Primo Brands Corporation PRMB continues to prioritize premiumization as an important growth vector, with Saratoga and Mountain Valley remaining key contributors to business performance. In the first quarter of 2026, the two premium brands delivered impressive growth of 43%. The company also highlighted that both brands increased their volume and dollar share within their category in the first quarter, reflecting sustained momentum and the effectiveness of the company's premium-focused growth strategy.
Primo Brands continues to invest in its premium brands through product launches, marketing partnerships and capacity expansion. The company believes that Saratoga and Mountain Valley remain early in their growth trajectory, supported by expanding distribution, strong brand equity and additional production capacity. The company is also advancing a more strategic revenue growth management approach across price points, package types and distribution channels.
The company expanded the availability of its regional Spring Waters portfolio through Amazon Grocery, creating an opportunity to reach a broader customer base. It expects this initiative to increase household penetration, strengthen brand awareness, expand its share of the virtual shelf on the platform and support customer acquisition by attracting shoppers.
Primo Brands believes that it operates in an attractive category that continues to benefit from favorable health, wellness and hydration trends. It noted that the category is highly penetrated, frequently purchased and among the fastest-growing segments within liquid refreshment beverages. The company also highlighted its leadership position in branded water and healthy hydration, while maintaining a significant presence across the broader liquid refreshment beverage category.
Overall, Primo Brands' premium-focused strategy, expanding distribution and disciplined execution reinforce its long-term growth outlook, while positioning it to capitalize on category momentum and drive sustained long-term growth.
The Zacks Rundown for PRMB
PRMB shares have gained 23.5% in the past three months compared with the industry’s growth of 3.3%. The company currently carries a Zacks Rank #3 (Hold).
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From a valuation standpoint, PRMB trades at a forward price-to-earnings ratio of 18.38X, lower than the industry’s average 18.99X.
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The Zacks Consensus Estimate for PRMB’s current fiscal-year earnings is expected to be flat year over year, and the same for next fiscal-year earnings implies a rise of 16.3%.
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Stocks to Consider
Some better-ranked stocks have been discussed below:
Fomento Económico Mexicano, S.A.B. de C.V. FMX operates as a franchise bottler of Coca-Cola trademark beverages worldwide. FMX currently sports a Zacks Rank #1 (Strong Buy). You can see the complete list of today’s Zacks #1 Rank stocks here.
The Zacks Consensus Estimate for FMX's current fiscal-year sales and earnings indicates growth of 17.3% and 131%, respectively. FMX delivered a trailing four-quarter negative earnings surprise of nearly 17%, on average.
Black Rock Coffee Bar, Inc. BRCB offers classic espresso-based drinks, energy drinks, and savory and sweet items under the all-day breakfast brand. BRCB currently carries a Zacks Rank #2 (Buy).
The Zacks Consensus Estimate for BRCB’s current fiscal-year sales implies growth of 26.6% from the year-ago actuals. BRCB delivered a trailing four-quarter earnings surprise of 20.8%, on average.
The Vita Coco Company, Inc. COCO develops, manufactures, markets and distributes coconut water products under the Vita Coco brand name. COCO currently carries a Zacks Rank #2.
The Zacks Consensus Estimate for COCO's current fiscal-year sales and earnings implies growth of 22.3% and 48.7%, respectively, from the year-ago actuals. COCO delivered a trailing four-quarter earnings surprise of 11.7%, on average.
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Primo Brands Corporation (PRMB): Free Stock Analysis Report
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Fomento Economico Mexicano S.A.B. de C.V. (FMX): Free Stock Analysis Report
Black Rock Coffee Bar, Inc. (BRCB): Free Stock Analysis Report
This article originally published on Zacks Investment Research (zacks.com).