Wall Street has clearly chosen Coca-Cola over PepsiCo as its favorite beverage stock this year. Coca-Cola stock has ripped 23% higher this year, making it the eighth-best performer on the Dow, while PepsiCo shares have tanked by 13% and now hover near a 52-week low. PepsiCo's earnings report on Thursday is a critical one, with the company promising stronger snacking results after price cuts and that its aggressive cost cuts will show up in profits. Several Wall Street shops, including Evercore ISI and JPMorgan, have cut their profit estimates for PepsiCo ahead of the results, as higher inflation stands to pressure any cost savings. Evercore ISI analyst Robert Ottenstein said investors are concerned by share losses in North America Beverages, with brand Pepsi flat over the third quarter versus brand Coke up 7%, and lackluster trends in PepsiCo Foods North America.
PepsiCo IncPepsiCo faces share losses in North America Beverages and lackluster Foods trends, with analysts cutting profit estimates ahead of earnings.
The Coca-Cola CompanyCoca-Cola is Wall Street's favored soda stock, with brand Coke up 7% while Pepsi brand is flat, signaling share gains over PepsiCo.
