PepsiCo leads slump in beverage stocks ahead of earnings season
Tim Boyle/Getty Images News
Beverage stocks traded weak on Thursday with a myriad factors believed to be impacting sentiment.
The biggest factor is probably the start of earnings season next week, with PepsiCo (NASDAQ:PEP) heading into the earnings conference on October 10. "Expectations have moved lower ahead of the print as investors are nervous PEPâs volume/share could be a little weak as downtrading pressures to private label (especially in Frito Lay) have increased," warned Goldman Sachs analyst Bonnie Herzog. Higher interest rates, FX pressures, and the new focus on weight loss drugs are also seen as potential negative factors in the downswing.
PepsiCo (PEP) showed a 4.49% decline at 2:55 p.m, while Coca-Cola (NYSE:KO) was down 4.05%. Keurig Dr Pepper (KDP) was off 3.75% and Monster Beverage (MNST) was 3.43% lower. Celsius Holdings (CELH) slipped 1.85% and Vita Coco (COCO) was down 1.64%.
Running contrary to the current market sentiment, the Seeking Alpha Quant Rating is flashing Strong Buy on both PepsiCo (PEP) and Coca-Cola (KO).

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