Latest news with #PepsiCo
Yahoo
an hour ago
- Business
- Yahoo
What To Expect From PepsiCo's (PEP) Q2 Earnings
Food and beverage company PepsiCo (NASDAQ:PEP) will be reporting results this Thursday before the bell. Here's what to expect. PepsiCo beat analysts' revenue expectations by 0.7% last quarter, reporting revenues of $17.92 billion, down 1.8% year on year. It was a mixed quarter for the company, with a decent beat of analysts' organic revenue estimates but a slight miss of analysts' EPS estimates. Is PepsiCo a buy or sell going into earnings? Read our full analysis here, it's free. This quarter, analysts are expecting PepsiCo's revenue to be flat year on year at $22.35 billion, slowing from its flat revenue in the same quarter last year. Adjusted earnings are expected to come in at $2.03 per share. Heading into earnings, analysts covering the company have grown increasingly bearish with revenue estimates seeing 5 downward revisions over the last 30 days (we track 10 analysts). PepsiCo has missed Wall Street's revenue estimates five times over the last two years. Looking at PepsiCo's peers in the consumer staples segment, some have already reported their Q2 results, giving us a hint as to what we can expect. Constellation Brands's revenues decreased 5.5% year on year, missing analysts' expectations by 1.5%, and McCormick reported flat revenue, in line with consensus estimates. Constellation Brands traded up 4.5% following the results while McCormick was also up 3.6%. Read our full analysis of Constellation Brands's results here and McCormick's results here. Investors in the consumer staples segment have had steady hands going into earnings, with share prices flat over the last month. PepsiCo is up 1.9% during the same time and is heading into earnings with an average analyst price target of $147.70 (compared to the current share price of $133.94). Here at StockStory, we certainly understand the potential of thematic investing. Diverse winners from Microsoft (MSFT) to Alphabet (GOOG), Coca-Cola (KO) to Monster Beverage (MNST) could all have been identified as promising growth stories with a megatrend driving the growth. So, in that spirit, we've identified a relatively under-the-radar profitable growth stock benefiting from the rise of AI, available to you FREE via this link. StockStory is growing and hiring equity analyst and marketing roles. Are you a 0 to 1 builder passionate about the markets and AI? See the open roles here.
Yahoo
2 hours ago
- Business
- Yahoo
Jim Cramer Highlights Hershey's Troubles
The Hershey Company (NYSE:HSY) is one of the stocks on Jim Cramer's radar. During the episode, Cramer discussed the company's management changes. He commented: 'If you really want overlooked, there's the other side of the story, Hershey, down big yesterday and today. I get it. They're losing the steady hand of CEO of Michele Buck and getting Tanner, who only spent about a year and a half at Wendy's, where he departed. Even though Tanner originally had a consumer packaged goods background, he'd been in PepsiCo for 32 years before Wendy's, it always raises eyebrows when a CEO flees a struggling company to work somewhere else in a hurry. A close-up of hands deftly moulding a bar of chocolate. Hershey (NYSE:HSY) manufactures and sells a wide range of confectionery, snack, and pantry products under brands like Hershey's, Reese's, Kit Kat, SkinnyPop, and Dot's Pretzels. While we acknowledge the potential of HSY as an investment, we believe certain AI stocks offer greater upside potential and carry less downside risk. If you're looking for an extremely undervalued AI stock that also stands to benefit significantly from Trump-era tariffs and the onshoring trend, see our free report on the best short-term AI stock. READ NEXT: 30 Stocks That Should Double in 3 Years and 11 Hidden AI Stocks to Buy Right Now. Disclosure: None. This article is originally published at Insider Monkey. Error while retrieving data Sign in to access your portfolio Error while retrieving data Error while retrieving data Error while retrieving data Error while retrieving data
Business Insider
3 hours ago
- Business
- Business Insider
PepsiCo (PEP) Is About to Report Q2 Earnings. Here's What to Expect
Snack food and beverage giant PepsiCo (PEP) is scheduled to announce its results for the second quarter of 2025 on Thursday, July 17. PEP stock is down nearly 11% year-to-date due to the company's sluggish North American business, shift in consumer preferences toward healthier options, tariff pressures, intense competition, and macro uncertainty. Wall Street expects PepsiCo to report earnings per share (EPS) of $2.03, reflecting about an 11% year-over-year decline. Elevate Your Investing Strategy: Take advantage of TipRanks Premium at 50% off! Unlock powerful investing tools, advanced data, and expert analyst insights to help you invest with confidence. Make smarter investment decisions with TipRanks' Smart Investor Picks, delivered to your inbox every week. The company's Q2 revenue is estimated to fall by 1% to $22.2 billion. Analysts' Views Ahead