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Vita Coco (NASDAQ:COCO) Stock, Option Chain

Vita Coco

The Vita Coco Co Inc is a plant-based functional hydration platform. Its products include Vita Coco Coconut Water, Private Label including coconut water and oil, and Other including Runa, Ever & Ever, and PWR LIFT product offerings, Vita Coco product extensions beyond coconut water, such as Vita Coco Sparkling, coconut milk products, and others. Geographical presence of the company is in United States, Canada, Europe, Middle East, Africa, and the Asia Pacific regions.

Earnings

News

Small Cap

Markets

Analyst Ratings

Trading Ideas

COCO

COTY

The Vita Coco Company, Inc. (NASDAQ: COCO) is slated to report second-quarter 2024 results on Jul 31, before market open. The company is likely to report top and bottom-line growth when it posts the quarterly results.

Vita Coco Company to Post Q2 Earnings: Things to Note

Movers

Intraday Update

ACHR

AGRI

ASPI

BDRX

BILI

CGBS

ERIC

EVGO

EYPT

FWRD

HOVR

IMMP

KZIA

LCFY

LCID

LIPO

NISN

PEGY

Qualigen Therapeutics, Inc. - Common Stock

QLGN

RNLX

SANW

SISI

SNTG

SXTC

TOYO

VALU

VRPX

VSTM

YGMZ

ZAPP

Why ASP Isotopes Shares Are Trading Lower By 9%? Here Are Other Stocks Moving In Friday&#39;s Mid-Day Session

Earnings Beats

JJSF

PepsiCo, Inc. (NASDAQ: PEP) has reported robust second-quarter 2024 results, wherein earnings surpassed the Zacks Consensus Estimate, while revenues lagged. However, the top and bottom lines improved year over year.

PepsiCo Q2 Earnings Beat, Soft QFNA Results Hurt Stock

The Vita Coco Company, Inc. - Common Stock

The Vita Coco Co Inc

Cocos-BCX

COCONALA INC by COCONALA INC.

Wells Fargo analyst Chris Carey maintains Vita Coco (NASDAQ:<a class="ticker" href="https://www.benzinga.com/stock/COCO#NASDAQ">COCO</a>) with a Overweight and raises the price target from $33 to $40.

Price Target

Wells Fargo Maintains Overweight on Vita Coco, Raises Price Target to $40

B of A Securities analyst Bryan Spillane maintains Vita Coco (NASDAQ:<a class="ticker" href="https://www.benzinga.com/stock/COCO#NASDAQ">COCO</a>) with a Neutral and raises the price target from $30 to $38.

B of A Securities Maintains Neutral on Vita Coco, Raises Price Target to $38

Craig-Hallum analyst Eric Des Lauriers maintains Vita Coco (NASDAQ:<a class="ticker" href="https://www.benzinga.com/stock/COCO#NASDAQ">COCO</a>) with a Buy and raises the price target from $33 to $36.

Craig-Hallum Maintains Buy on Vita Coco, Raises Price Target to $36

Guidance

Vita Coco Company Raises FY24 Net Sales Outlook From $500M - $510M To $505M - $515M, Est $505.92M

Vita Coco (NASDAQ:<a class="ticker" href="https://www.benzinga.com/stock/COCO#NASDAQ">COCO</a>) reported quarterly earnings of $0.32 per share which beat the analyst consensus estimate of $0.26 by 23.08 percent. This is a 23.08 percent increase over earnings of $0.26 per share from the same period last year. The company reported quarterly sales of $132.91 million which missed the analyst consensus estimate of $139.38 million by 4.65 percent. This is a 3.74 percent decrease over sales of $138.06 million the same period last year.

Earnings Misses

Vita Coco Q3 2024 GAAP EPS $0.32 Beats $0.26 Estimate, Sales $132.91M Miss $139.38M Estimate

UBER

Uber And Coco Announce Strategic Partnership To Launch Coco's Sidewalk Robots On Uber Eats

The Company is reaffirming its full year&nbsp;guidance:
<ul>
<li>Expect 2024 net sales to be between&nbsp;$500 million&nbsp;and&nbsp;$510 million, with projected&nbsp;Vita Coco&nbsp;Coconut Water and private label coconut water volume growth, being offset by expected decreases in private label coconut oil business and price/mix effects.</li>
<li>Full year gross margin expected to be between&nbsp;37%&nbsp;and&nbsp;39%, with recent increases on certain ocean freight routes expected to adversely affect gross margins in the second half. This impact is expected to be most severe in the&nbsp;fourth quarter.</li>
<li>SG&amp;A expenses expected to be approximately flat to up slightly versus 2023.</li>
<li>Forecasting Adjusted EBITDA in the range of&nbsp;$76 million&nbsp;to&nbsp;$82 million</li>
</ul>

The Vita Coco Expects 2024 Net Sales To Be Between $500M-$510M Vs. $509.64M Estimate

Vita Coco (NASDAQ:<a class="ticker" href="https://www.benzinga.com/stock/COCO#NASDAQ">COCO</a>) reported quarterly earnings of $0.32 per share which beat the analyst consensus estimate of $0.29 by 10.34 percent. This is a 3.23 percent increase over earnings of $0.31 per share from the same period last year. The company reported quarterly sales of $144.12 million which beat the analyst consensus estimate of $143.96 million by 0.11 percent. This is a 3.20 percent increase over sales of $139.65 million the same period last year.

Vita Coco Q2 EPS $0.32 Beats $0.29 Estimate, Sales $144.12M Beat $143.96M Estimate

