GET DAILY SIGNALSPepsi (PEP, $168.58) beats Q4 earnings expectations; but full-year guidance is below analysts' projection
PepsiCo reported its fourth quarter earnings that topped analysts’ expectations. Revenue, too beat Street estimates. However, the beverage behemoth’s projection on the full-year performance fell short of analysts’ forecasts.
The company’s adjusted earnings came in at $1.53 a share, compared to $1.52 expected by analysts polled by Refinitiv.
Revenue of $25.25 billion also beat $24.24 billion expected.
The company’s organic revenue, which excludes acquisitions and divestitures, climbed +11.9% in the quarter.
Pepsi’s North American beverage division’s organic revenue grew +12%, as it ventured into developing new products like an energy drink with Starbucks.
Frito-Lay organic revenue rose by 13% for the quarter.
Quaker Foods North America’s organic revenue climbed +9%.
Latin America experienced the biggest quarterly jump in organic revenue, at +17%. Mexico, Brazil, Turkey, Spain, India, Egypt, China and Thailand had double-digit growth in the quarter.
In an interview with CNBC, Pepsi’s chief financial officer, Hugh Johnston, mentioned cost challenges, but said the company has the brand loyalty and pricing power to “get through the year with our margins pretty well intact.” Johnston added on an earnings call that he expects the company would increase prices again.
Pepsi predicts organic revenue growth of 6% for the full-year 2022. The company expects fiscal 2022 core constant currency earnings of $6.67 per share lower than analysts’ projections of $6.73.
The company expects to pay out around $7.7 billion to shareholders, including dividends of $6.2 billion and share buybacks of $1.5 billion, in the coming year.
PEP's MACD Histogram just turned positive
The Moving Average Convergence Divergence (MACD) for PEP turned positive on October 09, 2026. Looking at past instances where PEP's MACD turned positive, the stock continued to rise in 19 of 45 cases over the following month. The odds of a continued upward trend are 42%.
Technical Analysis (Indicators)
Bullish Trend Analysis
The Momentum Indicator moved above the 0 level on October 14, 2026. You may want to consider a long position or call options on PEP as a result. In 37 of 90 past instances where the momentum indicator moved above 0, the stock continued to climb. The odds of a continued upward trend are 41%.
Following a +3.59% 3-day Advance, the price is estimated to grow further. Considering data from situations where PEP advanced for three days, in 115 of 295 cases, the price rose further within the following month. The odds of a continued upward trend are 39%.
Bearish Trend Analysis
The 10-day RSI Indicator for PEP moved out of overbought territory on October 23, 2026. This could be a bearish sign for the stock. Traders may want to consider selling the stock or buying put options. Tickeron's A.I.dvisor looked at 32 similar instances where the indicator moved out of overbought territory. In 17 of the 32 cases, the stock moved lower in the following days. This puts the odds of a move lower at 53%.
The Stochastic Oscillator may be shifting from an upward trend to a downward trend. In 30 of 63 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 48%.
PEP moved below its 50-day moving average on October 27, 2026 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 50 of 62 cases within the following month. The odds of a continued downward trend are 49%.
PEP broke above its upper Bollinger Band on October 22, 2026. 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 Aroon Indicator for PEP entered a downward trend on October 16, 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 SMR rating for this company is 20 (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 Seasonality Score of 50 (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 56 (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 Valuation Rating of 70 (best 1 - 100 worst) indicates that the company is slightly overvalued 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 (8.246) is normal, around the industry mean (-4.662). P/E Ratio (17.474) is within average values for comparable stocks, (24.709). Projected Growth (PEG Ratio) (1.316) is also within normal values, averaging (3.732). Dividend Yield (0.044) settles around the average of (0.040) among similar stocks. P/S Ratio (1.901) is also within normal values, averaging (2.785).
The Tickeron PE Growth Rating for this company is 83 (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 Profit vs. Risk Rating rating for this company is 93 (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 73, placing this stock worse 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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