Zacks Premium offers investment research tools including the Zacks Rank and Style Scores to help investors identify high-performing stocks. The Zacks Rank #1 stocks have averaged +23.86% annual returns since 1988, more than double the S&P 500. The article highlights Vita Coco Company as a stock to watch with strong growth prospects.

Vita Coco Company (COCO) is highlighted as a stock to watch with a #3 (Hold) Zacks Rank and a VGM Score of B. The company, a leading coconut water brand in the US, shows strong momentum with shares up 12.3% over the past four weeks and an A-rated Momentum Style Score. One analyst revised earnings estimates upward for fiscal 2026, with the consensus estimate at $1.96 per share and an average earnings surprise of +21.9%.

Vita Coco Company (COCO) closed down 1.82% on October 2, 2026, underperforming the broader market which gained 0.73%. Despite strong expected earnings growth of 27.5% EPS and 28.2% revenue growth, the stock carries a Zacks Rank #4 (Sell) rating with a Forward P/E of 29.27, trading at a premium to its industry average of 17.27.

Monster Beverage's international sales jumped 34.6% to $1.16B in Q2 2026, now representing 46% of total sales. Strong growth in EMEA (27.2%), Asia-Pacific (35.7%), and Latin America (56.1%) is driven by product innovation, cooler placements, and Coca-Cola bottler partnerships. However, lower overseas margins and inflation in aluminum, freight, and fuel pose challenges. The stock trades at a premium 36.59X forward P/E, well above the industry average of 19.32X.

Darling Ingredients is expanding its collagen business within its Food segment, capitalizing on growing demand across the US, Europe, and Asia. Collagen generates 2.5-3x the margins of gelatin and targeted ingredients reach 7-11x gelatin margins. Collagen's contribution to Food-segment adjusted EBITDA is projected to grow from 48% in 2025 to 50% by 2030, with targeted ingredients expected to add 15% by 2030. The company, which produces about 30% of the world's collagen, is well-positioned to benefit from this higher-margin product mix shift.

The Chefs' Warehouse improved its Q2 gross margin by 49 basis points to 25.1% through investments in pricing teams, procurement capabilities, and AI-based technology. Despite 4.9% net product cost inflation, the company achieved 15.2% gross profit growth, outpacing 12.9% net sales growth. The stock has surged 62.2% over the past year.

Colgate-Palmolive (CL) is addressing weak North America performance in Q2 2026 caused by soft category trends, competitive pressure, and retailer destocking. The company plans to boost premium toothpaste products, expand Fabuloso, increase advertising spending, and implement targeted pricing to drive market-share recovery in the second half of 2026. Management expects sequential improvement but cautioned recovery will be uneven and dependent on consumer demand health.

ScottsMiracle-Gro (SMG) redeemed $250 million in senior notes, renewed a $750 million receivables facility, and initiated a $500 million share repurchase program with $25 million repurchased in August 2026. The company achieved its $275 million free cash flow target and expects to reduce leverage to the high-3x range, reaffirming fiscal 2026 guidance while focusing on operational excellence and its SMG 2.0 growth strategy.

Vita Coco Company shares rose 5.8% to $55.03 on strong volume, driven by robust demand for its coconut water brand, rising household penetration, and healthy category growth. The company expects Q earnings of $0.51 per share (+27.5% YoY) and revenues of $233.73 million (+28.2% YoY). However, with no change in consensus EPS estimates over the past 30 days, sustained momentum may depend on continued execution and earnings estimate revisions.

With consumer sentiment hitting a 9-year low amid surging inflation and geopolitical tensions, investors are advised to consider defensive stocks from consumer staples and healthcare sectors. Four recommended stocks are Archer-Daniels-Midland (ADM), The Vita Coco Company (COCO), Amgen (AMGN), and Centene Corporation (CNC), all showing strong earnings growth and improved analyst estimates.

Vita Coco Company (COCO) closed at $52.01, up 1.78%, outperforming the S&P 500's 0.86% gain. The company holds a Zacks Rank #1 (Strong Buy) rating with anticipated Q earnings of $0.51 per share (+27.5% YoY) and revenue of $233.73 million (+28.2% YoY). Full-year estimates project $1.96 EPS and $802.62 million revenue. However, COCO trades at a Forward P/E of 26.04, above its industry average of 17.84, though its PEG ratio of 0.96 suggests reasonable valuation relative to growth expectations.

Sysco Corporation announced a multi-year AI-powered efficiency program targeting at least $500 million in cost savings by fiscal 2029. The company reaffirmed its fiscal 2027 outlook with net sales growth of 6-7% and adjusted EPS growth of 9-11%, while raising fiscal 2028-2029 guidance. AI initiatives will focus on truck routing, warehouse productivity, procurement, and back-office automation.