The Vita Coco Company, Inc. (COCO): A Bull Case Theory

We came across a bullish thesis on The Vita Coco Company, Inc. (COCO) on Hidden Market Gems’ Substack. In this article, we will summarize the bulls’ thesis on COCO. The Vita Coco Company, Inc. (COCO)’s share was trading at $33.19 as of 11^th June. COCO’s trailing and forward P/E were 33.49 and 28.82 respectively according to Yahoo Finance.

Vita Coco Company (NASDAQ: COCO), a leading player in the natural beverage space, is shaping up to be an underappreciated growth story with significant upside potential. Despite a recent dip in quarterly sales, the company surprised the market by raising its financial outlook for 2024, signalling strong confidence in its operational resilience and underlying demand trends.

At a trading price of $33.19, the stock remains meaningfully undervalued compared to its estimated fair value of $57.09, offering a compelling entry point for investors. The broader macro tailwinds in the health and wellness beverage market continue to strengthen, as consumers increasingly favor natural, low-calorie hydration options over traditional sugary drinks. Vita Coco stands to benefit significantly from this shift, not just because of its strong brand identity and distribution network, but also due to its disciplined execution in a challenging retail environment.

The recent disconnect between fundamentals and share price performance reflects temporary market misperception rather than long-term weakness. With a refreshed strategic focus and a product that resonates with both health-conscious and mainstream consumers, Vita Coco is well-positioned to ride the wave of natural beverage adoption.

As earnings visibility improves and sentiment around the sector rebounds, COCO could see a re-rating closer to its intrinsic value. For investors seeking a growth story with improving fundamentals and clear catalysts, Vita Coco offers an attractive risk/reward profile anchored in a secularly growing category.

Previously, we covered a bullish thesis on PepsiCo (PEP) in May 2025 by Charts&Companies that emphasized its undervaluation relative to Coca-Cola, highlighting a more diversified business model, stronger adjusted free cash flow growth, and a lower PEG ratio. While PEP offers defensive value and yield through its mature snack-beverage mix, COCO presents a higher-growth, higher-risk opportunity riding secular wellness trends—an intriguing contrast between legacy strength and emerging potential.

The Vita Coco Company, Inc. (COCO) is not on our list of the 30 Most Popular Stocks Among Hedge Funds. As per our database, 18 hedge fund portfolios held COCO at the end of the first quarter which was 20 in the previous quarter. While we acknowledge the risk and potential of COCO as an investment, our conviction lies in the belief that some AI stocks hold greater promise for delivering higher returns and have limited downside risk. If you are looking for an extremely cheap AI stock that is also a major beneficiary of Trump tariffs and onshoring, see our free report on the best short-term AI stock.

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Disclosure: None. This article was originally published at Insider Monkey.