Stephen Powers, UBS household products analyst, told CNBC's "Squawk on the Street" on Tuesday that Coke and Pepsi have good fundamental trends, and foreign exchange headwinds are easing.
"We're seeing a bit of sequential easing in the FX environment, which I think in conjunction with the cost savings, provides some upside to current estimates," Powers said.
John Faucher, JPMorgan senior beverages analyst, agreed.
"Investors have ignored these stocks the past three or four years, more Coke than Pepsi, because FX has really hurt the underlying results. As the FX rolls off, earnings growth will accelerate," said Faucher.