PepsiCo Stocks Rose after Earnings. But Why Then Analysts Adjusted Their Forecasts?

<p>Sometimes,
almost everyone gets in the mood for a Pepsi or McDonald's. You know, such an
internal craving for fast food or sugary beverages for no explicable reason.
However, these days, people choose healthier food options more frequently.
Surprisingly, this shift is also benefiting PepsiCo – the company’s recent
financial report proves it. Let's find out why the stocks went up, yet
analysts revised their predictions.</p><p>The
chart below illustrates the market’s response to PepsiCo’s report. The stocks
hiked by about 2%. Not a substantial increase, but it could present a
reasonable trade opportunity. To find more such opportunities, or even more
impressive ones, you can use the <a href="https://www.tradingview.com/markets/stocks-usa/earnings/" target="_blank" rel="follow">earnings calendar</a>, which shows all the
upcoming significant and minor reports.</p><p>Anyway,
2% is a decent gain, yet there is room for more. What about a longer timespan?
It's evident that PepsiCo stocks have displayed a downward trend throughout
this year.</p><p>Nevertheless,
generally, these shares belong to the group of assets capable of generating
profit over years and even decades due to the robust business and brand power.</p><p>PepsiCo’s
surpassed both expectations and the figures from the same quarter a year ago.
The Q3 revenue reached $23.15 billion slightly below the estimated $23.41
billion but exceeding the previous year's $22 billion. Earnings per share stood
at $2.24 outperforming the anticipated $2.15 and the last year's $1.97.
Besides, the company increased its <a href="https://www.investopedia.com/terms/g/guidance.asp" target="_blank" rel="follow">full-year guidance.</a></p><p>The
critical factor behind these impressive stats is the <a href="https://www.reuters.com/business/retail-consumer/pepsico-bets-price-hikes-again-raise-annual-profit-forecast-2023-10-10/" target="_blank" rel="follow">price increase for PepsiCo’s products</a>.
Furthermore, several notable trends are emerging in the beverage and food
industry, as well as in supermarkets and related sectors.</p><p>First,
there is an evolving tendency in favor of healthy food, sugar-free drinks, and
smaller packs. PepsiCo is actively developing these lines, enabling the company
to remain adaptable and generate profits in various scenarios.</p><p>Secondly,
the company’s representatives highlighted that urbanization and modern world
rules often lead customers to opt for snacks instead of a full meal.</p><p>Even
though PepsiCo's stocks saw a modest increase following earnings, many analyst
companies adjusted their forecasts. Notably, Morgan Stanley lowered their
target from $210 to $190, Citigroup from $200 to $180, and JPMorgan from $188
to $185. However, the consensus forecast based on analysts' opinions suggest
that PepsiCo shares are still traded below their fair value, with the potential
for a 17% increase over the next 12 months.</p><p>Please
remember to do your own research before making any stock-related decisions.</p>

This article was written by FL Contributors at www.forexlive.com.