The Vita Coco Company, Inc. (NASDAQ: <a class="ticker" href="https://www.benzinga.com/stock/coco#NASDAQ">COCO</a>) is slated to report second-quarter 2024 results on Jul 31, before market open. The company is likely to report top and bottom-line growth when it posts the quarterly results.
The Zacks Consensus Estimate for the company&#39;s earnings is pegged at 31 cents per share, which indicates an increase of 19.2% from the year-ago quarter&#39;s reported figure. The consensus mark has remained stable in the past 30 days.
For second-quarter revenues, the consensus mark is pegged at $143.5 million, indicating a 2.7% rise from the year-ago quarter&#39;s reported figure.
In the last reported quarter, the company delivered an earnings surprise of 26.3%. It delivered a trailing four-quarter average earnings surprise of 25.3%.
<h3>Key Factors to Note</h3>
Vita Coco Company&#39;s quarterly performance is expected to have benefited from its strength in brands and the solid execution of its strategic efforts. Its consistent focus on driving growth in the coconut water category and expanding its share in the category appears encouraging. Its flagship brand has been performing well for a while. Apart from experiencing solid branded retail growth, the company has been witnessing higher private label coconut water volumes.
In addition, Vita Coco Company&#39;s commercial initiatives related to the Vita Coco multi-packs, Vita Coco Farmers Organic and Vita Coco Juice are likely to have contributed to its performance. The company&#39;s focus on expanding consumption occasions of coconut water is likely to have driven the category&#39;s and the flagship Vita Coco Coconut Water brand&#39;s performance. All the aforementioned strengths, coupled with its focus on growing the core business and a solid international business, are likely to have bolstered the bottom and top-line performance.
On the flip side, a tough macroeconomic landscape, including uncertainty related to the operating environment, global economies and geopolitical issues, is a concern. The company has been witnessing higher SG&amp;A expenses for a while. Management, in its last earnings call, cited that the elevated certain ocean freight routes are anticipated to hurt the gross margin starting the second quarter and the impact is likely to have been severe in the impending quarter.
<h3>What the Zacks Model Unveils</h3>
Our proven model does not conclusively predict an earnings beat for Vita Coco Company this time around. The combination of a positive Earnings ESP and a Zacks Rank #1 (Strong Buy), 2 (Buy) or 3 (Hold) increases the odds of an earnings beat. But that&#39;s not the case here.
<div class="chart_embed">
<h3>Vita Coco Company, Inc. Price and EPS Surprise</h3>
<img alt="Vita Coco Company, Inc. Price and EPS Surprise" src="https://staticx-tuner.zacks.com/images/charts/96/1721912703.png" style="height:266px; width:537px" title="" />
Vita Coco Company, Inc. price-eps-surprise | Vita Coco Company, Inc. Quote
Vita Coco Company currently has an Earnings ESP of -3.85% and a Zacks Rank of 3.
</div>
<h3>Stocks With the Favorable Combination</h3>
Here are some companies, which according to our model, have the right combination of elements to beat on earnings this reporting cycle.
Coty (NYSE: <a class="ticker" href="https://www.benzinga.com/stock/coty#NYSE">COTY</a>) has an Earnings ESP of +22.73% and a Zacks Rank of 3 at present.
The company is expected to register top and bottom-line growth when it reports fourth-quarter fiscal 2024 numbers. The Zacks Consensus Estimate for COTY&#39;s quarterly earnings has remained unchanged in the past 30 days at 5 cents per share. The consensus mark for earnings indicates a 400% surge from the figure reported in the year-ago quarter.
The consensus estimate for quarterly revenues is pegged at $1.38 billion, which indicates a rise of 1.9% from the figure reported in the year-ago quarter. COTY delivered a trailing four-quarter average negative earnings surprise of 22.2%.
Clorox (NYSE: <a class="ticker" href="https://www.benzinga.com/stock/clx#NYSE">CLX</a>) currently has an Earnings ESP of +1.51% and a Zacks Rank of 3. The company is likely to register a top and bottom-line decline when it reports fourth-quarter fiscal 2024 numbers. The Zacks Consensus Estimate for Clorox&#39;s quarterly revenues is pegged at $1.97 billion, indicating a decline of 2.3% from the figure reported in the prior-year quarter. The consensus mark for earnings has risen a penny in the past seven days.
The consensus estimate for Clorox&#39;s quarterly earnings of $1.54 per share implies a decline of 7.8% from the year-ago quarter&#39;s levels. However, Clorox has a trailing four-quarter earnings surprise of 128.5%, on average.
Colgate (NYSE: <a class="ticker" href="https://www.benzinga.com/stock/cl#NYSE">CL</a>) currently has an Earnings ESP of +0.33% and a Zacks Rank of 3. The company is expected to register top and bottom-line growth when it reports second-quarter numbers. The Zacks Consensus Estimate for CL&#39;s quarterly revenues is pegged at $5 billion, which indicates growth of 4% from the prior-year quarter&#39;s reported figure.
The consensus estimate for quarterly earnings has remained unchanged in the past 30 days at 87 cents per share. The estimate indicates 13% growth from the year-ago reported quarter. CL delivered a trailing four-quarter average earnings surprise of 4.4%.
<a href="https://www.zacks.com/stock/news/2309146/vita-coco-company-coco-to-post-q2-earnings-things-to-note?cid=CS-BENZ-FT-analyst_blog|earnings_preview-2309146">To read this article on Zacks.com click here.</a>