of PepsiCo's Q2 Earnings Heading into the Q2 results, Evercore analyst Robert Ottenstein reiterated a Hold rating on PepsiCo stock with a price target of $140. The analyst stated that he is concerned about the stock being range-bound until growth is seen in the domestic business. He noted that PepsiCo has seen challenging trends since 2024, leading to several guidance cuts due to weakness in the Frito-Lay North America (FLNA) division. Ottenstein noted that while PepsiCo's productivity efforts continue and are expected to support EPS growth in FY26 and beyond, weak top-line trends, tariffs, forex headwinds, and interest expense are expected to adversely impact the company's performance this year. He expects Q2 organic sales growth to come in at 0.9% compared to the Street's estimate of 1.8% due to pressure in the North American business. Ottenstein's Q2 EPS estimate of $2.02 is also below the consensus estimate. Meanwhile, UBS analyst Peter Grom reiterated a Buy rating on PEP stock with a price target of $169. Grom expects a challenging Q2, with his organic growth and EPS estimates about 40 basis points and $0.03 below consensus estimates, respectively. The analyst expects PepsiCo's international performance to remain strong. However, with little improvement in tracked trends for FLNA and the PepsiCo Beverages North America (PBNA) divisions this Spring, Grom expects the core debate centered around PepsiCo's ability to revive its struggling North American business to persist. While Grom thinks that the near-term setup remains mixed, he still sees a path to low/mid-single-digit organic revenue growth and mid/high-single-digit adjusted EPS growth over the long term. He highlighted that with PEP stock trading at a 23% discount to large-cap multinationals, the risk/reward still skews to the upside from current levels. TipRanks' AI Analyst Is Bullish on PepsiCo Stock Ahead of Q2 Print TipRanks' AI stock analysis assigns an Outperform rating on PepsiCo stock with a price target of $154, reflecting a 13.6% upside potential. The AI analyst rating is based on strong financial performance, efforts to enhance liquidity, and solid international growth. That said, technical indicators, valuation, tariffs, and North American market conditions suggest some caution. Interestingly, TipRanks' A.I. Stock Analysis provides automated, data-backed evaluations of stocks across key metrics, offering users a clear and concise view of a stock's potential. Here's What Options Traders Anticipate Ahead of PEP's Q2 Earnings Using TipRanks' Options tool, we can see what options traders are expecting from the stock immediately after its earnings report. The expected earnings move is determined by calculating the at-the-money straddle of the options closest to expiration after the earnings announcement. If this sounds complicated, don't worry, the Options tool does this for you. Indeed, it currently says that options traders are expecting about a 4.14% move in either direction in PepsiCo stock in reaction to Q2 results. Is PepsiCo a Good Stock to Buy? Currently, Wall Street is sidelined on PepsiCo stock, with a Hold consensus rating based on three Buys and 10 Holds. The average PEP stock price target of $146.58 indicates 8.1% upside potential from current levels.
Yahoo
4 hours ago
- Business
- Yahoo
Jim Cramer Says PepsiCo is Too Cheap Yet Overlooked
PepsiCo, Inc. (NASDAQ:PEP) is one of the stocks that Jim Cramer shared insights on. Cramer discussed the stock's valuation during the episode, as he said: 'If you want to know a stock that's too cheap relative to its growth rate, but nobody talks about it anymore, why don't you check out the stock of PepsiCo? It trades at a stunningly low 17 times earnings. I mean, what gives? Well, how about GLP-1 drugs? How about RFK Junior at Health and Human Services, who despises junk food even as he seems to embrace junk science? How about the desire to stay healthy? All these have weighed on PepsiCo stock. Of course, don't forget they own Frito-Lay. Maybe it's finally overdone. I don't know it. It's a tough industry all of a sudden.' A close up of a glass of a refreshing carbonated beverage illustrating the company's different beverages. PepsiCo (NASDAQ:PEP) produces and sells a wide range of beverages and packaged foods, including snacks, cereals, dairy products, and soft drinks. The company's portfolio features well-known brands like Lay's, Gatorade, Quaker, and Pepsi. While we acknowledge the potential of PEP as an investment, we believe certain AI stocks offer greater upside potential and carry less downside risk. If you're looking for an extremely undervalued AI stock that also stands to benefit significantly from Trump-era tariffs and the onshoring trend, see our free report on the best short-term AI stock. READ NEXT: 30 Stocks That Should Double in 3 Years and 11 Hidden AI Stocks to Buy Right Now. Disclosure: None. This article is originally published at Insider Monkey. Sign in to access your portfolio
Yahoo
12 hours ago
- Business
- Yahoo
CELH Stock Trades at Premium Value: Should You Buy, Hold or Sell?
