Pepsi (PEP, $155.25) crushes fiscal Q2 expectations
PepsiCo. posted its fiscal second quarter earnings that surpassed analysts’ expectations.
The beverage giant’s adjusted earnings for the quarter came in at $1.72, compared to $1.53 expected by analysts polled by Refinitiv.
Revenue increased more than +20% year-over-year to $19.22 billion , also exceeding analysts’ expectation of $17.96 billion.
Net sales climbed +20.5% year-over-year to $19.22 billion, vs. analysts’ expectations of $17.96 billion. Organic revenue (which excludes foreign currency impact, acquisitions and divestitures) rose 12.8%.
PepsiCo.’s North American beverage business generated an organic revenue growth of 21%, the highest of all of Pepsi’s divisions during the quarter. The Quaker Foods North America segment was the only business to report decreasing organic revenue (a -21% fall in the segment’s volume led to a -14% decrease in organic revenue ).
The company narrowed its projection for 2021 organic revenue growth from mid-single digits to 6%.
Pepsi now projects + 11% growth in constant currency earnings per share, higher than its prior forecast of high-single digit growth. The forecast implies core earnings per share of $6.20 for 2021. Analysts had forecast full-year earnings growth of 7.2%.
The company also expressed its plans to expand the duration and scope of its five-year productivity program. It expects to generate at least $1 billion in annual savings through 2026.
PEP's RSI Indicator peaks and leaves overbought zone
The 10-day RSI Oscillator for PEP moved out of overbought territory on February 26, 2025. This could be a sign that the stock is shifting from an upward trend to a downward trend. Traders may want to look at selling the stock or buying put options. Tickeron's A.I.dvisor looked at 34 instances where the indicator moved out of the overbought zone. In of the 34 cases the stock moved lower in the days that followed. This puts the odds of a move down at .
Technical Analysis (Indicators)
Bearish Trend Analysis
The Momentum Indicator moved below the 0 level on March 11, 2025. You may want to consider selling the stock, shorting the stock, or exploring put options on PEP as a result. In of 96 cases where the Momentum Indicator fell below 0, the stock fell further within the subsequent month. The odds of a continued downward trend are .
The Moving Average Convergence Divergence Histogram (MACD) for PEP turned negative on March 12, 2025. This could be a sign that the stock is set to turn lower in the coming weeks. Traders may want to sell the stock or buy put options. Tickeron's A.I.dvisor looked at 47 similar instances when the indicator turned negative. In of the 47 cases the stock turned lower in the days that followed. This puts the odds of success at .
PEP moved below its 50-day moving average on March 20, 2025 date and that indicates a change from an upward trend to a 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 .
Bullish Trend Analysis
The Stochastic Oscillator shows that the ticker has stayed in the oversold zone for 5 days. The price of this ticker is presumed to bounce back soon, since the longer the ticker stays in the oversold zone, the more promptly an upward trend is expected.
The 10-day moving average for PEP crossed bullishly above the 50-day moving average on February 27, 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 341 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.
The Aroon Indicator entered an Uptrend today. In of 293 cases where PEP Aroon's Indicator entered an Uptrend, the price rose further within the following month. The odds of a continued Uptrend are .
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 (77.968). P/E Ratio (26.366) is within average values for comparable stocks, (31.456). Projected Growth (PEG Ratio) (2.864) is also within normal values, averaging (5.903). Dividend Yield (0.029) settles around the average of (0.027) among similar stocks. P/S Ratio (2.615) is also within normal values, averaging (3.240).
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 71, 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.
The Tickeron PE Growth Rating for this company is (best 1 - 100 worst), pointing to worse than average 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 significantly overvalued 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.
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a provider of a diversified line of soft drinks and snack foods
Industry BeveragesNonAlcoholic