Is Coca-Cola Europacific Partners (CCEP) Outperforming Other Consumer Staples Stocks This Year?
Coca-Cola European is one of 178 companies in the Consumer Staples group. The Consumer Staples group currently sits at #11 within the Zacks Sector Rank. The Zacks Sector Rank gauges the strength of our 16 individual sector groups by measuring the average Zacks Rank of the individual stocks within the groups.
The Zacks Rank is a proven model that highlights a variety of stocks with the right characteristics to outperform the market over the next one to three months. The system emphasizes earnings estimate revisions and favors companies with improving earnings outlooks. Coca-Cola European is currently sporting a Zacks Rank of #2 (Buy).
Within the past quarter, the Zacks Consensus Estimate for CCEP's full-year earnings has moved 4.9% higher. This is a sign of improving analyst sentiment and a positive earnings outlook trend.
Based on the latest available data, CCEP has gained about 19.2% so far this year. In comparison, Consumer Staples companies have returned an average of 7.4%. As we can see, Coca-Cola European is performing better than its sector in the calendar year.
Another Consumer Staples stock, which has outperformed the sector so far this year, is BJ's Wholesale Club (BJ). The stock has returned 25% year-to-date.
For BJ's Wholesale Club, the consensus EPS estimate for the current year has increased 1.7% over the past three months. The stock currently has a Zacks Rank #2 (Buy).
Breaking things down more, Coca-Cola European is a member of the Beverages - Soft drinks industry, which includes 16 individual companies and currently sits at #36 in the Zacks Industry Rank. Stocks in this group have gained about 8.3% so far this year, so CCEP is performing better this group in terms of year-to-date returns.
In contrast, BJ's Wholesale Club falls under the Consumer Products - Staples industry. Currently, this industry has 38 stocks and is ranked #144. Since the beginning of the year, the industry has moved +1.8%.
Coca-Cola European and BJ's Wholesale Club could continue their solid performance, so investors interested in Consumer Staples stocks should continue to pay close attention to these stocks.
Want the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days. Click to get this free report
Coca-Cola Europacific Partners (CCEP) : Free Stock Analysis Report
BJ's Wholesale Club Holdings, Inc. (BJ) : Free Stock Analysis Report
This article originally published on Zacks Investment Research (zacks.com).
Zacks Investment Research
Hashtags
Try Our AI Features
Explore what Daily8 AI can do for you:
Comments
No comments yet...
Related Articles
Miami Herald
5 hours ago
- Miami Herald
Costco finally makes food court change members demanded
Everyone who drinks soda has had the following exchange. "I'll have a Coke." "Is Pepsi okay?" The restaurant knows it isn't. Pepsi and Coke are not interchangeable and the reality is that most people prefer Coca-Cola products. Related: Costco gives members new benefit that stresses out workers Sprite, for example, is the dominant lemon-lime soda. PepsiCo PEP has a rival for it, Starry, a brand no person has ever intentionally ordered. Sales numbers back this up. In 2024, Coca-Cola was the most popular soda sold in the United States. That was followed by Dr. Pepper and Sprite. Pepsi came in fourth and you have to assume that a lot of those sales were people who ordered a Coke and were forced to accept the substitute. Diet Coke only fell slightly behind Pepsi with the much-superior Coke Zero coming in seventh just below Mointain Dew. Pepsi, of course, has its fans in the same way that some people thought the Monkees were better than the Beatles. Don't miss the move: Subscribe to TheStreet's free daily newsletter Still, while people will never fully agree on which cola is better, Coke has a large enough fanbase that when a business opts to serve Pepsi, customers wonder how much the brand paid for that access. Coca-Cola, however, has recently made some major inroads. It's about to replace Pepsi as the official soda of Carnival and it has finally made a major move at Costco. Image source: Shutterstock-Ant DM Given Costco's mission to save money for members, you might expect the chain to make some odd choices. If its food court offered Polar Soda or some other off brand that might have been sold to members as quirky. The warehouse club could also have made an effort to sell its food court concession to some up-and-coming brand. Members might have enjoyed seeing Jones Soda or some other brand looking to make a mark at the warehouse club's popular food court. Instead, Costco, for the past many years, has offered Pepsi at its food court. That meant that anyone ordering its famed $1.50 hot dog deal had no choice but to accept Pepsi along with their sandwich. More Retail: Walmart CEO sounds alarm on a big problem for customersTarget makes a change that might scare Walmart, CostcoTop investor takes firm stance on troubled retail brandWalmart and Costco making major change affecting all customers Costco, however, made the choice earlier this year to end its deal with PepsiCo and replace Pepsi with Coke. That was a move many members were excited about and the change has finally happened. it may take a little longer for your Costco to replace Pepsi with Coke, but the change is coming and it has actually happened at most of the chain's warehouse club locations. While Costco has invested in its digital operations, its food court and other in-store offerings remain incredibly important because most of the company's sales happen in its stores. CFO Gary Millerchip shared some insight on the company's digital business during its third-quarter earnings call. "So, if you just do the sort of math on our business and how we define digital, which, as a reminder, doesn't include the delivery solutions that we offer through Instacart. It doesn't include our travel business where most of it would be online. So, there's a number of elements that I think others might include in the sort of e-commerce business that we wouldn't," he said. Related: Costco members angry about price increase So, while the actual number is bigger, Millerchip shared how the company sees its digital business. "So, on the straight math on how we define it, it would be about 8% of our business. If we included some of the components that others would include, it probably takes it to slightly north of 10%. And then, if you would take gas out of our total sales, which I know, obviously, there isn't any commerce element to gas, it's around the 12% of total sales that we generate today," he added. The Arena Media Brands, LLC THESTREET is a registered trademark of TheStreet, Inc.
