Consumer Staples Are Up 12% This Year—These 3 Beverage Stocks Are Leading the Way

Key Points

• Consumer staples have rebounded in 2026, led by beverage stocks Coca-Cola, Monster Beverage, and Keurig Dr. Pepper, each up at least 20% year-to-date.
• These companies all report quarterly earnings within the coming weeks, with investors watching revenue growth, margins, and EPS guidance.
• Technical indicators suggest bullish momentum for all three companies' shares.

The market loves a comeback, and that’s the scenario unfolding this year in the consumer staples sector. After being the market’s worst-performing sector in 2025, consumer staples have rebounded sharply in 2026, and the Consumer Staples Select Sector SPDR Fund NYSEARCA: XLP is up roughly 14% year-to-date (YTD).

The rally has mostly been rotation-oriented. Value and income sectors have led much of the year, and growth sectors like tech have been highly volatile. But the consumer staples rally is uneven, and the market has been rewarding beverages more than food and household products. The industry’s strength is also hidden within the broader index: XLP’s top five stocks account for nearly 40% of total holdings, yet only one is a beverage maker.

Three of the biggest outperformers have been The Coca-Cola Company NYSE: KO, Monster Beverage Corp. NASDAQ: MNST, and Keurig Dr. Pepper Inc. NASDAQ: KDP, all up at least 20% year-to-date (YTD). All three also report earnings over the next few weeks, and today we’ll preview those reports and the key metrics investors should watch when numbers are released.

Coca-Cola: Growing Price and Volume Simultaneously

Coca-Cola has been a standout in consumer staples, and its stock is up more than 30% YTD. In fiscal Q2 2026, the company posted its eighth straight earnings-per-share (EPS) beat and beat revenue expectations, with 6.2% year-over-year (YOY) growth.

Compare these figures to its biggest competitor, PepsiCo Inc. NASDAQ: PEP, which released an unfavorable forecast during its Q3 2026 results on Oct. 7.

Despite beating revenue expectations, Pepsi cut its Q4 EPS outlook due to margin concerns and rising costs. Full-year EPS growth was cut to a range of 1-2%, down from the 4-6% range in Q2.

The company already cut prices on Lay’s and Doritos chips in February, and management cites the Iran war and cautious U.S. consumers as reasons for the weakness.

Meanwhile, Coca-Cola raised its full-year 2026 revenue outlook during its July 28 release. Management now expects 5% organic revenue growth and EPS growth of 9% to 10%, up from 8% to 9%.

Watch that 5% revenue growth figure when Coca-Cola reports Q3 2026 results on Oct. 27. If the company hits its revenue guidance projections and raises (or at least holds) into Q4, it justifies the premium following Pepsi’s trim.

Bullish technical signals are also emerging as the earnings date approaches. The MACD indicator produced a bullish reversal pattern just as the share price dipped below support at the 50-day moving average. Bullish momentum ahead of the report also suggests the market expects volume and price to keep boosting growth.

Monster Beverage: Coke System Boosts Re-Acceleration

Caffeinators unite! Monster Beverage also benefits from a strong Coca-Cola Company, since the two firms have had a long-term distribution agreement since 2014, and KO owns a 16.7% stake in MNST. As part of the agreement, Coca-Cola transferred its energy-drink brands, including NOS and Full Throttle, to Monster, while Monster handed over its non-energy brands, including Peace Tea and Hubert’s Lemonade, to Coca-Cola. The partnership has been highly lucrative, with MNST shares up nearly 900% over the past 12 years. And it's this system once again helping fuel growth in 2026.

Monster’s fiscal Q2 2026 net sales rose more than 20% YOY, and management reported double-digit growth in every region. The Aug. 6 report also showed international markets outperforming, with 34.6% YOY growth, and international sales now account for 46% of total sales. This report continued the strength that began in fiscal Q1 when sales were up 26.7% YOY.

Gross margins could be the sticking point in the upcoming Q3 2026 report on Nov. 5. Aluminum prices and transportation costs continue to weigh more heavily than usual, and gross margins declined to 55% from 56.5% in Q1. That number rebounded to 55.9% in fiscal Q2 as the company raised prices, but the first half of 2026 was still lower than the same period in 2025. Monster Beverage likely needs to maintain gross margins of at least 55% to keep its rally going, but that could prove difficult because international sales, a key driver of the company's growth, have historically carried lower margins than U.S. sales.

MNST shares have been in a downtrend since July, but signs of a reversal are picking up. The relative strength index (RSI) has surged out of the bearish trading zone and now sits just below the overbought threshold. The MACD also showed a bullish crossover, and both lines are now crossing the histogram. If MNST can break above the trendline before the Nov. 5 earnings report, it could signal that margin concerns are overblown.

Keurig Dr. Pepper: Big Rebound off a Depressed Base

Keurig Dr. Pepper has taken punch after punch over much of the last four years, as shares dipped lower and lower amid sustained selling pressure.

One of the biggest blows came when the company announced its $18.2 billion acquisition of JDE Peet's last August, which cratered the stock 20% in less than a week.

But then a funny thing happened. The deal officially closed on April 1 this year, and the stock has gained more than 25% since the i’s and t’s were dotted and crossed. The company’s Q2 2026 results on Aug. 6 showed JDE Peet’s earned $2.8 billion in revenue and $414 million in operating income, both ahead of expectations, even as total U.S. coffee sales fell 3.2%.

Management reaffirmed its 2026 EPS guidance in the report, and investors will watch that number when the company reports Q3 2026 numbers on Nov. 3. If the company raises or reaffirms EPS guidance again, it means the beverage segment’s growth continues to overshadow coffee weakness. A full-year 2026 EPS trim puts the post-deal re-rating story at risk.

KDP shares have finally regained their August 2025 peak, and there’s technical evidence supporting further gains. A golden cross and 50-day moving average support confirm the uptrend, and the RSI has not yet triggered an overbought signal. The market will also expect progress toward the company’s goal of 4.1x leverage by the end of 2026.