- 1 PEP Stock fell 2.26% in a month but gained 4.93% in six months and 1.68% YTD.
- 2 SodaStream’s power purchase agreement could enhance PepsiCo’s ESG ratings.
Soft-drink manufacturer PepsiCo. Inc. (NASDAQ: PEP) reported a positive Q2 earnings report, causing PEP stock to jump around 3%. Moreover, PepsiCo’s subsidiary SodaStream entered a power purchase agreement with Enlight Renewable Energy. This deal would boost the beverage giant’s environmental credentials via strategic energy management.
PepsiCo Inc. (PEP Stock) – Financial Analysis
Mitsubishi UFJ Trust & Banking Corp. increased its skate by 6.0% in Q1 2023; they now own 1,1781241 shares worth $214 Million. Mirae Asset Global Investment Co. Ltd. also grew its holdings by 34.0% and currently owns 1,128,044 shares worth $188 Million. AMI Investment Management Inc. raised its position by 0.7%, with a portfolio of 16,627 shares worth $2.7 Million.
PepsiCo’s net revenue grew by 10.4%, while the foreign impact on net revenue has been 2.5%. Organic revenue growth for the second quarter has been 13.0%, with year to date (YTD) change of 13.6%. For the fiscal year 2023, analysts expect the company to deliver 10% organic revenue growth. Coca-Cola Co. (NYSE: KO) fell 0.47% to $60.88.
Pepsico Inc. (NASDAQ: PEP) – Technical Analysis
NASDAQ: PEP, at press time, is trading at $183.62, falling 0.23%; previous close and open were at $184.04 and $184.39, respectively. The 52-week range is from $160.98 to $184.39, indicating that the current price could create new highs soon. With an average volume of 4.68 Million shares, the market cap is $252.768 Billion.
The trailing twelve-month (ttm) price-to-earnings (P/E) ratio is 32.10 indicative of a highly valued stock price. At the same time, the (ttm) earnings per share (EPS) is $5.72, showcasing strength. Analysts placed a 2.25 rating for HOLD and estimated a price target at $192.00 with a 4.6% upside.
PepsiCo reported previous earnings on July 13, 2023, where the reported revenue of $22.322 Billion exceeded the estimated value of $21.729 Billion by 2.73%. The reported earnings of $2.09 per share surpassed the expected value of $1.963 per share by 6.48%. Despite favorable earnings PEP stock price only gained around 3%.
Compared to the previous quarter, the revenue gained 10.37%, while the EPS jumped by 12.37%. Also, the year-over-year (YoY) EPS gained 10.3%, and the foreign exchange impact on EPS has been 2%. The subsequent earnings will be announced on October 3, where revenue is expected to be $23.428 Billion, while earnings should be $2.148.
PepsiCo Inc. (PEP Stock) -Candle Exploration
PEP stock price has been favorable since October 2022, as the ascending trend line denotes. As long as the price stays above the trendline, the options for a rally are open. Experts think there would be a pullback, and the price would try to cross the immediate resistance at the $184.21 mark. Afterward, the price would consolidate in the expected range before crossing the selling zone.
A bullish momentum can be seen if the price crosses the $196.72 mark. If the price falls below the trendline, it should test the immediate support before entering buying zone. However, the possibility for a drop below the trendline is minimal. Ascending 200 EMA and 50 EMA hints toward a rally ahead.
The views and opinions stated by the author, or any people named in this article, are for informational purposes only and do not establish financial, investment, or other advice. Investing in or trading crypto assets comes with stocks with a financial loss risk.
Mr. Pratik chadhokar is an Indian Forex, Cryptocurrencies and Financial Market Advisor and analyst with a background in IT and Financial market Strategist. He specialises in market strategies and technical analysis and has spent over a year as a financial markets contributor and observer. He possesses strong technical analytical skills and is well known for his entertaining and informative analysis of the Financial markets.