Newsweek
6 hours ago
- Newsweek
Costco Rolls Out Coca-Cola Change At Food Courts
Based on facts, either observed and verified firsthand by the reporter, or reported and verified from knowledgeable sources. Newsweek AI is in beta. Translations may contain inaccuracies—please refer to the original content. Costco has officially begun replacing Pepsi products with Coca-Cola in its food court soda fountains. The rollout launched at the start of July and is expected to be completed by the end of this Fall, covering all 908 Costco locations globally, including 625 in the U.S. The New York Post reports. Newsweek contacted Costco via online form on Sunday for comment. Why It Matters This marks a major reversal for Costco, which had exclusively served Pepsi in its food courts since 2013. The decade-long switch was initially made to preserve the $1.50 hot dog and soda combo, a beloved fixture of the brand. The return of Coca-Cola to Costco signals a shift in supplier strategy and responds to long-standing customer preference. Cases of Coca-Cola are displayed at a Costco Wholesale store on July 12, 2025 in San Diego, California. Cases of Coca-Cola are displayed at a Costco Wholesale store on July 12, 2025 in San Diego, to Know Costco CEO Ron Vachris confirmed the change at the company's annual shareholder meeting in January, as reported by CNN, stating:" The new Coke lineup is expected to include the following, reports The U.S. Sun: Original Coca-Cola Sprite Diet Coke Coke Zero Barq's Root Beer Minute Maid Lemonade However, product offerings may vary by store location and state. This comes as President Donald Trump claimed on Truth Social that Coca-Cola plans to replace high-fructose corn syrup with cane sugar as its primary sweetener. Trump wrote on Truth Social on Wednesday: "I have been speaking to Coca-Cola about using REAL Cane Sugar in Coke in the United States, and they have agreed to do so. I'd like to thank all of those in authority at Coca-Cola. This will be a very good move by them—You'll see. It's just better!" As reported by Newsweek, Coca-Cola has responded to Trump's claim that it had agreed to use real cane sugar in its products but did not confirm or deny the statement. Coca-Cola replied to a comment on Trump's post, saying: "All Coca-Cola brand products are wholesome beverages manufactured in compliance with the federal law." What People Are Saying The Coca-Cola Company said in a statement to FOX Business, as per The New York Post: "Costco insiders and Coca-Cola fans are buzzing about the transition, which will span warehouses in 14 countries, allowing Costco members everywhere to once again enjoy their favorite Coca-Cola beverages alongside Costco's beloved food court offerings." What Happens Next The transition is scheduled to finish by fall 2025, with customers nationwide gradually seeing Coca‑Cola branding appear at food court fountains. Costco expects the $1.50 hot dog and soda combo to remain unchanged, maintaining its decades-old price point Meanwhile, the company continues to introduce new menu items and open additional stores. Analysts view the beverage switch as a strategic move to boost customer satisfaction, drive foot traffic, and reaffirm value perception.
Yahoo
9 hours ago
- Yahoo
Kraft Heinz Could Be Breaking Up. How Should You Play the High-Yield Dividend Stock Here?