Shares of ASP Isotopes Inc. (NASDAQ:<a class="ticker" href="https://www.benzinga.com/stock/ASPI#NASDAQ">ASPI</a>) fell during Friday's session after the company announced pricing of a $30 million public offering of 12 million <a href="https://www.benzinga.com/quote/ASPI/news">shares at $2.50 per share</a>.
ASP Isotopes shares fell 9.2% to $3.2308 on Friday.
Here are some other stocks moving in today&#8217;s mid-day session.
<h3 class="wp-block-heading">Gainers</h3>
<ul>
<li>Vicinity Motor Corp. (NASDAQ:<a class="ticker" href="https://www.benzinga.com/stock/VEV#NASDAQ">VEV</a>) shares jumped 133.2% to $0.7910 after the company announced CARB certification for the VMC 1200 class 3 electric truck.</li>
<li>Qualigen Therapeutics, Inc. (NASDAQ:<a class="ticker" href="https://www.benzinga.com/stock/QLGN#NASDAQ">QLGN</a>) shares rose 110% to $0.4335.</li>
<li>TOYO Co., Ltd (NASDAQ:<a class="ticker" href="https://www.benzinga.com/stock/TOYO#NASDAQ">TOYO</a>) climbed 63.4% to $2.5322.</li>
<li>Nisun International Enterprise Development Group Co., Ltd (NASDAQ:<a class="ticker" href="https://www.benzinga.com/stock/NISN#NASDAQ">NISN</a>) jumped 58% to $9.52 following FY23 earnings.</li>
<li>Sentage Holdings Inc. (NASDAQ:<a class="ticker" href="https://www.benzinga.com/stock/SNTG#NASDAQ">SNTG</a>) rose 43% to $3.29 after gaining around 5% on Thursday.</li>
<li>Inspire Veterinary Partners, Inc. (NASDAQ:<a class="ticker" href="https://www.benzinga.com/stock/IVP#NASDAQ">IVP</a>) gained 40.4% to $7.85.</li>
<li>Crown LNG Holdings Limited (NASDAQ:<a class="ticker" href="https://www.benzinga.com/stock/CGBS#NASDAQ">CGBS</a>) shares jumped 38.8% to $3.3452.</li>
<li>Zapp Electric Vehicles Group Limited (NASDAQ:<a class="ticker" href="https://www.benzinga.com/stock/ZAPP#NASDAQ">ZAPP</a>) gained 37.6% to $12.66 after the company announced that it entered into a new standby equity purchase agreement with an affiliate of Yorkville Advisors Global to start production and the commercial rollout of the i300 electric urban motorcycle in India.</li>
<li>Instil Bio, Inc. (NASDAQ:<a class="ticker" href="https://www.benzinga.com/stock/TIL#NASDAQ">TIL</a>) rose 25.7% to $12.19.</li>
<li>A2Z Smart Technologies Corp. (NASDAQ:<a class="ticker" href="https://www.benzinga.com/stock/AZ#NASDAQ">AZ</a>) gained 23.8% to $0.7899.</li>
<li>AgriFORCE Growing Systems Ltd. (NASDAQ:<a class="ticker" href="https://www.benzinga.com/stock/AGRI#NASDAQ">AGRI</a>) shares rose 19.3% to $0.0982 after gaining around 7% on Thursday.</li>
<li>S&amp;W Seed Company (NASDAQ:<a class="ticker" href="https://www.benzinga.com/stock/SANW#NASDAQ">SANW</a>) gained 18.3% to $0.3375.</li>
<li>Lucid Group, Inc. (NASDAQ:<a class="ticker" href="https://www.benzinga.com/stock/LCID#NASDAQ">LCID</a>) gained 17% to $3.9850. The stock may be up on continued strength after the company&#8217;s CEO recently said the co. will need to raise more money to grow, stating Saudi&#8217;s PIF is a &#8216;perfect&#8217; long-term partner on EVs.</li>
<li>China SXT Pharmaceuticals, Inc. (NASDAQ:<a class="ticker" href="https://www.benzinga.com/stock/SXTC#NASDAQ">SXTC</a>) rose 16% to $1.38 after jumping 10% on Thursday.</li>
<li>LL Flooring Holdings, Inc. (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/LL#NYSE">LL</a>) surged 16% to $0.8673.</li>
<li>Verastem, Inc. (NASDAQ:<a class="ticker" href="https://www.benzinga.com/stock/VSTM#NASDAQ">VSTM</a>) gained 15% to $3.4188. Verastem Oncology said first patient was dosed with GFH375/VS-7375, a KRAS G12D (ON/OFF) inhibitor, in a Phase 1/2 trial in China as a part of collaboration with GenFleet Therapeutics.</li>
<li>Immutep Limited (NASDAQ:<a class="ticker" href="https://www.benzinga.com/stock/IMMP#NASDAQ">IMMP</a>) shares climbed 14.4% to $2.30 after the company disclosed results for first-line treatment of head and neck squamous cell carcinoma patients with negative PD-L1 expression.</li>
<li>EVgo, Inc. (NASDAQ:<a class="ticker" href="https://www.benzinga.com/stock/EVGO#NASDAQ">EVGO</a>) gained 14.2% to $3.8506. Benchmark analyst Michael Legg maintained EVgo with a Buy and raised the price target from $3 to $5.</li>
<li>QuantumScape Corporation (NASDAQ:<a class="ticker" href="https://www.benzinga.com/stock/QS#NASDAQ">QS</a>) rose 12.2% to $7.92. QuantumScape recently announced it entered into an agreement with PowerCo to industrialize solid-state batteries.</li>
<li>Archer Aviation Inc. (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/ACHR#NYSE">ACHR</a>) surged 9.6% to $5.01. Archer Aviation announced it has signed a memorandum of understanding (MOU) with Southwest Airlines Company (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/LUV#NYSE">LUV</a>) to develop operational plans for electric air taxi networks utilizing Archer's eVTOL aircraft at California airports.</li>
<li>Forward Air Corporation (NASDAQ:<a class="ticker" href="https://www.benzinga.com/stock/FWRD#NASDAQ">FWRD</a>) rose 9.6% to $23.51.</li>
<li>EyePoint Pharmaceuticals, Inc. (NASDAQ:<a class="ticker" href="https://www.benzinga.com/stock/EYPT#NASDAQ">EYPT</a>) gained 8.7% to $10.77.</li>
<li>The Bank of New York Mellon Corporation (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/BK#NYSE">BK</a>) climbed 4.3% to $64.12 following better-than-expected quarterly financial results.</li>
<li>Telefonaktiebolaget LM Ericsson (NASDAQ:<a class="ticker" href="https://www.benzinga.com/stock/ERIC#NASDAQ">ERIC</a>) rose 3.8% to $6.63 after the company reported better-than-expected second-quarter sales and issued guidance.</li>
</ul>
<h3 class="wp-block-heading">Losers</h3>
<ul>
<li>Shineco, Inc. (NASDAQ:<a class="ticker" href="https://www.benzinga.com/stock/SISI#NASDAQ">SISI</a>) shares dipped 53% to $0.9987 after the company announced pricing of a $2 million underwritten public offering.</li>
<li>Kazia Therapeutics Limited (NASDAQ:<a class="ticker" href="https://www.benzinga.com/stock/KZIA#NASDAQ">KZIA</a>) fell 24.2% to $0.94. HC Wainwright &amp; Co. analyst Sean Lee reiterated Kazia Therapeutics with a Buy and maintained a $2 price target.</li>
<li>Cyngn Inc. (NASDAQ:<a class="ticker" href="https://www.benzinga.com/stock/CYN#NASDAQ">CYN</a>) fell 20.5% to $5.83 after surging 85% on Thursday.</li>
<li>Locafy Limited (NASDAQ:<a class="ticker" href="https://www.benzinga.com/stock/LCFY#NASDAQ">LCFY</a>) dipped 19.3% to $4.92.</li>
<li>Renalytix Plc (NASDAQ:<a class="ticker" href="https://www.benzinga.com/stock/RNLX#NASDAQ">RNLX</a>) declined 18.3% to $0.3035. Renalytix recently announced a collaboration with the Steno Diabetes Center, Copenhagen, to advance translation of precision medicine solutions for patients with Diabetes and Chronic Kidney Disease.</li>
<li>Pineapple Energy Inc. (NASDAQ:<a class="ticker" href="https://www.benzinga.com/stock/PEGY#NASDAQ">PEGY</a>) fell 15.5% to $2.04. Pineapple recently engaged Conduit Capital to provide structural internal support, staffing, and assistance with capital-raising activities.</li>
<li>Virpax Pharmaceuticals, Inc. (NASDAQ:<a class="ticker" href="https://www.benzinga.com/stock/VRPX#NASDAQ">VRPX</a>) dipped 14% to $1.43.</li>
<li>MingZhu Logistics Holdings Limited (NASDAQ:<a class="ticker" href="https://www.benzinga.com/stock/YGMZ#NASDAQ">YGMZ</a>) declined 13.5% to $1.41.</li>
<li>New Horizon Aircraft Ltd (NASDAQ:<a class="ticker" href="https://www.benzinga.com/stock/HOVR#NASDAQ">HOVR</a>) shares fell 9.4% to $0.5750 after gaining around 20% on Thursday.</li>
<li>Lipella Pharmaceuticals Inc (NASDAQ:<a class="ticker" href="https://www.benzinga.com/stock/LIPO#NASDAQ">LIPO</a>) fell 9.4% to $0.4810 after gaining over 9% on Thursday.</li>
<li>NANO Nuclear Energy Inc. (NASDAQ:<a class="ticker" href="https://www.benzinga.com/stock/NNE#NASDAQ">NNE</a>) shares declined 8.5% to $24.00 after gaining around 4% on Thursday.</li>
<li>Biodexa Pharmaceuticals Plc (NASDAQ:<a class="ticker" href="https://www.benzinga.com/stock/BDRX#NASDAQ">BDRX</a>) shares fell 7.7% to $0.9964. Biodexa Pharmaceuticals shares jumped around 52% on Thursday after the company reported 12-month Phase 2 trial results for eRapa in treating Familial Adenomatous Polyposis.</li>
<li>Value Line, Inc. (NASDAQ:<a class="ticker" href="https://www.benzinga.com/stock/VALU#NASDAQ">VALU</a>) dipped 7.4% to $40.75.</li>
<li>Wells Fargo &amp; Company (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/WFC#NYSE">WFC</a>) fell 6.8% to $56.07 after the company posted second-quarter results.</li>
<li>The Vita Coco Company, Inc. (NASDAQ:<a class="ticker" href="https://www.benzinga.com/stock/COCO#NASDAQ">COCO</a>) declined 6.3% to $28.49. Piper Sandler analyst Michael Lavery downgraded Vita Coco from Overweight to Neutral and lowered the price target from $29 to $28.</li>
<li>Bilibili Inc. (NASDAQ:<a class="ticker" href="https://www.benzinga.com/stock/BILI#NASDAQ">BILI</a>) fell 5.5% to $16.65.</li>
</ul>
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</ul>

Why ASP Isotopes Shares Are Trading Lower By 9%? Here Are Other Stocks Moving In Friday's Mid-Day Session

Piper Sandler analyst Michael Lavery downgrades Vita Coco (NASDAQ:<a class="ticker" href="https://www.benzinga.com/stock/COCO#NASDAQ">COCO</a>) from Overweight to Neutral and lowers the price target from $29 to $28.

