Four Consumer Staples Champions Ready for Earnings: Celsius and Peers Poised for Outperformance

As earnings season accelerates, savvy investors are channeling attention toward the Consumer Staples sector—a traditionally defensive arena that becomes increasingly attractive when macroeconomic headwinds intensify. The inherent resilience of staple stocks stems from the consistent demand for essential products: food, beverages, household necessities and personal care items remain purchase priorities regardless of economic cycles. Even as higher interest rates temper discretionary spending and consumer sentiment wavers, demand for these fundamentals persists. According to the latest Zacks Earnings Preview, the Consumer Staples sector is projected to achieve 2.4% revenue growth while bottom-line earnings face a 2.4% decline. Yet beneath these aggregate figures lie compelling opportunities for disciplined operators that have successfully managed cost pressures and maintained pricing power.

Navigating Headwinds: How These Staple Players Are Stabilizing Margins

The current operating environment tests the mettle of Consumer Staples companies through multiple pressures simultaneously. Elevated input costs, evolving consumer preferences and heightened price sensitivity create a challenging backdrop. Tariffs and trade-related levies on imported raw materials, packaging components and intermediate goods have intensified cost structures, especially for companies maintaining global supply chains.

However, leading players have deployed targeted mitigation strategies. By diversifying sourcing options, localizing production capabilities where feasible and renegotiating supplier arrangements, many have offset these incremental expenses. Simultaneously, improvements in logistics efficiency, enhanced freight cost visibility and disciplined inventory management have begun stabilizing overall cost dynamics.

The strategic response extends beyond cost controls. By leveraging brand strength, accelerating innovation and executing targeted price increases in essential and premium-tier categories, staple companies have largely preserved demand while supporting margins. Market indicators now suggest that the most acute margin compression may be moderating, with volume conditions stabilizing and input cost clarity improving—a favorable setup heading into earnings.

The Hershey Company: Confectionery Strength Meets Portfolio Diversification

The Hershey Company (HSY) commands strong brand equity and has maintained disciplined pricing across its core confectionery offerings. Beyond traditional chocolate products, the company systematically expands into salty snacks and better-for-you categories, reducing portfolio concentration risk. Recent productivity initiatives and favorable product mix management have cushioned the impact of input cost and trade-related challenges.

Hershey’s operational foundation remains solid: robust retailer relationships, disciplined execution and sustained consumer demand for branded products create a compelling backdrop for earnings performance. The company carries an Earnings ESP of +0.78% and holds a Zacks Rank #1 (Strong Buy designation). The Zacks Consensus Estimate for fourth-quarter fiscal 2025 EPS stands at $1.40, unchanged over the past month. Notably, Hershey has delivered a trailing four-quarter average earnings surprise of approximately 15%, demonstrating consistent execution against expectations.

Estee Lauder’s Prestige Recovery: Beauty Giant Sharpens Execution

The Estee Lauder Companies (EL) merits close attention amid a multi-year strategic transformation aimed at restoring sustainable expansion and operational sharpness. Management has prioritized its most powerful brands, accelerated innovation pipelines and strengthened digital and social commerce capabilities. The organization is being streamlined to enhance decision velocity and operational agility.

Skincare and fragrance remain core growth engines, supported by deep global brand recognition and innovation reserves. As consumer demand stabilizes across key geographies, Estee Lauder’s scale, prestige positioning and renewed management focus position it favorably for growth acceleration. The beauty giant currently shows an Earnings ESP of +6.62% and carries a Zacks Rank #2 (Buy). The Zacks Consensus Estimate for second-quarter fiscal 2026 EPS has moved upward from 80 to 83 cents over the past 30 days—a positive revision signaling increasing confidence. The company has posted a trailing four-quarter average earnings surprise of 82.6%, indicating a strong track record of surpassing consensus.

Celsius Holdings: Energy Beverage Innovation Driving Market Share Gains

Celsius Holdings, Inc. (CELH) stands at the forefront of the high-growth energy beverage category through strategic brand development and category expansion. The company prioritizes demand stimulation via continuous innovation, expanded distribution channels and strengthened in-store execution. Strategic partnerships have enhanced shelf placement, merchandising visibility and national reach, while recent portfolio additions enable Celsius to serve multiple consumer segments and occasions.

The Celsius symbol reflects strong brand loyalty and rising consumer awareness. Disciplined operational execution positions the company to expand relevance and capture market share within the rapidly evolving energy category. CELH currently carries an Earnings ESP of +15.27% and a Zacks Rank #3 (Hold), demonstrating solid positioning. The Zacks Consensus Estimate for fourth-quarter 2025 EPS remains unchanged at 19 cents over the past month. Importantly, Celsius Holdings has achieved a trailing four-quarter average earnings surprise of 42.9%—substantially above sector averages—underscoring consistent operational excellence.

Monster Beverage: Lifestyle Brand Expansion Fuels International Growth

Monster Beverage Corporation (MNST) capitalizes on the accelerating global expansion of the energy drink category and maintains a distinctive connection with consumers through lifestyle, sports and music partnerships. The company sustains brand relevance through steady product innovation while maintaining uncompromising quality standards. Its expansive product portfolio addresses diverse consumer needs, occasions and taste preferences, driving repeat consumption and brand loyalty.

International expansion initiatives and localized production strategies strengthen market presence while enhancing operational efficiency. Monster’s operating model—built on disciplined pricing, effective marketing and proven execution—positions the company to capture meaningful growth from category tailwinds. MNST currently shows an Earnings ESP of +17.16% and holds a Zacks Rank #3. The Zacks Consensus Estimate for fourth-quarter fiscal 2025 EPS has risen by one cent to 50 cents in the past 30 days. Monster Beverage has delivered a trailing four-quarter average earnings surprise of 5.5%, reflecting consistent earnings delivery.

Identifying Outperformers: The Earnings ESP and Zacks Rank Formula

Pinpointing clear earnings outperformers with precision remains inherently challenging, yet structured research methodologies substantially improve the odds. The Zacks Stock Screener applies quantitative analysis to identify Consumer Staples candidates positioned to outpace consensus forecasts. Research evidence demonstrates that stocks combining a positive Earnings ESP with a Zacks Rank of #1 (Strong Buy), #2 (Buy) or #3 (Hold) achieve earnings surprise outcomes as frequently as 70% of the time—a statistically significant batting average.

The Earnings ESP metric measures the divergence between analyst consensus forecasts and more recent sell-side estimates, identifying situations where analyst sentiment is diverging favorably from consensus. When paired with Zacks proprietary ranking systems, this metric becomes a powerful tool for identifying stocks on the cusp of surprise moves. By applying disciplined screening criteria and evidence-based metrics, investors can substantially improve their probability of identifying earnings winners before market consensus catches up.

The four Consumer Staples candidates highlighted—Hershey, Estee Lauder, Celsius Holdings and Monster Beverage—each demonstrate the combination of favorable Earnings ESP readings and solid Zacks rankings that correlate with earnings outperformance. Their varied business models, geographic exposures and growth strategies provide diversified exposure to the defensive Consumer Staples complex while maintaining meaningful upside potential through the earnings cycle.