What happens when a Wall Street legend finds itself at a crossroads, battered by market underperformance yet dangling one of the juiciest dividend yields in its sector? Kraft Heinz (KHC), one of America's most iconic food companies, is grabbing headlines with reports of a breakup swirling. According to the Wall Street Journal, Kraft Heinz could spin off a 'sizable' chunk of its grocery business and retool it for new growth. This possibility, viewed positively by analysts, comes as the packaged food titan's stock stands out for its industry-leading dividend yield. More News from Barchart Get exclusive insights with the FREE Barchart Brief newsletter. Subscribe now for quick, incisive midday market analysis you won't find anywhere else. Investors can't ignore the numbers. Kraft Heinz basks in a forward dividend yield of nearly 6%, a figure that's almost triple the consumer staples sector average. Yet, that high yield betrays a deeper story: KHC shares have dropped more than 17% over the past year, sharply underperforming the S&P 500 Index ($SPX). Is this bold breakup plan the catalyst Kraft Heinz needs to rewrite its growth story and reward loyal shareholders, or just another twist in the tale of a stock stuck in neutral? Let's dive into KHC. KHC's Financial Position Kraft Heinz (KHC), the global food and beverage giant behind household staples like Kraft macaroni and cheese, Heinz ketchup, Capri Sun, and Lunchables, holds a market capitalization of $33.3 billion. The company remains a magnet for income-seeking investors, offering an annual dividend of $1.60 per share, a yield of 5.8%. Kraft Heinz trades at a forward price-earnings ratio of 10.7x, well below the packaged foods sector median of 16.12x, with a price-sales ratio of 1.27x, just a tick above the industry's 1.2x median, marking KHC as attractively valued in comparison to peers. Earnings haven't helped the case, though, as on April 30, Kraft Heinz delivered a first-quarter report that highlighted its ongoing operational challenges. Net sales slipped 6.4%, reflecting persistent headwinds, while the gross profit margin contracted by 60 basis points to 34.4%. Diluted earnings per share landed at $0.59, a year-over-year drop of 10.6%, and adjusted EPS came in at $0.62, down 10.1%. Despite sluggish top-line results, the company's free cash flow remained stable at $500 million. So far in 2025, Kraft Heinz has returned $700 million to shareholders, including $477 million in dividends and $225 million in share repurchases. As of March 29, the company had $1.7 billion in buyback authorization remaining, giving it flexibility in capital returns. Kraft Heinz's Strategic Pivot Kraft Heinz is exploring a major breakup that could involve spinning off a large chunk of its grocery business, including many familiar Kraft-branded staples. The new standalone entity could be valued as high as $20 billion. What remains would center around faster-growing segments like sauces, condiments, and spreads, brands like Heinz ketchup and Grey Poupon mustard, where growth has been steadier and margins more attractive. In Italy, Kraft Heinz just agreed to sell its infant and specialty food division to NewPrinces S.p.A., a top food producer in the region. The deal includes well-known brands like Plasmon, Nipiol, Dieterba, Aproten, and Biaglut, plus a key manufacturing plant in Latina, Italy. If approved by regulators, the transaction is expected to close by the end of 2025. Meanwhile, in the U.S., the company is putting $3 billion into upgrading its 30 American factories, the biggest investment it's made in over a decade. Management says the modernization will speed up new product launches and help the company defend its market share. What the Analysts Are Saying The market's read on Kraft Heinz right now is a mix of caution and curiosity, as investors await its next earnings report set for July 30, 2025. For the current quarter, analysts are expecting earnings per share of $0.64, down from $0.78 a year ago, a 17.95% drop, and for the full year 2025, the consensus is $2.57, a sharp decline from $3.06 in 2024. Analysts remain neutral. The 21 surveyed rate KHC a consensus 'Hold.' The average price target sits at $28.75, pointing to marginal upside from the current price. Conclusion Kraft Heinz is undergoing a transition, streamlining its operations, investing in its core, and is now potentially considering spinning off a major part of its business. With a nearly 6% dividend yield, the stock still earns its place in income portfolios, but the case for growth remains unclear. For now, it looks more like a 'wait-and-see' play than a breakout story. Unless the company shows real progress on execution or unlocks value through the rumored breakup, the stock probably stays rangebound. On the date of publication, Ebube Jones did not have (either directly or indirectly) positions in any of the securities mentioned in this article. All information and data in this article is solely for informational purposes. This article was originally published on Error in retrieving data Sign in to access your portfolio Error in retrieving data Error in retrieving data Error in retrieving data Error in retrieving data
