Primo Brands Corporation PRMB is showing improving business momentum, prompting management to raise its 2026 comparable net sales growth outlook for the second consecutive quarter. The company now expects growth of 2-4%, up from the previous 1-3% range, reflecting stronger-than-expected second-quarter performance and broader momentum across retail and direct delivery. In the second quarter, comparable net sales increased 4.2% year over year to $1.8 billion, marking the second straight quarter of growth, while adjusted EBITDA advanced 5% to $385 million.
PRMB’s growth prospects are being supported by strength across its retail portfolio and improving trends in direct delivery. Retail growth remained broad-based, with regional spring water sales rising 4.1%, purified water increasing 1.9%, and premium brands surging 30.5%. Expanded distribution also helped the company gain both value and volume share in the bottled-water category. Meanwhile, direct delivery returned to growth earlier than expected, aided by strong new customer additions, fewer customer quits and improving service levels. Management is also targeting further opportunities in premium water and cold and immediate-consumption channels.
However, sustaining the current growth trajectory will depend on PRMB’s ability to balance investment and cost pressures with continued operating improvements. Higher transportation expenses, including tighter freight markets and elevated spot rates, remain a headwind, while commodity inflation could also pressure profitability. Management plans to counter these challenges through disciplined pricing, productivity initiatives, supply-chain efficiencies and financial risk-management measures. At the same time, investments in customer service, technology, AI and warehouse systems are intended to strengthen execution and support longer-term growth, although some initiatives remain at an early stage.
PRMB’s Zacks Rank & Share Price Performance
Shares of this Zacks Rank #3 (Hold) company have lost 14.9% in the past three months, underperforming the industry and the broader Consumer Staples sector’s decline of 1.6% and 0.4%, respectively.
PRMB Stock's Past Three-Month Performance
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Is PRMB a Value Play Stock?
PRMB currently trades at a forward 12-month P/E ratio of 14.71X, lower than the industry average of 19.18X and the sector average of 16.76X. This valuation positions the stock at a modest discount relative to both its direct peers and the broader consumer staples sector.
PRMB P/E Ratio (Forward 12 Months)
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Stocks to Consider
The Vita Coco Company, Inc. COCO, a leading beverage company that develops, markets and distributes coconut water and other plant-based beverages, currently sports a Zacks Rank #1 (Strong Buy). COCO delivered a trailing four-quarter earnings surprise of 21.9%, on average. You can see the complete list of today’s Zacks #1 Rank stocks here.
The Zacks Consensus Estimate for The Vita Coco Company’s current fiscal-year sales and earnings per share (EPS) calls for growth of 31.6% and 64.7%, respectively, from the year-ago figures.
Darling Ingredients Inc. DAR, a global developer and producer of sustainable natural ingredients derived from edible and inedible bio-nutrients, currently carries a Zacks Rank of 2 (Buy).
The Zacks Consensus Estimate for Darling’s current fiscal-year sales suggests an 11.5% jump from the prior-year levels. The consensus estimate for current fiscal-year EPS stands at $6.98, which implies a substantial improvement from the year-ago period. DAR delivered a trailing four-quarter earnings surprise of 38.9%, on average.
The Chefs' Warehouse, Inc. CHEF distributes specialty food and center-of-the-plate products in the United States, the Middle East and Canada. At present, CHEF flaunts a Zacks Rank #1.
The consensus estimate for Chefs' Warehouse’s current fiscal-year sales and earnings implies growth of 10.6% and 33.7%, respectively, from the year-ago reported figures. Chefs' Warehouse delivered a trailing four-quarter earnings surprise of 30.4%, on average.
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Primo Brands Corporation (PRMB): Free Stock Analysis Report
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The Chefs' Warehouse, Inc. (CHEF): Free Stock Analysis Report
This article originally published on Zacks Investment Research (zacks.com).