Downgrades

Piper Sandler Downgrades Vita Coco to Neutral, Lowers Price Target to $28

PepsiCo, Inc. (NASDAQ: <a class="ticker" href="https://www.benzinga.com/stock/pep#NASDAQ">PEP</a>) has reported robust second-quarter 2024 results, wherein earnings surpassed the Zacks Consensus Estimate, while revenues lagged. However, the top and bottom lines improved year over year. The company&#39;s results have mainly been aided by improvements in its international business, which delivered significant volume growth and organic revenue growth of 5.5% year over year. The international business also reported 10% core operating profit growth and strong core operating margin expansion.
The results also reflect gains from strength and resilience in its categories, diversified portfolio, modernized supply chain, improved digital capabilities, flexible go-to-market distribution systems and robust consumer demand trends.
Shares of PepsiCo declined 1.9% in the pre-market session on Jul 11, as results have continued to be impacted by QFNA&#39;s recall-related headwinds and soft performance at the North America convenient foods businesses. Shares of the Zacks Rank #3 (Hold) company have declined 2.7% in the past three months against the industry&#39;s 2.6% growth.
<img alt="Zacks Investment Research" src="https://staticx-tuner.zacks.com/images/articles/charts/bd/71092.jpg?v=1128511273" />
Image Source: Zacks Investment Research
<h3>Quarter in Detail</h3>
PepsiCo&#39;s second-quarter core EPS of $2.28 beat the Zacks Consensus Estimate of $2.15 and increased 9% year over year. In constant currency, core earnings improved 10% from the year-ago period. The company&#39;s reported EPS of $2.23 rose 13% year over year in the quarter. Foreign currency impacted EPS by 1%.
Net revenues of $22.5 million rose 0.8% year over year but missed the Zacks Consensus Estimate of $22.6 billion. Revenues were negatively impacted by subdued category demand within its North America convenient foods businesses. Unit volume was down 2% for the convenient food business and was flat for the beverage business. Foreign currency impacted revenues by 1%.
On an organic basis, revenues grew 1.9% year over year, significantly below organic revenue growth of 13% in second-quarter 2023. The variance mainly resulted from a soft QFNA performance, which was impacted by certain product recalls. The QFNA segment revenues reduced organic revenue growth by 60 basis points (bps) in second-quarter 2024.
<div class="chart_embed">
<h3>PepsiCo, Inc. Price, Consensus and EPS Surprise</h3>
<img alt="PepsiCo, Inc. Price, Consensus and EPS Surprise" src="https://staticx-tuner.zacks.com/images/charts/a5/1720704535.png" style="height:282px; width:620px" title="" />
PepsiCo, Inc. price-consensus-eps-surprise-chart | PepsiCo, Inc. Quote
The company&#39;s consolidated organic volume was down 3%, while effective net pricing improved 5% in the second quarter. Pricing gains were driven by strong realized prices across all segments, except for QFNA.
Our model predicted year-over-year organic revenue growth of 2.8% for the second quarter, with a 4.5% gain from price/mix and a 1.7% decline in volume.
On a consolidated basis, the reported gross profit increased 3.1% year over year to $12.58 billion. The core gross profit rose 3% year over year to $12.57 million. The reported gross margin expanded 126 bps, whereas the core gross margin expanded by 120 bps.
We anticipated the core gross margin to expand 20 bps year over year to 54.9% in the second quarter. In dollar terms, core gross profit was expected to increase 2% year over year.
The company reported an operating income of $4.05 billion, which rose 10.6% year over year. The core operating income grew 6.8% year over year to $4.12 billion. The core constant-currency operating income also improved 7% year over year. The reported operating margin expanded 160 bps from the year-ago quarter. Meanwhile, the core operating margin expanded 103 bps, driven by holistic productivity initiatives, offset by planned business investments.
Our model predicted core SG&amp;A expenses of $8.6 billion, which indicated year-over-year growth of 2.8%. As a percentage of sales, core SG&amp;A expenses were anticipated to be 37.9%, suggesting a 50-bps rise from the prior-year quarter.
We expected a core operating margin of 17.1%, implying a 20-bps decline from the year-ago quarter&#39;s actual.
</div>
<h3>Segmental Details</h3>
The company witnessed revenue growth on a reported basis across most of the operating segments, except for QFNA, FLNA and APAC. Revenues in the QFNA segment were impacted by certain product recalls and tough revenue growth comparisons with the prior year. FLNA revenues were partly marred by subdued category demand in the convenient foods business.
Revenues on a reported basis improved 1% year over year in PBNA, 7% in Latin America, 2.5% in Europe, and 2% in the AMESA segment. However, reported revenues declined 0.5% at FLNA, 18% at QFNA and 2% at the APAC segment.
PEP&#39;s organic revenues improved across all operating segments, except for QFNA. Organic revenues were flat for FLNA, and rose 1% for PBNA, 2% for Latin America, 7% for Europe, 12% for AMESA and 1% for the APAC segment. However, organic revenues declined 18% for the QFNA segment.
<h3>Financials</h3>
The company ended second-quarter 2024 with cash and cash equivalents of $6.4 billion, long-term debt of $36.6 billion, and shareholders&#39; equity (excluding non-controlling interest) of $19.4 billion.
Net cash used in operating activities was $1.3 billion as of Jun 15, 2024, compared with $2 billion as of Jun 17, 2023.
<h3>Outlook</h3>
PepsiCo has revised its view for 2024. The company expects year-over-year organic revenue growth of 4% for 2024, compared with the prior view of at least 4%. It anticipates core constant-currency EPS growth of at least 8% from the year-ago period&#39;s reported figure.
Based on the current rates, PEP expects currency headwinds to hurt revenues and the core EPS by 1 percentage point in 2024. The company expects a core effective tax rate of 20% for 2024.
Given the above assumption, PepsiCo expects a core EPS of at least $8.15 for 2024. This suggests a 7% increase from the core EPS of $7.62 reported in 2023.
PepsiCo has been committed to rewarding shareholders through dividends and share buybacks. It expects to return a value worth $8.2 billion in 2024, including $7.2 billion of dividends. Additionally, the company plans to repurchase shares worth $1 billion in 2024.
<h3>Don&#39;t Miss These Better-Ranked Stocks</h3>
We have highlighted three better-ranked stocks from the Consumer Staple sector, namely Vita Coco Company (NASDAQ: <a class="ticker" href="https://www.benzinga.com/stock/coco#NASDAQ">COCO</a>), Coca-Cola FEMSA (NYSE: <a class="ticker" href="https://www.benzinga.com/stock/kof#NYSE">KOF</a>) and J &amp; J Snack Foods (NASDAQ: <a class="ticker" href="https://www.benzinga.com/stock/jjsf#NASDAQ">JJSF</a>).
Vita Coco currently flaunts a Zacks Rank #1 (Strong Buy). COCO shares have rallied 20.4% in the past three months. The company has a trailing four-quarter earnings surprise of 25.3%, on average.
The Zacks Consensus Estimate for Vita Coco&#39;s current financial-year sales and earnings suggests growth of 3.5% and 40.5%, respectively, from the year-ago period&#39;s reported figures.
Coca-Cola FEMSA currently has a Zacks Rank #2 (Buy). KOF shares have declined 12.3% in the past three months.
The Zacks Consensus Estimate for Coca-Cola FEMSA&#39;s current financial-year sales and EPS suggests growth of 11.9% and 26.7%, respectively, from the year-ago period&#39;s reported figures. KOF has a trailing four-quarter negative earnings surprise of 1.3%, on average.
J &amp; J Snack currently carries a Zacks Rank #2. JJSF shares have gained 24.2% in the past three months. JJSF has a trailing four-quarter earnings surprise of 5.7%, on average.
The Zacks Consensus Estimate for J &amp; J Snack&#39;s current financial-year sales and earnings suggests growth of 1.6% and 17.6%, respectively, from the year-ago period&#39;s reported figures.
<a href="https://www.zacks.com/stock/news/2300177/pepsico-pep-q2-earnings-beat-soft-qfna-results-hurt-stock?cid=CS-BENZ-FT-analyst_blog|earnings_article-2300177">To read this article on Zacks.com click here.</a>

B of A Securities analyst Bryan Spillane maintains Vita Coco (NASDAQ:<a class="ticker" href="https://www.benzinga.com/stock/COCO#NASDAQ">COCO</a>) with a Neutral and raises the price target from $27 to $30.

B of A Securities Maintains Neutral on Vita Coco, Raises Price Target to $30

Wells Fargo analyst Chris Carey maintains Vita Coco (NASDAQ:<a class="ticker" href="https://www.benzinga.com/stock/COCO#NASDAQ">COCO</a>) with a Overweight and raises the price target from $30 to $33.

