Jul 9, 2024

Analysts Predict Good Earnings For PepsiCo | Nemo

Name of opportunity: 👀

PepsiCo, Inc 

Sweet treat: 🍰

One of the companies releasing its earnings this week is being awaited especially eagerly. On Thursday 11 July, the food and drink company PepsiCo’s quarterly earnings will be released, and analysts have high hopes. Quarterly earnings are expected to rise from US$2.09 in the year-ago period to US$2.17. Analysts think the stock is currently undervalued, meaning that investors could see strong upside potential - buying stock now while it is still comparatively low, before it grows in value. 

How hot is this investment opportunity? 🔥🔥🔥🔥

Some analysts have observed that despite a difficult market, in which consumers have less spending money than they have in other years, PepsiCo has continued to grow. This growth rate is low but it is better than the performance of many competitors in the consumer staples market. Pepsi’s last annual report shows that in 2023, core operating profit was up 12%, net revenue increased by 6% and free cash flow went up by 39%. If the earnings on Thursday demonstrate that PepsiCo has continued to perform well, it’s likely that this will drive interest in the stock and drive up its price.

PepsiCo also pays dividends at a rate that analysts consider ‘Above Average’, at a yield of 3.9%. If you invested $1000, you would be paid $39 a year in dividends (based on the last 12 months). This company has raised the amount of dividends it pays to shareholders every year for 51 years, indicating that investors can likely expect more of the same. 

Do you want ice with that?: 🥤

PepsiCo is probably most well-known for Pepsi, the product that the chain has taken its name from. It was formed in 1965, a merger between the Pepsi-Cola Company and snack foods company Frito-Lay, Inc. However, the company now has a diversified portfolio of consumer goods brands - including Walkers crisps, the Quaker Oats Company and Tropicana. Its products are available in more than 200 countries. As of December 2023, PepsiCo had approximately 318,000 employees worldwide. 

Which neme?: 🔍

‘Low Volatility Stocks’, ‘Popular Dividend Stocks’, ‘Food and Drink’, ‘Top Stocks for Recessions’, ‘This Week’s Earnings’ 

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Han Tan

Han Tan is a seasoned financial journalist and news presenter renowned for his expertise in global markets. With a career highlighted by interviews with prominent figures and recognition from major media outlets like CNN and Reuters, he delivers insightful analysis on market news and macroeconomic trends to clients and international audiences. Han's sharp commentary on currencies, stocks, and commodities is familiar to viewers of Bloomberg TV Malaysia, BFM 89.9, and NTV7, cementing his sterling reputation in the industry.