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: 10-day moving average broke above 50-day moving average on July 03, 2025
The 10-day moving average for PEP crossed bullishly above the 50-day moving average on July 03, 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 .
Technical Analysis (Indicators)
Bullish Trend Analysis
The Momentum Indicator moved above the 0 level on June 30, 2025. You may want to consider a long position or call options on PEP as a result. In of 90 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 June 27, 2025. Looking at past instances where PEP's MACD turned positive, the stock continued to rise in of 47 cases over the following month. The odds of a continued upward trend are .
PEP moved above its 50-day moving average on June 30, 2025 date and that indicates a change from a downward trend to an upward trend.
Following a 3-day Advance, the price is estimated to grow further. Considering data from situations where PEP advanced for three days, in of 328 cases, the price rose further within the following month. The odds of a continued upward trend are .
The Aroon Indicator entered an Uptrend today. In of 280 cases where PEP Aroon's Indicator entered an Uptrend, the price rose further within the following month. The odds of a continued Uptrend are .
Bearish Trend Analysis
The RSI Indicator demonstrated that the stock has entered the overbought zone. This may point to a price pull-back soon.
The Stochastic Oscillator may be shifting from an upward trend to a downward trend. In of 65 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 .
PEP broke above its upper Bollinger Band on July 17, 2025. This could be a sign that the stock is set to drop as the stock moves back below the upper band and toward the middle band. You may want to consider selling the stock or exploring put options.
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: P/B Ratio (12.853) is normal, around the industry mean (6.809). P/E Ratio (26.366) is within average values for comparable stocks, (32.900). Projected Growth (PEG Ratio) (2.864) is also within normal values, averaging (5.903). Dividend Yield (0.029) settles around the average of (0.026) among similar stocks. P/S Ratio (2.615) is also within normal values, averaging (3.355).
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 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 69, placing this stock slightly better than average.
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.
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General Information
a provider of a diversified line of soft drinks and snack foods
Industry BeveragesNonAlcoholic
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