PepsiCo (PEP, $116.00) starts restructuring plan but won't break up the company
After publishing PepsiCo's (PEP) recent fourth quarterly report, the new CEO Ramon Laguarta reiterated he is satisfied with the Company’s product and geographic portfolios and, therefore, has no plans to divest its operations by shedding or acquiring any significant businesses.
However, the company has put into motion a new restructuring program that may lead to an unspecified number of job losses and factories closures over the coming years. This is also expected save billions of dollars in associated costs for the company.
As of today, PEP expects that this program may come at a cost of approx. $2.5 billion in terms of pre-tax restructuring charges through 2023, mostly from severance and other employee costs. In its FY 2018 results, the company allocated $138 million towards these restructuring costs with a further projected expense of $800 million in related charges during the current year.
PEP is optimistic about its future growth anticipating organic revenue to rise 4% this year over last year’s 3.7%. However, core earnings excluding currency fluctuations are expected to fall by approx. 1% due to items including a higher tax rate and investments being made this year. The Company further expects to spend ~$4.5 billion on capex in 2019, a y-o-y increase of more than $1billion.
PEP's Stochastic Oscillator remains in oversold zone for 1 day
Be on the lookout for a price bounce soon.
Technical Analysis (Indicators)
Bullish Trend Analysis
Following a 3-day Advance, the price is estimated to grow further. Considering data from situations where PEP advanced for three days, in of 322 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 272 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 10-day RSI Indicator for PEP moved out of overbought territory on February 13, 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 39 similar instances where the indicator moved out of overbought territory. In of the 39 cases, the stock moved lower in the following days. This puts the odds of a move lower at .
The Momentum Indicator moved below the 0 level on March 04, 2026. You may want to consider selling the stock, shorting the stock, or exploring put options on PEP as a result. In of 88 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 February 19, 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 45 similar instances when the indicator turned negative. In of the 45 cases the stock turned lower in the days that followed. This puts the odds of success at .
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 January 30, 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 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 (10.672) is normal, around the industry mean (6.312). P/E Ratio (26.572) is within average values for comparable stocks, (34.079). Projected Growth (PEG Ratio) (3.189) is also within normal values, averaging (27.170). Dividend Yield (0.036) settles around the average of (0.024) among similar stocks. P/S Ratio (2.330) is also within normal values, averaging (3.259).
The Tickeron PE Growth Rating for this company is (best 1 - 100 worst), pointing to outstanding 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 Price Growth Rating for this company is (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 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 73, placing this stock slightly better than average.
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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General Information
a provider of a diversified line of soft drinks and snack foods
Industry BeveragesNonAlcoholic
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