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Investing.com -- Bank of America has identified six consumer staples stocks as top picks heading into first-quarter earnings season, with beverage giant Coca-Cola leading the list amid upcoming leadership commentary and World Cup sponsorship opportunities.
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The investment bank’s selections span categories from beverages to packaged foods and household products, with analysts highlighting specific catalysts and earnings expectations for each company as reporting season approaches.
1. The Coca-Cola Company (NYSE:KO) - Rated Buy, the beverage giant reports first-quarter 2026 results pre-market on April 28. Bank of America maintains an earnings per share estimate of $0.79, below consensus of $0.81, alongside a unit case volume forecast of negative 0.2% year-over-year.
The firm projects total company organic sales growth of 5.8%, with gross margin of 63.1% and operating margin of 34.3%. Key focus areas include potential World Cup benefits as a global sponsor, updates on CCBA refranchising efforts, and IRS tax litigation. This marks the first conference call for new CEO Henrique Braun, who assumed his role on April 1.
Recently, The Coca-Cola Company announced that its Sprite brand will return as the NBA’s official global soft drink partner. The company also received a lowered price target from Jefferies, citing cost pressures, while Piper Sandler reiterated its Overweight rating.
2. The Vita Coco Company, Inc. (NASDAQ:COCO) - Bank of America assigns a $60 price objective based on 23.5 times 2027 estimated enterprise value to EBITDA. The firm values shares at a premium versus peers given potential for strong sales and profit growth.
Upside risks include faster-than-expected ocean freight rate declines and strong category growth. Downside risks involve potential tariff returns on coconuts and rising ocean freight rates.
The Vita Coco Company received price target increases from both Evercore ISI and Morgan Stanley, with Evercore ISI citing strong scanner sales data and Morgan Stanley raising its adjusted EBITDA estimates for fiscal years 2026 and 2027.
3. Mondelez International Inc. (NASDAQ:MDLZ) - Rated Buy, the company reports first-quarter results post-close on April 28. Bank of America maintains earnings estimates of $0.60 per share for the first quarter and $3.02 for fiscal 2026, compared to consensus of $0.61 and $3.03, respectively. The firm raised its price objective to $65 from $62, based on 19.5 times 2027 earnings estimates.
Mondelez International was downgraded to Neutral by Rothschild Redburn due to concerns over softening volumes, while Stifel maintained its Buy rating. The company also outlined its long-term strategy to revitalize growth in developed markets at a recent conference.
4. Smithfield Foods (NASDAQ:SFD) - Rated Buy, the company reports first-quarter results pre-open on April 28. Bank of America maintains adjusted EBITDA estimates of $393 million and earnings per share of $0.58, compared to consensus of $407 million and $0.61. The firm raised its price objective to $33 from $32.
In its fourth-quarter 2025 results, Smithfield Foods reported earnings per share of $0.83 on revenue of $4.23 billion, exceeding market expectations.
5. Colgate-Palmolive (NYSE:CL) - Rated Buy, Bank of America lowered its fiscal 2026 adjusted earnings estimate to $3.80 from $3.90, reflecting foreign exchange impacts, North America toothpaste launch timing changes, and rising oil costs. The firm lowered its price objective to $102 from $105.
Colgate-Palmolive received a rating upgrade to Buy from Deutsche Bank, while TD Cowen downgraded the company to Hold, citing inflationary pressure. The company also announced a leadership transition in its legal department and an update to its segment reporting structure.
6. Church & Dwight (NYSE:CHD) - Rated Buy, the company reports first-quarter results pre-market on May 1. Bank of America maintains its earnings estimate at $0.92, expecting organic sales growth of 3.1% with volumes up 1.9% and pricing up 1.1%.
Church & Dwight reported fourth-quarter earnings per share of $0.86, slightly ahead of consensus estimates. Following the results, the company received rating upgrades to Neutral from both JPMorgan and Rothschild Redburn, along with price target increases from UBS and TD Cowen.
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