’s current valuation increasingly discounts the near-term operating pressure reflected in the guidance reset, while the medium to long-term opportunity from education growth and vertical integration remains intact. At $1.30 per share and an approximately $21 million market capitalization, BRFH trades at 0.93x 2026E P/Sales. The selloff reflects the slower manufacturing ramp and reduced 2026 outlook, while the longer-term education opportunity and strategic rationale for vertical integration remain intact. Importantly, the Street estimate sits slightly below the low end of management’s $23 to $26 million 2026 revenue guidance, suggesting current expectations are already relatively conservative. Delivery within the guidance range, particularly toward the upper end, could support upward estimate revisions and strengthen confidence in the medium to long-term growth and margin recovery trajectory. A return toward BRFH’s historical valuation range highlights meaningful rerating potential as execution improves. The stock has de-rated and currently trades well below its three-year peak of 4.5x NTM P/Sales. Applying a 3.0x P/Sales multiple, approximately one-third below the historical peak, to the $22.9 million 2026E Street revenue implies an illustrative market capitalization of approximately $68 million, or roughly $4.2 per share, while 2027E Street revenue of $29.2 million provides additional forward growth support. However, the path to rerating remains contingent on execution across key operating milestones, including education revenue growth through the 2026-27 school year, gross margin recovery, improved efficiency at the Arps facility, progress toward the 2H26 adjusted EBITDA target, and successful commissioning of the Defiance facility. Relative valuation has also become compelling, with BRFH trading at a greater than 40% discount to peers. BRFH’s 0.93x 2026E P/Sales multiple compares with a peer average of 1.58x, representing an approximately 41% discount. Applying the peer average to the $22.9 million 2026E Street revenue estimate sourced from TIKR implies an illustrative equity value of approximately $36 million, or roughly $2.2 per share. This framework assumes only convergence toward the peer average, with further rerating potential if BRFH delivers within management’s revenue guidance, demonstrates sequential margin improvement, and executes on the Defiance transition, supporting the medium to long-term growth and margin recovery thesis. Read Exec Edge’s Initiation on Barfresh Food Group Here Subscribe to our Weekly Newsletter to Receive All Research Contact: Executives-Edge.com [email protected] The post Barfresh Reports Topline Growth & Continued Education Recovery – Quarterly Update Report appeared first on ExecEdge.

The stock has not been priced this richly against its own sales at any point in a decade, and part of the earnings growth that price pays for comes from an exchange-rate swing rather than from the operation. Coca-Cola (KO) closed at $88.82 on Aug 18, 2026, effectively at its 52-week high after a 30.6% total return over the past year. Nothing in the operation is breaking, which is what makes the risk here hard to see. The price now pays for peak profitability, and the most recent step up in earnings growth came partly from outside the operation. The company's $50.1 billion of revenue over the trailing twelve months is priced at 7.6 times sales. That multiple has run between 4.3 and 7.1 over the past decade, so the stock is now above the top of its own ten-year range. The stretch is measured against its own history, not against any peer. A price set there is not asking the business to accelerate; it is asking it not to stumble. Net margin over the trailing twelve months is 28.6%, the highest in at least five years and well above its 24.9% three-year average. Management attributes the comparable operating margin expansion in Q2 2026 to underlying expansion and currency tailwinds together. The company's full-year 2026 guide carries an approximate 3-point currency tailwind inside comparable earnings per share growth of 9% to 10%. Foreign exchange ran the other way for years before it turned. Earnings growth built in the operation and earnings growth handed over by an exchange rate are not the same asset, a distinction the Trefis High Quality Portfolio makes when it looks for strong margins alongside sustainable revenue growth in its holdings. Worldwide unit case volume grew 5% in Q2 2026, and the company names what made the quarter run hot: an easier prior-year comparison, favorable weather in certain markets, and a FIFA World Cup activation that helped carry Trademark Coca-Cola to its strongest volume growth in 17 years, excluding the pandemic recovery. On a two-year average, that worldwide volume line runs 2%. Adding new drinkers costs something: comparable operating income in Asia Pacific declined in Q2 2026 even as volume grew across all of its operating units, and management puts that decline down to widening the consumer base across income levels, an effort that includes affordability initiatives and cold drink equipment. Volume built for the long term is being paid for out of segment profit. Management guides 2026 organic revenue growth to about 5%, below the 6% organic growth reported for Q2 2026, and says the second half of 2026 cycles a higher comparison, with six fewer days in the fourth quarter. The deceleration is scheduled, not the risk. What is unsettled is whether it arrives with mix improving or with more investment behind it. None of this describes a company in trouble; it describes a stock the market has barely marked down at any point in the past year, when the deepest peak-to-trough drop reached just 7.9%. How wide a range the options market is pricing over the next twelve months is the cheapest read on whether anyone else is worried yet. The risks here are not existential; they sit in one multiple, one margin cycle and one investment cycle, and a holder owns all three. Spreading that defensive intent across the Trefis High Quality Portfolio is a different exposure from paying the top of a decade-long range on sales for one franchise. That portfolio has a track record of outpacing the three major indices - the S&P 500, S&P Mid-cap, and Russell 2000.