Wells Fargo Maintains Overweight on Vita Coco, Raises Price Target to $33

Newell Brands Inc. (NASDAQ: <a class="ticker" href="https://www.benzinga.com/stock/nwl#NASDAQ">NWL</a>) has been witnessing excellent progress on its five major operational and financial priorities. In the recent quarter, the company successfully operationalized its new operating model and continues to execute its strategy, which focuses on investing in innovation, brand building, and go-to-market excellence in its largest and most profitable brands and markets. 
NWL is gaining from its productivity and pricing actions, which aided margin expansions in first-quarter 2024. It witnessed normalized gross margin expansion of 410 basis points (bps) year over year to 31.2%, marking the third consecutive quarter of expansion. The normalized operating margin increased 220 bps year over year to 4.6%, while normalized EBITDA rose more than 30%. 
The company has been experiencing stronger cross-functional partnerships leading to more agile and efficient decision-making, and streamlined ways of working. These enhancements are essential for NWL&#39;s transition into a high-performing, innovative and inclusive organization.
<h3>Let&#39;s Dig Deeper</h3>
Newell Brands is actively boosting its productivity and efficiency through productivity plans, automation initiatives and the full implementation of Project Ovid. Additionally, it is exploring opportunities to optimize the category mix within each business unit. Its Project Phoenix, which aims at reducing overhead costs and streamlining the operating model, bodes well. 
With a focus on reducing overhead costs, streamlining the operating model and centralizing supply-chain functions, Newell Brands aims to increase efficiencies. The company has initiated Project Phoenix to simplify operations, strengthen its foundation and optimize costs. 
Management is making significant strides toward strengthening its front-end commercial capabilities and bringing consumer-driven innovation to market. Additionally, the new business development team is gaining momentum and the international business is surpassing North America in performance. 
This business development team, launched in the United States last year, is successfully increasing distribution by attracting new customers and diversifying product offerings within existing customer relationships. The distribution gains were noted across several brands like Groco, Rubbermaid Brilliance, Calphalon, Commercial cleaning products, NUK Baby Care and many more.
<h3>Roadblocks to Address</h3>
NWL has been facing a tough macroeconomic environment, characterized by core inflation, which resulted in subdued demand for discretionary and durable goods. The company has been experiencing a slowdown in retail sales amid rising inflation in essential items such as food, energy and housing. These economic conditions, coupled with the rollback of government stimulus spending, are expected to negatively impact discretionary purchases. 
In first-quarter 2024, these trends led to a year-over-year net sales decline of 8.4%. Also, normalization in category trends, tight inventory management and the unfavorable impact of the bankruptcy of Bed Bath &amp; Beyond acted as deterrents. 
Moreover, there is an ongoing concern about the normalization of demand in home-based categories, which have been under pressure. Adverse foreign currency translations, particularly due to hyperinflation in Argentina, are further challenging the company&#39;s performance. This environment underscores the complexity and volatility NWL must navigate. These hurdles cannot be ignored in the near term. 
The Zacks Consensus estimate for current fiscal-year earnings per share indicates a decline of 24% from the year-earlier levels to 60 cents. Apart from this, this Zacks Rank #3 (Hold) stock has fallen 23.2% in the past six months compared with the industry&#39;s decline of 0.3%.
<img alt="Zacks Investment Research" src="https://staticx-tuner.zacks.com/images/articles/charts/e8/69482.jpg?v=1279201574" /> 
Image Source: Zacks Investment Research
<h3>3 Picks You Can&#39;t Miss</h3>
Here, we have highlighted three better-ranked stocks, namely, Vital Farms, Vita Coco Company (NASDAQ: <a class="ticker" href="https://www.benzinga.com/stock/coco#NASDAQ">COCO</a>) and Ollie&#39;s Bargain Outlet (NASDAQ: <a class="ticker" href="https://www.benzinga.com/stock/olli#NASDAQ">OLLI</a>). 
Vital Farms offers a range of produced pasture-raised foods. It currently sports a Zacks Rank #1 (Strong Buy). VITL has a trailing four-quarter average earnings surprise of 102.1%.
The Zacks Consensus Estimate for Vital Farms&#39; current financial-year sales and earnings suggests growth of 22.5% and 59.3%, respectively, from the year-ago reported numbers. 
Vita Coco, which develops, markets and distributes coconut water products, currently flaunts a Zacks Rank #1. COCO has a trailing four-quarter earnings surprise of 25.3%, on average. 
The Zacks Consensus Estimate for Vita Coco&#39;s current financial-year sales and earnings implies an improvement of 3.5% and 40.5%, respectively, from the prior-year actuals. 
Ollie&#39;s Bargain, the extreme-value retailer of brand-name merchandise, currently carries a Zacks Rank #2 (Buy). OLLI has a trailing four-quarter earnings surprise of 10.4%, on average. 
The Zacks Consensus Estimate for Ollie&#39;s Bargain&#39;s current financial-year sales and earnings indicates a rise of around 7.9% and 11.7%, respectively, from the year-earlier levels.
<a href="https://www.zacks.com/stock/news/2292992/can-newell-brands-nwl-strategic-initiatives-boost-the-stock?cid=CS-BENZ-FT-analyst_blog|rank_focused-2292992">To read this article on Zacks.com click here.</a>

OLLI

Can Newell Brands' Strategic Initiatives Boost the Stock?

Archer Daniels Midland Company (NYSE: <a class="ticker" href="https://www.benzinga.com/stock/adm#NYSE">ADM</a>) continues to be troubled by the sluggishness across its Nutrition unit. This led to a year-over-year segment revenue dip of 0.9% in first-quarter 2024, following a year-over-year decline of 6.7% in the preceding quarter. 
Adjusted operating profit for the segment also fell by a significant 39% compared with the same period last year. Within this segment, human nutrition reported an operating profit of $76 million, down $62 million from the prior year due to unplanned downtime at Decatur East and market normalization in restaurants, thus impacting margins. 
Management anticipates reporting a decline in the nutrition segment from the year-ago levels for the second-quarter 2024, primarily due to challenges in specialty ingredients. However, it expects to witness another quarter of sequential improvement owing to progress in demand fulfillment. 
Shares of the Zacks Rank #3 (Hold) company have lost 1.5% in the past three months compared with the industry&#39;s decline of 9.6%.
<img alt="Zacks Investment Research" src="https://staticx-tuner.zacks.com/images/articles/charts/1c/68977.jpg?v=1275262016" /> 
Image Source: Zacks Investment Research
<h3>Do Strategic Initiatives Hold Potential?</h3>
Archer Daniels has been making substantial strides in its three strategic pillars: optimize, drive and growth. It is focused on expanding the alternative protein production in Decatur, IL, and starch production in Marshall, MN. The company completed the expansion of its alternative protein facilities in Serbia, which is a significant milestone. 
Management is implementing measures to enhance productivity and efficiency across its operations. To achieve operational excellence, ADM is restructuring its organization. This includes setting new goals and adapting its operations to be more efficient and responsive. 
Further, the company is actively looking to increase its presence in the fast-growing alternative protein market. A key development in its growth strategy is the agreement with Benson Hill, which involves processing and commercializing a range of proprietary ingredients made from ultra-high protein soybeans. 
ADM&#39;s strategic roadmap for 2024 centers on three pivotal goals, which include managing through economic cycles, achieving nutrition recovery and optimizing shareholder returns. The progress in these areas during the first quarter reflects ADM&#39;s robust strategy, showcasing the company&#39;s resilience in turbulent market conditions. 
Archer Daniels is also focused on productivity and innovation, and aligning with trends in food security, health and wellbeing. This positions the company for sustainable long-term profit growth. In the first quarter of 2024, ADM has made substantial progress across key initiatives. Production volumes and utilization at the Green Bison joint venture with Marathon have notably increased, with plans to achieve sustained full run rates by the fall harvest. 
Moreover, its carbohydrate solutions business has achieved nearly 10% volume growth in bio solutions, alongside effective management of core business demands. ADM has exceeded its 2023 target of 2 million acres in regenerative agriculture programs and has raised its 2025 acreage goal to 5 million acres, underscoring its commitment to sustainable practices. The ongoing drive for excellence program has generated nearly 1,200 validated proposals, driving operational efficiencies and cost savings.
<h3>Final Thoughts</h3>
With its strong strategic initiatives, expansion plans and commitment to innovation, Archer Daniels has positioned itself for continued success. However, investors should be mindful of potential risks, such as the challenging U.S. consumer environment and increased expenses,&nbsp; which could impact ADM&#39;s performance.
<h3>3 Picks You Can&#39;t Miss</h3>
Here, we have highlighted three better-ranked stocks, namely, Vital Farms (NASDAQ: <a class="ticker" href="https://www.benzinga.com/stock/vitl#NASDAQ">VITL</a>), Vita Coco Company (NASDAQ: <a class="ticker" href="https://www.benzinga.com/stock/coco#NASDAQ">COCO</a>) and Ollie&#39;s Bargain Outlet (NASDAQ: <a class="ticker" href="https://www.benzinga.com/stock/olli#NASDAQ">OLLI</a>). 
Vital Farms offers a range of produced pasture-raised foods. It currently sports a Zacks Rank #1 (Strong Buy). VITL has a trailing four-quarter average earnings surprise of 102.1%. 
The Zacks Consensus Estimate for Vital Farms&#39; current financial-year sales and earnings suggests growth of 22.5% and 59.3%, respectively, from the year-ago reported numbers. 
Vita Coco, which develops, markets and distributes coconut water products, currently flaunts a Zacks Rank #1. COCO has a trailing four-quarter earnings surprise of 25.3%, on average. 
The Zacks Consensus Estimate for Vita Coco&#39;s current financial-year sales and earnings implies an improvement of 3.5% and 40.5%, respectively, from the prior-year actuals. 
Ollie&#39;s Bargain, the extreme-value retailer of brand-name merchandise, currently carries a Zacks Rank #2 (Buy). OLLI has a trailing four-quarter earnings surprise of 10.4%, on average. 
The Zacks Consensus Estimate for Ollie&#39;s Bargain&#39;s current financial-year sales and earnings indicates a rise of around 7.9% and 13.1%, respectively, from the year-earlier levels.
<a href="https://www.zacks.com/stock/news/2289362/can-archer-daniels-adm-strategic-endeavors-aid-the-stock?cid=CS-BENZ-FT-analyst_blog|rank_focused-2289362">To read this article on Zacks.com click here.</a>

