What happened

After sliding during most of the past month on fears that weight-loss drugs like Ozempic would sap some of its demand, Coca-Cola (KO) stock was moving higher in tandem with Pepsico (PEP -0.62%), which reported better-than-expected earnings this morning. This helped to quell some of the concerns around the new weight-loss craze.

As of 11:08 a.m. ET, Coca-Cola stock was up 2% after climbing as much as 2.7% earlier in the session. Pepsico, meanwhile, was up 1.1%.

So what

Pepsi topped estimates on the top and bottom lines, raised its full-year earnings guidance, and said that 2024 results would come in at the high end of its long-term range of 4%-6% revenue growth. It also expects core constant-currency earnings-per-share growth in the high single digits.

Pepsi's revenue rose 6.7% in the quarter, with 6% organic sales growth in its North American beverage division, though beverage volumes were down 6%. International sales were strong, with beverage volumes rising, as well.

These results, including Pepsi's ability to pass along price hikes, seem to bode well for Coca-Cola's earnings report, which will come out later this month. Management also said on the earnings call that it wasn't seeing any impact from weight-loss drugs like Ozempic. 

Last week, both Coca-Cola and Pepsico sold off sharply after a Walmart exec said that Ozempic and similar drugs are starting to have an impact on grocery-shopping habits.

Now what

Good news for Pepsico isn't necessarily good news for Coca-Cola, though the two beverage stocks are subject to similar trends. Unlike Pepsico, which owns food brands like Frito-Lay and Quaker, Coca-Cola only sells beverages, so it's less diversified. We'll learn if Coca-Cola withstood the initial challenge from Ozempic in two weeks when the company reports second-quarter earnings on Oct. 24. 

Analysts are expecting revenue to grow 8.9% to $11.45 billion and for earnings per share to be flat at $0.69. Considering the recent Ozempic-driven sell-off, the bar will likely be low for the company. A modest beat could give the stock another pop.