Two Energy Drink Stocks to Consider for a Steady Portfolio in 2026
Written by Emily J. Thompson, Senior Investment Analyst
Updated: Dec 03 2025
0mins
Should l Buy PEP?
Source: NASDAQ.COM
Energy Drink Market Overview: Energy drink companies are diversifying their offerings with clean-label, low-sugar, and plant-based options, while facing challenges like regulatory scrutiny and competition. The industry is seeing a trend towards health consciousness and overlaps with sports nutrition.
Investment Opportunities: Despite challenges, energy drink companies like Monster Beverage Corp. (MNST) and PepsiCo Inc. (PEP) are seen as strong investment opportunities due to their global brands, high profit margins, and innovation focus, with both companies holding favorable Zacks Ranks for 2026.
Monster Beverage Performance: Monster Beverage has experienced a 16% sales growth in its energy drinks segment, benefiting from market expansion and product launches, with expected revenue and earnings growth rates of 9.3% and 12.8% for the next year.
PepsiCo's Strategy: PepsiCo is seeing strong beverage performance internationally and is focused on localizing flavors and expanding product options. The company has an expected revenue and earnings growth rate of 3.3% and 5.9% for the next year, supported by productivity initiatives and digital transformation efforts.
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Analyst Views on PEP
Wall Street analysts forecast PEP stock price to fall
12 Analyst Rating
6 Buy
6 Hold
0 Sell
Moderate Buy
Current: 167.280
Low
144.00
Averages
161.90
High
172.00
Current: 167.280
Low
144.00
Averages
161.90
High
172.00
About PEP
PepsiCo, Inc. is a global beverage and convenient food company. The Company’s segments include PepsiCo Foods North America (PFNA), PepsiCo Beverages North America (PBNA), International Beverages Franchise (IB Franchise), Europe, Middle East and Africa (EMEA), Latin America Foods (LatAm Foods), and Asia Pacific Foods. PFNA segment includes all of its convenient food businesses in the United States and Canada. PBNA segment includes all of its beverage businesses in the United States and Canada. IB Franchise segment includes its international franchise beverage businesses, as well as its SodaStream business. EMEA segment includes its convenient food businesses and beverage businesses with Company-owned bottlers in Europe, the Middle East and Africa. LatAm Foods segment includes all of its convenient food businesses in Latin America. Asia Pacific Foods segment consists of its convenient food businesses in Asia Pacific, including China, Australia and New Zealand, as well as India.
About the author
Emily J. Thompson
Emily J. Thompson, a Chartered Financial Analyst (CFA) with 12 years in investment research, graduated with honors from the Wharton School. Specializing in industrial and technology stocks, she provides in-depth analysis for Intellectia’s earnings and market brief reports.
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