VITL

Can Archer Daniels' Strategic Endeavors Aid the Stock?

The Boston Beer Company, Inc. (NYSE: <a class="ticker" href="https://www.benzinga.com/stock/sam#NYSE">SAM</a>) has retained its niche in the market, driven by its progress on its Beyond Beer strategy, the premiumization of the beer industry and robust trends for its twisted tea brand. Additionally, the company&#39;s innovation, intensified attention to pricing and product portfolio expansion efforts bode well. 
SAM is on track with the expansion of its Beyond Beer category, which includes exploring categories other than beer. Beyond Beer is growing faster than the traditional beer market, and the company expects this trend to continue for several years. SAM&#39;s advancement in the non-beer categories, including ciders and hard seltzer, as well as brand-building efforts, is expected to fortify its position in the market. 
Boston Beer is on track with growth of its Beyond Beer category, wherein it currently holds the second position. The company expects the trend to continue for the next several years. 
However, weak depletions, along with continued challenges in the hard seltzer category, acted as deterrents. The slowed consumer demand for hard seltzers has been hurting the company&#39;s performance, with marked declines noted for the Truly brand in recent quarters. 
Consequently, shares of the Zacks Rank #3 (Hold) company have lost 17.2% in the year-to-date period compared with the industry&#39;s decline of 11.5%. SAM also compared unfavorably with the Consumer Staples sector&#39;s growth of 0.7% and the S&amp;P 500&#39;s improvement of 7.6% in a year.
<img alt="Zacks Investment Research" src="https://staticx-tuner.zacks.com/images/articles/charts/5b/68839.jpg?v=1409913459" /> 
Image Source: Zacks Investment Research
<h3>Other Strategies in Focus</h3>
Boston Beer&#39;s pricing, product innovation and growth of non-beer categories alongside brand development efforts bode well. The company has been benefiting from strong price realization and procurement savings, which more than offset increased inflationary costs. 
SAM&#39;s focus on innovation to revive the Truly brand and expand Twisted Tea&#39;s potential bodes well. Boston Beer is keen on bringing excitement to the Truly brand&#39;s core flavors through innovation. The firm expects to improve the Truly brand&#39;s trends through a renewed focus on core business, smart brand innovation, and strong distributor support and retail execution. The company&#39;s Truly flavored bottle Vodka and Truly Vodka Seltzer have been performing well. 
Twisted Tea is the brand that drove most growth for Boston Beer in first-quarter 2024. Being one of the fastest-growing brands, Twisted Tea rose in the double-digits. Improved geographic, channel and package distribution; effective brand-building campaigns; increased media investment; and optimized packaging design have been aiding the performance of the Twisted Tea brand. 
The growing awareness of the Twisted Tea brand and household penetration also bode well. The company further expanded its light portfolio offerings with a new variety pack available in select highly developed markets and has received positive feedback for the same. 
In recent years, Boston Beer has implemented strategic pricing actions that have boosted its position in the competitive landscape. Craft beer enthusiasts are known for their willingness to pay a premium for unique and high-quality brews. SAM has leveraged this consumer mindset by strategically pricing its products to reflect the craft beer experience it offers. 
The company is optimistic about continued pricing gains in the near term. It estimates price increases of 1-2% for 2024.
<h3>Major Setbacks</h3>
Boston Beer&#39;s first-quarter 2024 results reflected continued softness in depletions and challenges in the hard seltzer category. The hard seltzer category&#39;s decelerating trend has mainly been attributed to the loss of novelty among consumers due to the entry of several beyond beer products in the marketplace. The decline has also resulted from the ongoing dismal macroeconomic environment, which has caused a volume shift from hard seltzers to premium light beers due to their lower pricing. The slowed hard seltzer sales continued to impact the company&#39;s Truly hard seltzer performance. 
In 2024, the hard-seltzer category is likely to remain under pressure and management anticipates category volume declines in the low teens. Depletions and shipments are expected between a low-single-digit decline and a low-single-digit increase for 2024.
<h3>Key Picks</h3>
We have highlighted three better-ranked stocks from the Consumer Staple sector, namely The Vita Coco Company Inc. (NASDAQ: <a class="ticker" href="https://www.benzinga.com/stock/coco#NASDAQ">COCO</a>), Vital Farms (NASDAQ: <a class="ticker" href="https://www.benzinga.com/stock/vitl#NASDAQ">VITL</a>) and PepsiCo Inc. (NASDAQ: <a class="ticker" href="https://www.benzinga.com/stock/pep#NASDAQ">PEP</a>). 
Vita Coco, a producer and marketer of coconut water products under the Vita Coco brand name, currently flaunts a Zacks Rank of 1 (Strong Buy). COCO has a trailing four-quarter earnings surprise of 25.3%, on average. 
The Zacks Consensus Estimate for COCO&#39;s current financial-year sales and earnings suggests growth of 3.5% and 40.5%, respectively, from the year-ago reported figures. 
Vital Farms offers a range of produced pasture-raised foods. VITL presently sports a Zacks Rank of 1. It has a trailing four-quarter earnings surprise of 102.1%, on average. 
The consensus estimate for Vital Farms&#39; current financial year&#39;s sales and earnings per share indicates growth of 22.5% and 59.3%, respectively, from the year-ago reported figures. 
PepsiCo, a leading global food and beverage company, currently carries a Zacks Rank #2 (Buy). PEP has a trailing four-quarter earnings surprise of 5.1%, on average. 
The Zacks Consensus Estimate for PEP&#39;s current financial-year sales and earnings indicates growth of 3.4% and 7.1%, respectively, from the year-earlier actuals.
<a href="https://www.zacks.com/stock/news/2288642/can-boston-beer-s-sam-beyond-beer-expansion-aid-growth?cid=CS-BENZ-FT-analyst_blog|rank_focused-2288642">To read this article on Zacks.com click here.</a>

Can Boston Beer's Beyond Beer Expansion Aid Growth?

