Will Coke and Pepsi Earnings Boost Consumer Staples ETFs?
Written by Emily J. Thompson, Senior Investment Analyst
Updated: Oct 22 2025
0mins
Should l Buy KO?
Source: NASDAQ.COM
Coca-Cola and PepsiCo Earnings: Both Coca-Cola and PepsiCo reported strong third-quarter earnings for 2025, with Coca-Cola's EPS at 82 cents and revenues of $12.46 billion, while PepsiCo's revenues reached $23.94 billion and EPS at $2.29, surpassing estimates.
Market Trends and Consumer Behavior: Despite positive earnings, both companies noted a decline in demand, particularly among low-income consumers, leading to strategies like offering smaller, more affordable packaging to attract budget-conscious buyers.
Product Innovations: PepsiCo is revamping its snack offerings with healthier ingredients and reducing prices on multipacks to appeal to health-conscious consumers, while Coca-Cola is focusing on smaller can sizes to maintain sales.
Investment Opportunities: Investors may consider ETFs that include Coca-Cola and PepsiCo, such as the Consumer Staples Select Sector SPDR Fund and Vanguard Consumer Staples ETF, as a way to gain exposure to these major companies in the consumer staples sector.
Trade with 70% Backtested Accuracy
Stop guessing "Should I Buy KO?" and start using high-conviction signals backed by rigorous historical data.
Sign up today to access powerful investing tools and make smarter, data-driven decisions.
Analyst Views on KO
Wall Street analysts forecast KO stock price to fall
14 Analyst Rating
13 Buy
1 Hold
0 Sell
Strong Buy
Current: 79.340
Low
71.00
Averages
79.33
High
85.00
Current: 79.340
Low
71.00
Averages
79.33
High
85.00
About KO
The Coca-Cola Company is a beverage company. The Company's segments include Europe, Middle East and Africa (EMEA); Latin America; North America; Asia Pacific, and Bottling Investments. It sells multiple brands across several beverage categories worldwide. Its portfolio of sparkling soft drink brands includes Coca-Cola, Sprite and Fanta. Its water, sports, coffee and tea brands include Dasani, smartwater, vitaminwater, Topo Chico, BODYARMOR, Powerade, Costa, Georgia, Fuze Tea, Gold Peak and Ayataka. Its juice, value-added dairy and plant-based beverage brands include Minute Maid, Simply, innocent, Del Valle, fairlife and Santa Clara. It operates in two lines of business: concentrate operations and finished product operations. Its concentrate operations sell beverage concentrates, syrups, including fountain syrups, and certain finished beverages to authorized bottling operations. Its finished product operations sell sparkling soft drinks and a variety of other finished beverages.
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.
Consumer Staples Stocks Remain Attractive Amid Global Turmoil
- Stability of Consumer Stocks: Amid rising geopolitical tensions and economic concerns in the U.S., consumer staples stocks like Coca-Cola and Procter & Gamble are viewed as solid investment choices, as their products remain in demand even during economic downturns, ensuring a steady revenue stream.
- Advantages of Dividend Kings: Both Coca-Cola and Procter & Gamble are Dividend Kings, offering dividend yields of 2.5% and 2.6% respectively, significantly higher than the S&P 500's 1.1%, making them attractive assets for investors in the current market environment.
- Performance Discrepancies: Coca-Cola's organic sales grew by 5% in the most recent quarter, while Procter & Gamble's remained flat, leading to a 12% increase in Coca-Cola's stock price over the past year compared to a 5% decline for Procter & Gamble, highlighting significant differences in market performance.
- Flexibility in Investment Choices: With a $1,000 investment, investors can purchase 12 shares of Coca-Cola or 6 shares of Procter & Gamble, allowing them to choose based on their risk preferences while ensuring stable returns in an uncertain market.
See More
5 Essential Consumer Stocks to Consider as Market Volatility Increases
- Market Concerns: The article discusses the current market anxieties related to the escalating conflict in the Middle East, tariffs, and advancements in artificial intelligence.
- Investment Strategy: It suggests that consumer-staples stocks may provide a safe haven for income investors during these turbulent times.
See More
Buffett's Investment Strategy and Holdings Analysis
- Long-Term Investment Philosophy: Over 60 years, Buffett achieved a compounded annual growth rate exceeding 19%, significantly outpacing the S&P 500's 10%, indicating the effectiveness of his investment strategy and its appeal to investors seeking inspiration.
- Apple Holdings: Buffett has held Apple shares since 2016, and despite selling some recently to lock in gains, it remains the largest holding in his portfolio, reflecting his ongoing confidence in the company and its strong brand moat.
