The end of the earnings season is always a good time to take a step back and see who shined (and who not so much). Let’s take a look at how beverages, alcohol, and tobacco stocks fared in Q3, starting with Altria (NYSE:MO).

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 mixed Q3. As a group, revenues missed analysts’ consensus estimates by 1.9% while next quarter’s revenue guidance was 2.7% below.

Thankfully, share prices of the companies have been resilient as they are up 9.1% on average since the latest earnings results.

Altria (NYSE:MO)

Best known for its Marlboro brand of cigarettes, Altria (NYSE:MO) offers tobacco and nicotine products.

Altria reported revenues of $5.34 billion, up 1.3% year on year. This print was in line with analysts’ expectations, but overall, it was a mixed quarter for the company with a narrow beat of analysts’ EBITDA estimates.

“Altria delivered outstanding results in the third quarter,” said Billy Gifford, Altria’s Chief Executive Officer.

Interestingly, the stock is up 11.8% since reporting and currently trades at $56.45.

Is now the time to buy Altria? Access our full analysis of the earnings results here, it’s free.

Best Q3: Zevia (NYSE:ZVIA)

With a primary focus on soda but also a presence in energy drinks and teas, Zevia (NYSE:ZVIA) is a better-for-you beverage company.

Zevia reported revenues of $36.37 million, down 15.6% year on year, falling short of analysts’ expectations by 6.8%. However, the business still had a strong quarter with EBITDA guidance for next quarter exceeding analysts’ expectations and an impressive beat of analysts’ EPS estimates.

The market seems happy with the results as the stock is up 152% since reporting. It currently trades at $2.73.

Is now the time to buy Zevia? Access our full analysis of the earnings results here, it’s free.

Weakest Q3: Celsius (NASDAQ:CELH)

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 $265.7 million, down 30.9% year on year, falling short of analysts’ expectations by 0.7%. It was a softer quarter as it posted a significant miss of analysts’ adjusted operating income estimates.

Celsius delivered the slowest revenue growth in the group. As expected, the stock is down 8.7% since the results and currently trades at $29.01.

Read our full analysis of Celsius’s results here.

Keurig Dr Pepper (NASDAQ:KDP)

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 $3.89 billion, up 2.3% year on year. This result came in 0.8% below analysts' expectations. Taking a step back, it was a mixed quarter as it also logged an impressive beat of analysts’ EBITDA estimates but a miss of analysts’ gross margin estimates.

The stock is down 11.5% since reporting and currently trades at $32.49.

Read our full, actionable report on Keurig Dr Pepper here, it’s free.

PepsiCo (NASDAQ:PEP)

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 $23.32 billion, flat year on year. This print lagged analysts' expectations by 1.9%. It was a slower quarter as it also produced a miss of analysts’ organic revenue estimates and EBITDA in line with analysts’ estimates.

The stock is down 4.1% since reporting and currently trades at $160.37.

Read our full, actionable report on PepsiCo here, it’s free.

Market Update

Thanks to the Fed's series of rate hikes in 2022 and 2023, inflation has cooled significantly from its post-pandemic highs, drawing closer to the 2% goal. This disinflation has occurred without severely impacting economic growth, suggesting the success of a soft landing. The stock market has thrived in 2024, spurred by recent rate cuts (0.5% in September and 0.25% in November), and a notable surge followed Donald Trump’s presidential election win in November, propelling indices to historic highs. Nonetheless, the outlook for 2025 remains clouded by potential trade policy changes and corporate tax discussions, which could impact business confidence and growth. The path forward holds both optimism and caution as new policies take shape.

Want to invest in winners with rock-solid fundamentals? Check out our Top 6 Stocks and add them to your watchlist. These companies are poised for growth regardless of the political or macroeconomic climate.

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