US Consumer Staples: The Great Divide; C2Q26 Staples Earnings Preview

Research evidence excerpt

US Consumer Staples: The Great Divide; C2Q26 Staples Earnings Preview

ntum remaining strong we now view the high end of the company's +1-212-713 1081

guidance range for organic sales growth/EPS as achievable.

KDP (Buy): Despite the move higher QTD, we view KDP's NT/MT setup as positive

as Street estimates look more than achievable for the upcoming quarter/fiscal year

coupled with the spin slowly nearing a close. While there are some concerns

around the Coffee business (CEO transition and rising input costs), we think

stronger growth from USRB will continue to drive upside from here.

MNST (Neutral): While MNST is one of the most crowded longs in our coverage

and has considerably outperformed since last quarter, our conversations would

suggest that most expect another strong print driven by better than expected top

line growth. That being said, we think the company will also have to provide proof

that they can sustain top line momentum, particularly as competitive pressures

ramp and comps get more difficult.

CL (Buy): Like much of HPC, shares have been volatile as a result of cost

uncertainty related to the conflict in the Middle East. That said, we think CL is likely

to deliver a solid quarter from a top line perspective and believe this momentum

will continue to build into the back half of the year. Where input costs land given

recent volatility will impact numbers to a degree, but at this stage we think

guidance remains firmly achievable.

CHD (Neutral): We believe CHD will likely deliver another quarter of organic

revenue upside relative to guidance and Street expectations. From an outlook

standpoint, we think the high end is now more likely on both the top and bottom

line. Despite a favorable fundamental setup, we think this is largely priced in with