Anheuser-Busch InBev SA/NV (NYSE: <a class="ticker" href="https://www.benzinga.com/stock/bud#NYSE">BUD</a>), alias AB InBev, has been benefiting from its unique commercial strategy, strong brand portfolio and investments in operational excellence. Continued business momentum due to relentless execution, investment in its brands and accelerated digital transformation have been the key drivers. 
Additionally, the company looks well-poised to gain from the expansion of the Beyond Beer portfolio and investments in B2B platforms, e-commerce and digital marketing in the near term. The premiumization of the beer industry has been a key growth opportunity for AB InBev. These have been aiding the company&#39;s top line over the past few quarters. 
However, BUD has been witnessing higher costs, owing to commodity cost inflation, increased supply-chain costs in some markets, investments in business and elevated operating costs. These have been weighing on the company&#39;s bottom-line results. 
The Zacks Consensus Estimate for AB InBev&#39;s 2024 sales and earnings per share suggests growth of 3.7% and 12.1% year over year, respectively, from the year-ago period&#39;s reported numbers. 
The Zacks Rank #3 (Hold) stock has gained 8.4% in the past year against the industry&#39;s growth of 15.7%. The Consumer Staple sector has declined 6.1% in the same period.
<img alt="Zacks Investment Research" src="https://staticx-tuner.zacks.com/images/articles/charts/4b/68765.jpg?v=1874434217" /> 
Image Source: Zacks Investment Research
<h3>What Places BUD Well?</h3>
AB InBev witnesses positive business momentum on pricing actions, ongoing premiumization and other revenue-management initiatives. Driven by these, the company registered organic revenue growth of 2.6% in first-quarter 2024. Robust revenue per hectoliter (hl) growth and revenue growth in 75% of its markets were the key drivers. Revenues also benefited from its diversified global footprint and the continued momentum of its megabrands, which collectively advanced 6.7% year over year. 
The premiumization of the beer industry has been a key growth opportunity for AB InBev. The company has been investing to develop a diverse portfolio of global, international, and crafts and specialty premium brands in its markets. Apart from the premium brands, its global brands lead the way in premiumization. 
Ab InBev&#39;s above-core portfolio has been performing well for a while now. Revenues for its above core beer portfolio grew in the low-single digits in the first quarter, driven by strength in global brands and double-digit growth of other local megabrands like Leffe in Europe and Spaten in Brazil. The company&#39;s global brands&#39; first-quarter revenues grew 5.2% year over year outside their home markets, led by Corona, which improved 15.5%. 
AB InBev has been investing in new capabilities for several years to better connect with customers and consumers. It has been rapidly growing its digital platform and leveraging technology, such as B2B sales and other e-commerce platforms, including BEES and Z&eacute; Delivery. The company is witnessing an acceleration in the B2B platforms, e-commerce and digital marketing trends, which has been aiding growth in the past few months. BUD&#39;s digital transformation initiatives have been on track, with B2B digital platforms contributing about 70% to its revenues in the first quarter. 
AB InBev is steadfastly growing its Beyond Beer portfolio, including products like ready-to-drink beverages like Canned Wine and Canned Cocktails, Hard Seltzers, Cider and Flavored Malt Beverages. The Beyond Beer trend is gaining popularity due to the rise in demand for low-alcoholic or non-alcoholic drinks. The company has been focused on expanding its Beyond Beer portfolio, which has also been aiding the top line.
<h3>Headwinds in the Path</h3>
BUD has been witnessing elevated costs from the high commodity cost environment and investments to support long-term growth. 
In first-quarter 2024, the cost of sales increased 2.1% on a reported basis and 2.5% on an organic basis to $6.7 billion. The increase mainly resulted from commodity cost inflation and higher supply-chain costs in some markets, offset by improved pricing. SG&amp;A expenses rose 2.1% year over year to $4.4 billion and increased 1.4% on an organic basis, mainly reflecting higher investments in business and elevated operating costs.
<h3>Stocks to Consider</h3>
We have highlighted three better-ranked stocks from the Consumer Staple sector, namely The Vita Coco Company Inc. (NASDAQ: <a class="ticker" href="https://www.benzinga.com/stock/coco#NASDAQ">COCO</a>), Vital Farms (NASDAQ: <a class="ticker" href="https://www.benzinga.com/stock/vitl#NASDAQ">VITL</a>) and PepsiCo Inc. (NASDAQ: <a class="ticker" href="https://www.benzinga.com/stock/pep#NASDAQ">PEP</a>). 
Vita Coco, a producer and marketer of coconut water products under the Vita Coco brand name, currently flaunts a Zacks Rank of 1 (Strong Buy). COCO has a trailing four-quarter earnings surprise of 25.3%, on average. 
The Zacks Consensus Estimate for COCO&#39;s current financial-year sales and earnings suggests growth of 3.5% and 40.5%, respectively, from the year-ago reported figures. 
Vital Farms offers a range of produced pasture-raised foods. VITL presently sports a Zacks Rank of 1. It has a trailing four-quarter earnings surprise of 102.1%, on average. 
The consensus estimate for Vital Farms&#39; current financial year&#39;s sales and earnings per share indicates growth of 22.5% and 59.3%, respectively, from the year-ago reported figures. 
PepsiCo, a leading global food and beverage company, currently carries a Zacks Rank #2 (Buy). PEP has a trailing four-quarter earnings surprise of 5.1%, on average. 
The Zacks Consensus Estimate for PEP&#39;s current financial-year sales and earnings indicates growth of 3.4% and 7.1%, respectively, from the year-earlier actuals.
<a href="https://www.zacks.com/stock/news/2288020/ab-inbev-bud-stays-on-growth-track-on-ongoing-initiatives?cid=CS-BENZ-FT-analyst_blog|rank_focused-2288020">To read this article on Zacks.com click here.</a>