- Coca-Cola's Steady Performance: Buffett has held Coca-Cola shares since the late 1980s, making it the fourth-largest holding in his portfolio; its status as a
See More
Three Stocks Reflecting Buffett's Investment Principles
- Apple's Stock Holding: Buffett has held Apple shares since 2016, witnessing an approximately 800% increase, and despite selling some shares last year, it remains the largest holding in his portfolio, indicating his ongoing confidence in the company.
- Coca-Cola's Long-Term Investment: Buffett has owned Coca-Cola stock since the late 1980s, making it the fourth-largest holding in his portfolio; its strong brand and global distribution network ensure steady earnings growth, complemented by over 50 years of dividend increases, showcasing its reliability.
- American Express's Robust Performance: Buffett's investment in American Express dates back to the 1960s, and it is now the second-largest holding in his portfolio, with 2023 revenues exceeding $72 billion, demonstrating resilience during economic fluctuations and making it a solid long-term investment choice.
- Buffett's Investment Wisdom: Buffett emphasizes long-term investing and selecting quality companies, with Apple, Coca-Cola, and American Express exemplifying this principle, allowing investors to adopt his strategy of choosing firms with competitive advantages for steady growth.
See More
Berkshire Hathaway Enters New Era Post-Buffett Retirement
- New CEO Transition: With Warren Buffett retiring on December 31, Greg Abel officially took over the day-to-day operations and the $319 billion investment portfolio of Berkshire Hathaway on January 1, marking a significant governance shift, as Abel vows to uphold Buffett's investment philosophy.
- Expansion of 'Forever' Holdings: In his first letter to shareholders, Abel announced the inclusion of Moody's and Apple into Berkshire's 'forever' holdings, with Moody's being the third-longest-held stock since 2000, boasting a 41% annual yield, showcasing its resilience in economic fluctuations.
- Valuation Considerations for Apple: While Abel considers Apple a long-term investment, the decision raises eyebrows given Buffett's sale of 75% of Berkshire's Apple shares prior to retirement, especially with Apple's current P/E ratio at 33.4, reflecting a commitment to value investing.
- Impact of Share Buybacks: Since 2013, Apple has repurchased over $841 billion in shares, reducing its outstanding shares by 44%, a strategy that has significantly boosted earnings per share, indicating that Abel's decisions may influence Berkshire's stake in Apple, reflecting sensitivity to market dynamics.
See More
Coca-Cola and S&P Global's Dividend Growth Potential
- Coca-Cola's Stability: Coca-Cola has raised its dividends for 64 consecutive years, and despite a decline in global beverage consumption, it has diversified its product portfolio and maintained a capital-light business model, achieving a 5% organic revenue growth in 2025, with a forecasted growth of 4%-5% in 2026, demonstrating strong cash flow and ongoing dividend payment capacity.
- Dividend Yield and Valuation: With a current dividend yield of 2.6% and a low payout ratio of 67%, Coca-Cola has ample room to increase dividends in the future; at a stock price of $78, it trades at a reasonable P/E ratio of 24, making it suitable for long-term holding.
- S&P Global's Resilience: S&P Global has raised its dividends for 53 consecutive years, and although its yield is only 0.9%, its stable growth in financial data and analytics services allows it to weather economic fluctuations, with adjusted EPS growing 14% in 2025 and expected growth of 9%-10% in 2026.
- Business Restructuring and Future Outlook: S&P Global plans to spin off its automotive data business later this year to streamline operations and enhance profitability; with a current stock price of $448 and a P/E ratio of 23, it presents an attractive option for investors seeking stability.
See More
Consumer Staples Stocks Remain Attractive Amid Global Turmoil
- Stability of Consumer Stocks: Amid rising geopolitical tensions and economic concerns in the U.S., consumer staples stocks like Coca-Cola and Procter & Gamble are viewed as solid investment choices, as their products remain in demand even during economic downturns, ensuring a steady revenue stream.
- Advantages of Dividend Kings: Both Coca-Cola and Procter & Gamble are Dividend Kings, offering dividend yields of 2.5% and 2.6% respectively, significantly higher than the S&P 500's 1.1%, making them attractive assets for investors in the current market environment.
- Performance Discrepancies: Coca-Cola's organic sales grew by 5% in the most recent quarter, while Procter & Gamble's remained flat, leading to a 12% increase in Coca-Cola's stock price over the past year compared to a 5% decline for Procter & Gamble, highlighting significant differences in market performance.
