Looking back on beverages, alcohol, and tobacco stocks’ Q2 earnings, we examine this quarter’s best and worst performers, including Zevia (NYSE: ZVIA) and its peers.

These companies' performance is influenced by brand strength, marketing strategies, and shifts in consumer preferences. Changing consumption patterns are particularly relevant and can be seen in the rise of cannabis, craft beer, and vaping or the steady decline of soda and cigarettes. Companies that spend on innovation to meet consumers where they are with regards to trends can reap huge demand benefits while those who ignore trends can see stagnant volumes. Finally, with the advent of the social media, the cost of starting a brand from scratch is much lower, meaning that new entrants can chip away at the market shares of established players.

The 15 beverages, alcohol, and tobacco stocks we track reported a strong Q2. As a group, revenues beat analysts’ consensus estimates by 2.1% while next quarter’s revenue guidance was 1% below.

In light of this news, share prices of the companies have held steady as they are up 2.1% on average since the latest earnings results.

Zevia (NYSE: ZVIA)

With a primary focus on soda but also a presence in energy drinks and teas, Zevia (NYSE: ZVIA) is a better-for-you beverage company.

Zevia reported revenues of $44.52 million, up 10.1% year on year. This print exceeded analysts’ expectations by 6.6%. Overall, it was a stunning quarter for the company with EBITDA guidance for next quarter exceeding analysts’ expectations and a beat of analysts’ EPS estimates.

Unsurprisingly, the stock is down 28.8% since reporting and currently trades at $2.45.

Is now the time to buy Zevia? Access our full analysis of the earnings results here, it’s free.

Best Q2: Celsius (NASDAQ: CELH)

With its proprietary MetaPlus formula as the basis for key products, Celsius (NASDAQ: CELH) offers energy drinks that feature natural ingredients to help in fitness and weight management.

Celsius reported revenues of $739.3 million, up 83.9% year on year, outperforming analysts’ expectations by 14%. The business had an incredible quarter with a beat of analysts’ EPS and EBITDA estimates.

Celsius achieved the biggest analyst estimates beat and fastest revenue growth among its peers. The market seems happy with the results as the stock is up 31.5% since reporting. It currently trades at $56.35.

Is now the time to buy Celsius? Access our full analysis of the earnings results here, it’s free.

Weakest Q2: Tilray (NASDAQ: TLRY)

Founded in 2013, Tilray Brands (NASDAQ: TLRY) engages in cannabis research, cultivation, and distribution, offering a range of medical and recreational cannabis products, hemp-based foods, and alcoholic beverages.

Tilray reported revenues of $224.5 million, down 2.3% year on year, falling short of analysts’ expectations by 2%. It was a slower quarter as it posted a significant miss of analysts’ gross margin estimates and a significant miss of analysts’ EPS estimates.

Tilray delivered the weakest performance against analyst estimates in the group. Interestingly, the stock is up 53.6% since the results and currently trades at $1.07.

Read our full analysis of Tilray’s results here.

Altria (NYSE: MO)

Best known for its Marlboro brand of cigarettes, Altria (NYSE: MO) offers tobacco and nicotine products.

Altria reported revenues of $5.29 billion, flat year on year. This print topped analysts’ expectations by 1.8%. More broadly, it was a satisfactory quarter as it also logged a decent beat of analysts’ EBITDA estimates but a significant miss of analysts’ gross margin estimates.

The stock is up 11.9% since reporting and currently trades at $66.45.

Read our full, actionable report on Altria here, it’s free.

Monster (NASDAQ: MNST)

Founded in 2002 as a natural soda and juice company, Monster Beverage (NASDAQ: MNST) is a pioneer of the energy drink category, and its Monster Energy brand targets a young, active demographic.

Monster reported revenues of $2.11 billion, up 11.1% year on year. This result surpassed analysts’ expectations by 1.4%. Overall, it was a strong quarter as it also put up a solid beat of analysts’ EBITDA estimates and a decent beat of analysts’ adjusted operating income estimates.

The stock is up 4.9% since reporting and currently trades at $63.84.

Read our full, actionable report on Monster here, it’s free.

Market Update

The Fed’s interest rate hikes throughout 2022 and 2023 have successfully cooled post-pandemic inflation, bringing it closer to the 2% target. Inflationary pressures have eased without tipping the economy into a recession, suggesting a soft landing. This stability, paired with recent rate cuts (0.5% in September 2024 and 0.25% in November 2024), fueled a strong year for the stock market in 2024. The markets surged further after Donald Trump’s presidential victory in November, with major indices reaching record highs in the days following the election. Still, questions remain about the direction of economic policy, as potential tariffs and corporate tax changes add uncertainty for 2025.

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