As the craze of earnings season draws to a close, here’s a look back at some of the most exciting (and some less so) results from Q2. Today, we are looking at beverages, alcohol, and tobacco stocks, starting with Tilray (NASDAQ: TLRY).

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.

Thankfully, share prices of the companies have been resilient as they are up 6.7% on average since the latest earnings results.

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. This print fell short of analysts’ expectations by 2%. Overall, it was a slower quarter for the company with a significant miss of analysts’ gross margin and EPS estimates.

Irwin D. Simon, Chairman and Chief Executive Officer, stated, “In Fiscal Year 2025, we meaningfully advanced our platform, driving growth in all of our sectors, cannabis, beverage, and wellness. Our progress is rooted in a deep understanding of evolving consumer needs, shaping offerings that not only reflect, but anticipate how people choose to eat, drink, relax, and address their wellbeing. We increased revenue, enhanced efficiency, and boosted gross profit across all our businesses. Our continued investment in growth led to record fiscal year revenue, underscoring the resilience and durability of our strategy.”

Tilray delivered the weakest performance against analyst estimates of the whole group. Interestingly, the stock is up 66.5% since reporting and currently trades at $1.16.

Read our full report on Tilray 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 estimates and a solid beat of analysts’ EBITDA estimates.

Celsius delivered the biggest analyst estimates beat and fastest revenue growth among its peers. The market seems happy with the results as the stock is up 32.4% since reporting. It currently trades at $56.76.

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

Constellation Brands (NYSE: STZ)

With a presence in more than 100 countries, Constellation Brands (NYSE: STZ) is a globally renowned producer and marketer of beer, wine, and spirits.

Constellation Brands reported revenues of $2.52 billion, down 5.5% year on year, falling short of analysts’ expectations by 1.5%. It was a slower quarter as it posted a miss of analysts’ EBITDA estimates and a miss of analysts’ gross margin estimates.

Interestingly, the stock is up 2.1% since the results and currently trades at $169.90.

Read our full analysis of Constellation Brands’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 result surpassed analysts’ expectations by 1.8%. More broadly, it was a satisfactory quarter as it also recorded a decent beat of analysts’ EBITDA estimates but a significant miss of analysts’ gross margin estimates.

The stock is up 10.5% since reporting and currently trades at $65.65.

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

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 beat analysts’ expectations by 6.6%. It was a stunning quarter as it also produced EBITDA guidance for next quarter exceeding analysts’ expectations and a beat of analysts’ EPS estimates.

The stock is down 12.5% since reporting and currently trades at $3.01.

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

Market Update

As a result of the Fed’s rate hikes in 2022 and 2023, inflation has come down from frothy levels post-pandemic. The general rise in the price of goods and services is trending towards the Fed’s 2% goal as of late, which is good news. The higher rates that fought inflation also didn't slow economic activity enough to catalyze a recession. So far, soft landing. This, combined with recent rate cuts (half a percent in September 2024 and a quarter percent in November 2024) have led to strong stock market performance in 2024. The icing on the cake for 2024 returns was Donald Trump’s victory in the U.S. Presidential Election in early November, sending major indices to all-time highs in the week following the election. Still, debates around the health of the economy and the impact of potential tariffs and corporate tax cuts remain, leaving much uncertainty around 2025.

Want to invest in winners with rock-solid fundamentals? Check out our Strong Momentum Stocks and add them to your watchlist. These companies are poised for growth regardless of the political or macroeconomic climate.

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