PepsiCo (PEP, $110.71) Third Quarter Performance Beats Analysts' Expectations
PepsiCo, Inc. reported earnings higher than expected, as new strategies for the North American market paid off, along with growing sales in emerging markets.
Excluding one-time items, the company raked in $1.59 per share earnings, beating analysts' estimates of $1.57 for the third quarter ending September 8. Total net income of $2.49 billion (or $1.75 per share) was up a whopping 16% from $2.14 billion (or $1.48 per share) a year earlier.
Net revenue increased 1.5 percent to $16.49 billion, which is higher than analysts' average projection of $16.36 billion.
By shifting its beverage portfolio more towards healthier options such as non-carbonated drinks and sparkling water (including its launch of brands Bubly and Lifewtr), Pepsi managed to revive sales in an increasingly health-conscious consumer segment of North America. The firm's beverage sales in the region grew 2.3% in the third-quarter, albeit missing analysts' average estimate of a 5% increase, according to Thomson Reuters.
Due to decreasing consumer preference for salty snacks, Pepsi’s Frito-Lay sales fell short of analysts' projections, but still managed to grow in the positive territory ( at 2.6%) in North America.
In the emerging markets, organic sales rose 10% in the quarter on the back of expanding marketing and new product launches in Mexico, India and China.
PepsiCo said it now projects its full-year organic revenue ( which excludes acquisitions and forex effects) to grow at least 3 percent, up from a prior forecast of 2.3% increase.
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Sergey Savastiouk, Ph.D. has a degree in Applied Mathematics from Moscow University and has extensive experience as an entrepreneur, investor, manager, and mathematician. His professional expertise is in applied mathematics, mathematical modeling, system and pattern analysis, and software and hardware system integration. He has served as the CEO of several hi-tech start-up companies and nonprofit organizations, which has given him proven capabilities in business strategy for high-tech start-up companies, market assessment, company formation, team building, product development, marketing, and sales. He has published numerous articles in journals and magazines on related fields. As a retail investor, he spent 15 years developing his proprietary trading and quantitative algorithms (now Tickeron’s A.I.), which brought him significant returns in trading the stock market. His current work and goal in founding Tickeron is to bring professional, sophisticated stock market analysis capabilities to retail investors via an easy-to-use interface.
PEP's Stochastic Oscillator is staying in oversold zone for 8 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 uptrend is expected.
Technical Analysis (Indicators)
Bullish Trend Analysis
Following a +1.82% 3-day Advance, the price is estimated to grow further. Considering data from situations where PEP advanced for three days, in 120 of 300 cases, the price rose further within the following month. The odds of a continued upward trend are 40%.
The Aroon Indicator entered an Uptrend today. In 85 of 241 cases where PEP Aroon's Indicator entered an Uptrend, the price rose further within the following month. The odds of a continued Uptrend are 35%.
Bearish Trend Analysis
The Momentum Indicator moved below the 0 level on September 01, 2026. You may want to consider selling the stock, shorting the stock, or exploring put options on PEP as a result. In 39 of 87 cases where the Momentum Indicator fell below 0, the stock fell further within the subsequent month. The odds of a continued downward trend are 45%.
The Moving Average Convergence Divergence Histogram (MACD) for PEP turned negative on August 31, 2026. 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 46 similar instances when the indicator turned negative. In 24 of the 46 cases the stock turned lower in the days that followed. This puts the odds of success at 52%.
PEP moved below its 50-day moving average on September 09, 2026 date and that indicates a change from an upward trend to a downward trend.
The 10-day moving average for PEP crossed bearishly below the 50-day moving average on September 10, 2026. This indicates that the trend has shifted lower and could be considered a sell signal. In 8 of 17 past instances when the 10-day crossed below the 50-day, the stock continued to move higher over the following month. The odds of a continued downward trend are 47%.
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 47%.
PEP broke above its upper Bollinger Band on August 21, 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.
Fundamental Analysis (Ratings)
The Tickeron Valuation Rating of 16 (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 (8.418) is normal, around the industry mean (5.917). P/E Ratio (17.866) is within average values for comparable stocks, (43.029). Projected Growth (PEG Ratio) (1.396) is also within normal values, averaging (4.160). PEP has a moderately high Dividend Yield (0.043) as compared to the industry average of (0.026). P/S Ratio (1.929) is also within normal values, averaging (2.747).
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 Price Growth Rating for this company is 59 (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 PE Growth Rating for this company is 80 (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 76, 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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