- Flexibility in Investment Choices: With a $1,000 investment, investors can purchase 12 shares of Coca-Cola or 6 shares of Procter & Gamble, allowing them to choose based on their risk preferences while ensuring stable returns in an uncertain market.
See More
5 Essential Consumer Stocks to Consider as Market Volatility Increases
- Market Concerns: The article discusses the current market anxieties related to the escalating conflict in the Middle East, tariffs, and advancements in artificial intelligence.
- Investment Strategy: It suggests that consumer-staples stocks may provide a safe haven for income investors during these turbulent times.
See More
Buffett's Investment Strategy and Holdings Analysis
- Long-Term Investment Philosophy: Over 60 years, Buffett achieved a compounded annual growth rate exceeding 19%, significantly outpacing the S&P 500's 10%, indicating the effectiveness of his investment strategy and its appeal to investors seeking inspiration.
- Apple Holdings: Buffett has held Apple shares since 2016, and despite selling some recently to lock in gains, it remains the largest holding in his portfolio, reflecting his ongoing confidence in the company and its strong brand moat.
- Coca-Cola's Steady Performance: Buffett has held Coca-Cola shares since the late 1980s, making it the fourth-largest holding in his portfolio; its status as a
See More
Three Stocks Reflecting Buffett's Investment Principles
- Apple's Stock Holding: Buffett has held Apple shares since 2016, witnessing an approximately 800% increase, and despite selling some shares last year, it remains the largest holding in his portfolio, indicating his ongoing confidence in the company.
- Coca-Cola's Long-Term Investment: Buffett has owned Coca-Cola stock since the late 1980s, making it the fourth-largest holding in his portfolio; its strong brand and global distribution network ensure steady earnings growth, complemented by over 50 years of dividend increases, showcasing its reliability.
- American Express's Robust Performance: Buffett's investment in American Express dates back to the 1960s, and it is now the second-largest holding in his portfolio, with 2023 revenues exceeding $72 billion, demonstrating resilience during economic fluctuations and making it a solid long-term investment choice.
- Buffett's Investment Wisdom: Buffett emphasizes long-term investing and selecting quality companies, with Apple, Coca-Cola, and American Express exemplifying this principle, allowing investors to adopt his strategy of choosing firms with competitive advantages for steady growth.
See More
Berkshire Hathaway Enters New Era Post-Buffett Retirement
- New CEO Transition: With Warren Buffett retiring on December 31, Greg Abel officially took over the day-to-day operations and the $319 billion investment portfolio of Berkshire Hathaway on January 1, marking a significant governance shift, as Abel vows to uphold Buffett's investment philosophy.
- Expansion of 'Forever' Holdings: In his first letter to shareholders, Abel announced the inclusion of Moody's and Apple into Berkshire's 'forever' holdings, with Moody's being the third-longest-held stock since 2000, boasting a 41% annual yield, showcasing its resilience in economic fluctuations.
- Valuation Considerations for Apple: While Abel considers Apple a long-term investment, the decision raises eyebrows given Buffett's sale of 75% of Berkshire's Apple shares prior to retirement, especially with Apple's current P/E ratio at 33.4, reflecting a commitment to value investing.
- Impact of Share Buybacks: Since 2013, Apple has repurchased over $841 billion in shares, reducing its outstanding shares by 44%, a strategy that has significantly boosted earnings per share, indicating that Abel's decisions may influence Berkshire's stake in Apple, reflecting sensitivity to market dynamics.
See More
Coca-Cola and S&P Global's Dividend Growth Potential
- Coca-Cola's Stability: Coca-Cola has raised its dividends for 64 consecutive years, and despite a decline in global beverage consumption, it has diversified its product portfolio and maintained a capital-light business model, achieving a 5% organic revenue growth in 2025, with a forecasted growth of 4%-5% in 2026, demonstrating strong cash flow and ongoing dividend payment capacity.
- Dividend Yield and Valuation: With a current dividend yield of 2.6% and a low payout ratio of 67%, Coca-Cola has ample room to increase dividends in the future; at a stock price of $78, it trades at a reasonable P/E ratio of 24, making it suitable for long-term holding.
- S&P Global's Resilience: S&P Global has raised its dividends for 53 consecutive years, and although its yield is only 0.9%, its stable growth in financial data and analytics services allows it to weather economic fluctuations, with adjusted EPS growing 14% in 2025 and expected growth of 9%-10% in 2026.
- Business Restructuring and Future Outlook: S&P Global plans to spin off its automotive data business later this year to streamline operations and enhance profitability; with a current stock price of $448 and a P/E ratio of 23, it presents an attractive option for investors seeking stability.
See More
