Coke and Chocolate: 2 Consumer Staples Stocks Defying Tech Trends

Investors seeking alternatives to the AI trade may find opportunities in consumer staples stocks. The Consumer Staples Select Sector SPDR Fund (XLP) has risen about 10% year-to-date, potentially indicating further sector rotation.

Coca-Cola (KO) and Hershey Company (HSY) are two consumer staples stocks that have performed differently this year. KO is up roughly 26%, while HSY is down about 3%.

The Coca-Cola Company's second-quarter results showed the World Cup activation working as intended, with net revenues growing 7% to $13.4 billion and organic revenues climbing 6%. Earnings per share (EPS) jumped 16% to $1.03.

Hershey's strong Q2 earnings report was driven by its investment in salty snacks, which delivered growth of over 20%. The company also reported a 57% year-over-year increase in adjusted EPS and an adjusted gross margin of 41.6%, up from 350 basis points compared to the second quarter of 2025.

Both Coca-Cola and Hershey offer dividend growth potential, with KO being a Dividend King that has increased its dividend for 64 consecutive years. HSY has increased its dividend for 15 consecutive years and offers a higher yield than KO.