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- Soda and snack large PepsiCo (NASDAQ:PEP) is scheduled to announce Q3 earnings outcomes on Tuesday, October tenth, earlier than market open.
- The consensus EPS estimate is $2.15 (+9.1% Y/Y) and the consensus income estimate is $23.44 billion (+6.7% Y/Y).
- Over the final 2 years, PEP has crushed EPS estimates 100% of the time and has crushed income estimates 100% of the time.
- During the last 3 months, EPS estimates have seen 8 upward revisions and 5 downward. Income estimates have seen 10 upward revisions and 0 downward.
- The corporate on July 13 reported Q2 non-GAAP EPS of $2.09, beating estimates by 13 cents. Income of $22.32 billion was up 10.3% from final 12 months and forward of expectations by not less than $590 million.
- PEP has a Quant score of “STRONG BUY“, with a 4.64 score rating.
- PEP has an business rating of 2 out of 14 amongst tender drink shares, as per SA’s Quant rating, one spot behind Coke.
- Wall Avenue charges the PEP inventory a “BUY” and Looking for Alpha authors fee it “HOLD“.
- PEP inventory rose 7.2% in 2022, whereas the benchmark S&P 500 Index slipped almost 20% for the 12 months.
- Inventory is down 8.8% to this point this 12 months as of Friday’s shut. The S&P Meals & Beverage Choose Business Index is down 9.1% YTD.
Latest commentary on PepsiCo:
“Pepsi is a good firm with superb world manufacturers however stays costly even when contemplating the expansion. When taking Pepsi’s historic and most up-to-date quarterly progress into consideration, Pepsi’s valuation solely begins to look interesting. The 31.5x TTM P/E represents solely a 3.2% earnings yield and the corporate at present trades at a really comparable 3.5% traders’ adjusted ROE primarily based on a historic evaluation. Whereas these yields are usually not a lot on their very own to get enthusiastic about, including Pepsi’s progress potential begin to add as much as some respectable returns. Whereas nonetheless costly, Pepsi is on my radar for an funding if any additional pullback happens,” writes SA contributor Cameron Smith in a September 19 report.
“PepsiCo’s 2.8% dividend yield is not remarkably excessive or prone to get your consideration. Nevertheless it’s pretty enticing in comparison with the measly 1.5% dividend yield of the S&P 500 index. To not point out that PepsiCo’s sustainable payout ratio and ample progress prospects ought to translate into extra dividend progress down the highway. Whereas it isn’t an affordable inventory, my inputs into the DCF mannequin and DDM assist the argument that PepsiCo is sensibly valued. Because of this now is not a foul time to purchase shares of the inventory and a pullback can be a good higher time so as to add to your place as a dividend progress investor,” writes SA contributor Kody’s Dividends in a September 19 report.