US Consumer Staples: Key Debates & Feedback Post C2Q26 Preview

Research evidence excerpt

US Consumer Staples: Key Debates & Feedback Post C2Q26 Preview

We highlighted Neutral-rated CHD as having a +1-212-713 1081

favorable setup, which was met with a lot of agreement as most believe organic

growth will remain strong and Street EPS estimates remain firmly achievable.

Interestingly there seemed to be less concern on valuation with bulls pointing to

the fact that organic growth remains well above peers yet relative valuation is

more or less in-line with historical averages. We also highlighted Neutral-rated

SAM as a company where the setup was less attractive, which was also met with a

lot of agreement with many of the view the Street top line numbers remain far too

optimistic.

Greatest Pushback = PG/CELH: We outlined the setups for both Buy-rated

PG and Buy-rated CELH as tricky - which was met with a fair degree of pushback.

For P&G, many felt that NT expectations remained low (both for the quarter and

initial guidance) and given the relative underperformance YTD, the setup into the

print was more compelling on the long side. Conversely, many were of the view

that the setup for CELH was negative as many saw potential for downside to sales

expectations for both the quarter/year and struggled to see how the stock worked

with tracked trends still under pressure.

Top Stock Question: What Will It Take For KO/MNST To Work? We also

outlined Buy-rated KO and Neutral-rated MNST as stocks with favorable setups

this earnings season and while we think most agree that fundamentals will remain

strong, we fielded more questions than we expected on what it would take for the

stock to trade higher. For KO, the question seemed to center on specifically

whether a raise in full year guidance was needed for the stock to outperform.