Celsius Holdings, Inc. CELH is currently trading at a forward 12-month price-to-earnings (P/E) multiple of 45.27X, representing a significant premium compared with the Zacks Food - Miscellaneous industry average of 15.96X, the broader Consumer Staples sector of 17.32X, and the S&P 500 of 22.61X. The current valuation also exceeds the median P/E level of 33.07 recorded over the past year. Such a high multiple raises a key question: Does CELH offer enough growth to justify this premium, or has the stock entered overvalued territory? Image Source: Zacks Investment Research This premium valuation becomes even more striking when stacked against other major beverage players such as PepsiCo, Inc. PEP, Monster Beverage Corporation MNST, and The Coca-Cola Company KO. PepsiCo, Monster Beverage, and Coca-Cola are all trading at lower forward P/E ratios of 16.76X, 30.26X and 22.43X, respectively. Beyond valuation, recent stock performance further highlights Celsius Holdings' strong momentum. Over the past three months, CELH shares have rallied 24%, significantly outperforming the industry, sector and S&P 500's growth of 0.1%, 1.1%, and 19%, respectively. Among competitors, Monster Beverage stock gained 3%, while PepsiCo and Coca-Cola stocks lost 2.2% and 2.4%, respectively, in the same time frame. This impressive rally reflects bullish sentiment around CELH's growth trajectory but also contributes to the current valuation premium. Image Source: Zacks Investment Research Celsius Holdings continues to strengthen its position in the energy beverage market, driven by the core Celsius brand and the acquisition of Alani Nu, finalized on April 1, 2025. Together, Celsius Holdings and Alani Nu accounted for approximately 20% of the total dollar growth in the energy drink category during the first quarter of 2025. With complementary brand identities and strong consumer traction, the combined portfolio enhances Celsius Holdings' ability to capture a broader customer base and foster long-term brand loyalty.A focus on sugar-free, better-for-you products remains central to the company's strategy. As consumers increasingly seek healthier, ingredient-conscious beverages, Celsius Holdings is well-positioned to capitalize on this shift. Notably, sugar-free energy drinks contributed 86% of the total growth in the energy category during the first quarter, underscoring the relevance of CELH's product continues to fuel expansion. In the first quarter of 2025, the company introduced new Vibe and ESSENTIALS flavors, alongside the launch of CELSIUS HYDRATION, a product designed to tap into the growing $1.4 billion hydration powder market. These launches are driving deeper household penetration, supporting CELH's evolution from an occasional purchase to an everyday expansion also remains a key growth lever. The company has recently expanded its distribution through more than 1,800 Home Depot locations and 18,000 Subway restaurants, thereby increasing its presence in both foodservice and on-the-go consumption channels. This enhanced retail footprint sets the stage for continued growth across multiple sales platforms. Reflecting positive sentiment around Celsius Holdings, the Zacks Consensus Estimate for earnings per share has seen upward revisions. Over the past 30 days, the consensus estimate has risen 1 cent each for the current quarter and the current financial year to 23 cents and 82 cents, respectively. (Find the latest EPS estimates and surprises on Zacks Earnings Calendar.) Image Source: Zacks Investment Research While growth prospects remain robust, Celsius Holdings faces several near-term challenges that could pressure the stock. The energy drink market remains highly competitive, with established players like Monster Beverage and Red Bull maintaining an edge in shelf space, brand loyalty, and marketing scale. Both competitors continue to expand their product offerings and pursue aggressive pricing strategies. In this environment, Celsius Holdings must work harder to defend and grow market share, especially as the category evolves the first quarter of 2025, Celsius Holdings reported a 7% year-over-year revenue decline, primarily due to lower product velocity, changes in promotional timing, and difficult comparisons against the prior year's CELSIUS ESSENTIALS nationwide rollout. The revenue dip marks a slowdown in momentum compared to the company's strong historical performance. Rising operating expenses add another layer of risk. Selling, general, and administrative costs increased to $120.3 million in the first quarter from $99 million a year earlier, reflecting increased marketing, sales expansion, and costs related to the Alani Nu acquisition. Although these investments aim to fuel long-term expansion, they could pressure margins if revenue growth does not recover at the expected pace. Celsius Holdings has achieved remarkable stock performance, driven by aggressive expansion, innovative product development, and the strategic acquisition of Alani Nu. The company's emphasis on sugar-free, functional beverages aligns with shifting consumer preferences, and an expanding retail footprint supports continued category growth. That said, the current valuation remains elevated compared to industry peers, raising questions about near-term upside. Recent revenue declines, higher operating expenses, and intensifying competition from brands like Monster and Red Bull add further challenges. Given these factors, long-term investors may consider holding the stock. Currently, CELH carries a Zacks Rank #3 (Hold). You can see the complete list of today's Zacks #1 Rank (Strong Buy) stocks here. Want the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days. Click to get this free report CocaCola Company (The) (KO) : Free Stock Analysis Report PepsiCo, Inc. (PEP) : Free Stock Analysis Report Monster Beverage Corporation (MNST) : Free Stock Analysis Report Celsius Holdings Inc. (CELH) : Free Stock Analysis Report This article originally published on Zacks Investment Research ( Zacks Investment Research
