Pepsi (PEP, $112.59) meets Q4 expectations, but warns of challenges in 2019
While being able to match analysts’ expectation for the latest quarter’s earnings and revenue, PepsiCo. portends earnings challenges for 2019.
The soft drink behemoth reported fourth quarter earnings of $1.49 per share and revenue of $19.52 billion - both in line with what Wall Street estimated.
Pepsi’s North American beverage market increased +2% - thereby rewarding the company’s advertising investment in the region. The company’s snack business registered +4% organic revenue growth in North America for the quarter.
PepsiCo.’s fiscal fourth-quarter net income came in at $6.85 billion (or $4.83 per share), compared to a loss of -$710 million, (or -50 cents per share) of the year-ago quarter.
However, Pepsi has apparently lowered its hopes for full-year 2019 earnings, owing to currency exchange rates headwinds, increased advertising/marketing expenses, and an expected hike in the effective tax rate to 21 percent from 18.8 percent. It now predicts earnings of $5.50 per share during 2019, down from its 2018 earnings of $5.66 per share. Wall Street had expected earnings of $5.86 a share for 2019 (according to Refinitiv).
But what might be good news for the company’s shareholders is that it announced a +3% dividend increase - to $3.82 from $3.71 - starting June.
PEP in upward trend: price rose above 50-day moving average on November 13, 2025
PEP moved above its 50-day moving average on November 13, 2025 date and that indicates a change from a downward trend to an upward trend. In of 34 similar past instances, the stock price increased further within the following month. The odds of a continued upward trend are .
Technical Analysis (Indicators)
Bullish Trend Analysis
The Momentum Indicator moved above the 0 level on November 17, 2025. You may want to consider a long position or call options on PEP as a result. In of 89 past instances where the momentum indicator moved above 0, the stock continued to climb. The odds of a continued upward trend are .
The Moving Average Convergence Divergence (MACD) for PEP just turned positive on November 17, 2025. Looking at past instances where PEP's MACD turned positive, the stock continued to rise in of 48 cases over the following month. The odds of a continued upward trend are .
The 10-day moving average for PEP crossed bullishly above the 50-day moving average on November 20, 2025. This indicates that the trend has shifted higher and could be considered a buy signal. In of 16 past instances when the 10-day crossed above the 50-day, the stock continued to move higher over the following month. The odds of a continued upward trend are .
Following a 3-day Advance, the price is estimated to grow further. Considering data from situations where PEP advanced for three days, in of 321 cases, the price rose further within the following month. The odds of a continued upward trend are .
PEP may jump back above the lower band and head toward the middle band. Traders may consider buying the stock or exploring call options.
Bearish Trend Analysis
The Stochastic Oscillator may be shifting from an upward trend to a downward trend. In of 64 cases where PEP's Stochastic Oscillator exited the overbought zone, the price fell further within the following month. The odds of a continued downward trend are .
Following a 3-day decline, the stock is projected to fall further. Considering past instances where PEP declined for three days, the price rose further in of 62 cases within the following month. The odds of a continued downward trend are .
The Aroon Indicator for PEP entered a downward trend on November 19, 2025. This could indicate a strong downward move is ahead for the stock. Traders may want to consider selling the stock or buying put options.
The Tickeron PE Growth Rating for this company is (best 1 - 100 worst), pointing to outstanding earnings growth. The PE Growth rating is based on a comparative analysis of stock PE ratio increase over the last 12 months compared against S&P 500 index constituents.
The Tickeron SMR rating for this company is (best 1 - 100 worst), indicating very strong sales and a profitable business model. SMR (Sales, Margin, Return on Equity) rating is based on comparative analysis of weighted Sales, Income Margin and Return on Equity values compared against S&P 500 index constituents. The weighted SMR value is a proprietary formula developed by Tickeron and represents an overall profitability measure for a stock.
The Tickeron Valuation Rating of (best 1 - 100 worst) indicates that the company is slightly undervalued in the industry. This rating compares market capitalization estimated by our proprietary formula with the current market capitalization. This rating is based on the following metrics, as compared to industry averages: PEP's P/B Ratio (10.493) is slightly higher than the industry average of (4.709). P/E Ratio (28.278) is within average values for comparable stocks, (42.188). Projected Growth (PEG Ratio) (5.510) is also within normal values, averaging (5.904). PEP has a moderately high Dividend Yield (0.037) as compared to the industry average of (0.026). P/S Ratio (2.212) is also within normal values, averaging (2.675).
The Tickeron Price Growth Rating for this company is (best 1 - 100 worst), indicating steady price growth. PEP’s price grows at a higher rate over the last 12 months as compared to S&P 500 index constituents.
The Tickeron Profit vs. Risk Rating rating for this company is (best 1 - 100 worst), indicating well-balanced risk and returns. The average Profit vs. Risk Rating rating for the industry is 70, placing this stock slightly better than average.
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General Information
a provider of a diversified line of soft drinks and snack foods
Industry BeveragesNonAlcoholic
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