AB InBev Stays on Growth Track on Ongoing Initiatives

Market volatility is likely to persist, with Federal Reserve officials projecting only a single rate cut this year despite the recent inflation report indicating easing price pressures. As a result, volatility and uncertainty may continue in the stock market, emphasizing the importance of assembling a portfolio consisting of low-beta stocks. These securities are expected to deliver strong returns while offering protection against unpredictable market conditions.
In this regard, stocks like The Vita Coco Company, Inc. (NASDAQ: <a class="ticker" href="https://www.benzinga.com/stock/coco#NASDAQ">COCO</a>), Seanergy Maritime Holdings Corp. (NASDAQ: <a class="ticker" href="https://www.benzinga.com/stock/ship#NASDAQ">SHIP</a>), Arcos Dorados Holdings Inc. (NYSE: <a class="ticker" href="https://www.benzinga.com/stock/arco#NYSE">ARCO</a>) and Palomar Holdings Inc (NASDAQ: <a class="ticker" href="https://www.benzinga.com/stock/plmr#NASDAQ">PLMR</a>) are worth betting on.
<h3>Understanding Beta</h3>
Beta measures the volatility or risk of a particular asset compared to the market. In other words, beta measures the extent of a security&#39;s price movement relative to the market. In this article, we are considering the S&amp;P 500 as the market.
If a stock has a beta of 1, then the price of the stock will move with the market. So, the stock is more volatile than the market if its beta is more than 1. In the same way, the stock is not as volatile as the market if its beta is less than 1.
For example, if the market offers a return of 20%, a stock with a beta of 3 will return 60%, which is overwhelming. Similarly, when the market slips 20%, the stock will sink 60%, which is devastating.
<h3>Screening Criteria:</h3>
We have taken&nbsp;a beta between 0 and 0.6&nbsp;as our prime criterion for screening stocks that are less volatile than the market. However, this should not be the only factor to be considered while selecting a winning strategy. We need to take into account other parameters that can add value to the portfolio.
Percentage Change in Price in the Last 4 Weeks Greater Than Zero:&nbsp;This ensures that the stocks saw positive price movement over the last month.
Average 20-Day Volume Greater Than 50,000:&nbsp;A substantial trading volume ensures that the stocks are easily tradable.
Price Greater Than or Equal to $5:&nbsp;They must all be trading at a minimum of $5 or higher.
Zacks Rank Equal to 1:&nbsp;Zacks Rank #1 (Strong Buy) stocks indicate that they will significantly outperform the broader U.S. equity market over the next one to three months.
Here are four of the six stocks that qualified for the screening:
The Vita Coco Company, a prominent developer and distributor of coconut water products, is strategically investing in initiatives to broaden the range of occasions when consumers might enjoy coconut water. By promoting its versatility and highlighting its benefits across various contexts, the company aims to integrate coconut water into more aspects of daily life. This effort is significantly boosting the performance of its flagship Vita Coco Coconut Water brand, which is experiencing robust growth and increased market presence as a result.
Seanergy Maritime, a prominent shipping company, recently announced the acquisition of an additional Capesize vessel constructed in 2012 in Japan for a purchase price of $35.6 million. This strategic acquisition is expected to enhance the company&#39;s operational capacity and strengthen its position in the shipping market. SHIP is committed to providing significant returns to shareholders while concurrently renewing and expanding its fleet.
Arcos Dorados is the largest franchisee within the McDonald&#39;s system and operates on a robust business model. To mitigate risks associated with specific countries, the company has diversified its operational footprint over the past decade. While Brazil remains its primary market, Arcos Dorados has significantly benefited from the growth opportunities presented by dynamic markets such as Chile, Colombia and Uruguay, which have positively influenced its financial performance.
Palomar Holdings, a prominent specialty insurance provider, is demonstrating impressive growth, evidenced by the increase in both gross written premiums and net earned premiums. This growth highlights the company&#39;s favorable business climate. With a diverse portfolio of specialty insurance products, Palomar Holdings is well-positioned, reinforcing a positive full-year outlook.
Disclosure: Officers, directors and/or employees of Zacks Investment Research may own or have sold short securities and/or hold long and/or short positions in options that are mentioned in this material. An affiliated investment advisory firm may own or have sold short securities and/or hold long and/or short positions in options that are mentioned in this material.
<a href="https://www.zacks.com/stock/news/2287759/bet-on-these-4-low-beta-stocks-to-navigate-market-uncertainty?cid=CS-BENZ-FT-analyst_blog|rw-2287759">To read this article on Zacks.com click here.</a>

ARCO

PLMR

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Bet on These 4 Low-Beta Stocks to Navigate Market Uncertainty

Investors often opt for the stock-picking approach that involves stocks with a low price-to-earnings (P/E) ratio. This strategy is based on the notion that the lower the P/E ratio is, the higher the stock value. The reasoning behind this is simple &mdash; when a stock&#39;s current market price does not adequately reflect its higher earnings, it suggests potential for growth.
But there is more to this whole P/E story. Because not only low P/E, stocks with a rising P/E can also fetch strong returns. In this regard, investors can bet on the likes of Vita Coco Company (NASDAQ: <a class="ticker" href="https://www.benzinga.com/stock/coco#NASDAQ">COCO</a>), AMC Entertainment (NYSE: <a class="ticker" href="https://www.benzinga.com/stock/amc#NYSE">AMC</a>), Hyperfine (NASDAQ: <a class="ticker" href="https://www.benzinga.com/stock/hypr#NASDAQ">HYPR</a>), Aptevo Therapeutics (NASDAQ: <a class="ticker" href="https://www.benzinga.com/stock/apvo#NASDAQ">APVO</a>) and CLEAR Secure (NYSE: <a class="ticker" href="https://www.benzinga.com/stock/you#NYSE">YOU</a>).
<h3>Rising P/E: A Useful Tool</h3>
The concept is&nbsp;that as earnings rise, so should the price of the stock. As forecasts for expected earnings come in higher, strong demand for the stock should continue to push up its prices. After all, astock&#39;s P/E gives an indication of how much investors are ready to shell out per dollar of earnings.
Suppose an investor wants to buy a stock with a P/E ratio of 30. This means that he is willing to shell out $30 for only $1 worth of earnings as he expects the earnings of the company to rise at a faster pace in the future owing to strong fundamentals.
So, if the P/E of a stock is rising steadily, it means that investors are assured of its inherent strength and expect some strong positives out of it.
Also, studies have revealed that stocks have seen their P/E ratios jump over 100% from their breakout point in the cycle. So, if you can pick stocks early in their breakout cycle, you can end up seeing considerable gains.
<h3>The Winning Strategy</h3>
In order to shortlist stocks that are exhibiting an increasing P/E, we chose the following as our primary screening parameters.
EPS growth estimate for the current year is greater than or equal to last year&#39;s actual growth
Percentage change in last year EPS should be greater than or equal zero
(These two criteria point to flat earnings or a growth trend over the years.)
Percentage change in price over four weeks greater than the percentage change in price over 12 weeks
Percentage change in price over 12 weeks greater than percentage change in price over 24 weeks
(These two criteria show that price of the stock is increasing consistently over the said timeframes.)
Percentage price change for four weeks relative to the S&amp;P 500 greater than the percentage price change for 12 weeks relative to the S&amp;P 500
Percentage price change for 12 weeks relative to the S&amp;P 500 greater than the percentage price change for 24 weeks relative to the S&amp;P 500
(Here, the case for consistent price gains gets even stronger as it displays percentage price changes relative to the S&amp;P 500.)
Percentage price change for 12 weeks is 20% higher than or equal to the percentage price change for 24 weeks, but it should not exceed 100%
(A 20% increase in the price of a stock from the breakout point gives cues of an impending uptrend. But a jump of over 100% indicates that there is limited scope for further upside and that the stock might be due for a reversal.)
In addition, we place a few other criteria that lead us to some likely outperformers.
Zacks Rank less than or equal to 2: Only companies with a Zacks Rank #1 (Strong Buy) or 2 (Buy) can get through.
Average 20-day Volume greater than or equal to 50,000: High trading volume implies that the stocks have adequate liquidity.
Just these few criteria narrowed down the universe from over 7,700 stocks to just 45.
Here are five out of the 45 stocks:
Vita Coco Company: The Zacks Rank #1 company provides a beverage platform.
The average earnings surprise of COCO for the past four quarters is 25.33%.
AMC Entertainment: The Zacks Rank #2 company operates as a theatrical exhibition company primarily in the United States and internationally. It owns or has interests in theatres and screens.
The average earnings surprise of AMC for the past four quarters is 38.01%.
Hyperfine: The Zacks Rank #2 company is a groundbreaking medical device company, which created Swoop, the first FDA-cleared portable MRI system.
The average earnings surprise of HYPR for the past four quarters is 5.88%.
Aptevo Therapeutics:This Zacks Rank #2 company is a biotechnology company focused on developing oncology and hematology therapeutics.
The average earnings surprise of APVO for the past four quarters is 16.72%.
CLEAR Secure: This Zacks Rank #2 company connects you to the cards in your wallet.
The average earnings surprise of YOU for the past four quarters is 77.61%.
Disclosure: Officers, directors and/or employees of Zacks Investment Research may own or have sold short securities and/or hold long and/or short positions in options that are mentioned in this material. An affiliated investment advisory firm may own or have sold short securities and/or hold long and/or short positions in options that are mentioned in this material.
Disclosure: Performance information for Zacks&#39; portfolios and strategies are available at: https://www.zacks.com/performance.
<a href="https://www.zacks.com/stock/news/2279938/why-you-should-bet-on-5-top-ranked-stocks-with-rising-p-e?cid=CS-BENZ-FT-analyst_blog|rw-2279938">To read this article on Zacks.com click here.</a>

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