Pepsi (PEP, $132.56) beats Q2 earnings and sales expectations, fueled by snacks and beverage
PepsiCo earnings for the second quarter surpassed analysts’ expectations, on the back of strong sales in snacks and sparkling water.
The beverage and snack company reported adjusted earnings of $1.54 per share for the quarter, compared to $1.50 expected by Wall Street analysts.
Pepsi’s revenue of $16.449 billion also edged past analysts’ estimates of $16.426 billion.
Its Frito-Lay North America segment was the strongest performer in sales, reporting +5% organic revenue growth. Frito-Lay revenues along with the company's other snacks businesses comprise more than half of the group's total revenue.
Pepsi’s North American beverage business organic revenue grew by +2.2%. With increasing health consciousness among consumers, Pepsi has focused on releasing energy drinks like Mountain Dew Game Fuel and sparkling water brand Bubly.
Looking at the latest quarterly sales report, it seems that Pepsi's strategy to expand healthier options in snacks and beverages is paying off.
Looking ahead, the company expects full-year fiscal 2019 organic revenue to grow by +4%, and adjusted earnings per share (assuming constant foreign currency exchange rates) to decline by -1%.
PEP in upward trend: price may ascend as a result of having broken its lower Bollinger Band on June 30, 2026
PEP may jump back above the lower band and head toward the middle band. Traders may consider buying the stock or exploring call options. In of 43 cases where PEP's price broke its lower Bollinger Band, its price rose further in the following month. The odds of a continued upward trend are .
Technical Analysis (Indicators)
Bullish Trend Analysis
The RSI Oscillator points to a transition from a downward trend to an upward trend -- in cases where PEP's RSI Oscillator exited the oversold zone, of 27 resulted in an increase in price. Tickeron's analysis proposes that the odds of a continued upward trend are .
The Momentum Indicator moved above the 0 level on July 02, 2026. You may want to consider a long position or call options on PEP as a result. In of 86 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 July 02, 2026. Looking at past instances where PEP's MACD turned positive, the stock continued to rise in of 46 cases 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 309 cases, the price rose further within the following month. The odds of a continued upward trend are .
Bearish Trend Analysis
The Stochastic Oscillator has been in the overbought zone for 2 days. Expect a price pull-back in the near future.
The 50-day moving average for PEP moved below the 200-day moving average on June 29, 2026. This could be a long-term bearish signal for the stock as the stock shifts to an downward trend.
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 July 01, 2026. This could indicate a strong downward move is ahead for the stock. Traders may want to consider selling the stock or buying put options.
Fundamental Analysis (Ratings)
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: P/B Ratio (9.107) is normal, around the industry mean (7.808). P/E Ratio (22.372) is within average values for comparable stocks, (45.550). Projected Growth (PEG Ratio) (1.534) is also within normal values, averaging (5.099). PEP has a moderately high Dividend Yield (0.040) as compared to the industry average of (0.026). P/S Ratio (2.048) is also within normal values, averaging (3.400).
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 PE Growth Rating for this company is (best 1 - 100 worst), pointing to consistent 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 Seasonality Score of (best 1 - 100 worst) indicates that the company is fair valued in the industry. The Tickeron Seasonality score describes the variance of predictable price changes around the same period every calendar year. These changes can be tied to a specific month, quarter, holiday or vacation period, as well as a meteorological or growing season.
The Tickeron Price Growth Rating for this company is (best 1 - 100 worst), indicating fairly steady price growth. PEP’s price grows at a lower 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 that the returns do not compensate for the risks. PEP’s unstable profits reported over time resulted in significant Drawdowns within these last five years. A stable profit reduces stock drawdown and volatility. The average Profit vs. Risk Rating rating for the industry is 70, placing this stock worse than average.
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Fundamental Analysis Ratings
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General Information
a provider of a diversified line of soft drinks and snack foods
Industry BeveragesNonAlcoholic
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