Will Pepsi (PEP) Satisfy Wall Street With Its Q2 Results?

What's Happening With PEP View more about PEP >

Soft drink maker PepsiCo (PEP) reports its second-quarter numbers before the market open July 9. Analysts forecast earnings of $1.49 per share on revenue of $16.42 billion. During the same period last year Pepsi earned $1.61 on sales of $16.1 billion.

Technical Analysis

PEP was recently trading at $133.56 down $1.68 from its 12-month high and $29.03 above its 12-month low. InvestorsObserver’s Stock Score Report gives PEP a 88 long-term technical score and a 85 short-term technical score. The stock has recent support above $130 and recent resistance below $135. Of the 17 analysts who cover the stock 7 rate it Strong Buy, 0 rate it Buy, 10 rate it Hold, 0 rate it Sell, and 0 rate it Strong Sell, PEP gets a score of 67 from InvestorsObserver’s Stock Score Report.

Analysts' Thoughts

Pepsi stock has been a strong performer in 2019, with shares currently up 20.9% on the year. Despite the strong stock gains, PEP is still trading at a very reasonable 15 times earnings. PEP is not a fast growth story, but earnings have risen 4.5% annually over the last five years, and analysts expect more of the same moving forward with forecast annual growth of 4.7% for the next five years. Last quarter Pepsi topped estimates on both the top and bottom line, and the street expects another earnings beat this quarter with a whisper number of $1.53. Analysts have an average price target of $125.71 on the stock, but a positive earnings surprise could lead to target hikes to allow PEP shares to build on their recent gains.

PEP
About PepsiCo Inc.

PepsiCo manufactures and distributes nonalcoholic beverages, grain-based foods, and a variety of snacks. Its key brands include Pepsi, Gatorade, Mountain Dew, Tropicana, Quaker, Lay's, Doritos, and Cheetos. The firm receives a slight majority of revenue from food, with Frito-Lay North America (around one fourth of sales) contributing above 40% of operating profit. It distributes its products through direct-store-delivery and customer warehouse systems, as well as third-party networks. Pepsi generates 57% of its revenue in the United States.

  • Last Price:
    $132.78
  • Previous Close:
    $133.80
  • Change:
    $-1.02 (-0.76%)
  • Open:
    $133.92
  • Volume:
    3,774,386
  • Average Volume (100 Day):
    4,599,922
  • Market Capitalization:
    $185.6 B
  • Day's Range:
    $132.47 - $134.28
  • Dividend Yield:
    2.86%
  • 52-week Range:
    $135 - $104.53
  • P-E:
    14.90
  • EPS:
    $9.00
  • Earnings Date:
    10/1/19
  • Ex Dividend Date:
    9/5/19
  • Sector:
    Consumer Defensive
  • Industry:
    Beverages - Soft Drinks
  • Analyst Average Recommendation:
    Moderate Buy

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