PepsiCo Stock After Strong Financial Report: Is It a Moment to Buy?

<p>PepsiCo
became one of the first companies that released its earnings in the new US
reporting season. And market participants responded positively to the figures.
As a result, the stock has experienced a nearly 2.5% increase. Let’s delve into
how PepsiCo achieved such results in these unstable times and whether adding a
few company shares to a portfolio is a wise move.</p><p>To begin
with, let's examine the growth that PepsiCo stock has demonstrated this year –
not much at all, standing at around 5% for the first half of the year. Also, if
you are looking for assets showing more impressive results in 2023, you can use
<a href="https://www.tradingview.com/screener/" target="_blank" rel="follow">stock
screener</a>. This tool enables you to get lists of stocks based on your
own filters and criteria.</p><p>PepsiCo’s
revenue and earnings have surpassed analyst forecasts – $22.3 billion against
$21.7 billion, and $1.99 earnings per share versus the estimated $1.96 a share,
respectively. Despite the rising prices for the company’s products, sales have
also increased. However, the volumes went downhill. All while, PepsiCo has
raised its future earnings forecasts.</p><p>While
these results are not the best, they tell us about the loyalty of PepsiCo's
customers. If you enjoy Pepsi or Doritos, you’ll grab them from a shelf in a
supermarket (albeit looking at prices and sighing heavily). The CEO of PepsiCo
defines its products as “affordable luxury” – enjoyable unnecessary
spending. </p><p>Diversification
has proven to be a significant advantage for this beverage and snacks
manufacturer. Pepsi, Gatorade, Lipton, Mountain Dew, Doritos, Cheetos, Lay’s
all belong to the PepsiCo family. Plus, the company is expanding into healthier
food options with less-known brands like SunChips and Off The Eaten. </p><p>Among
the other significant factors contributing to growth, there is a relatively low
unemployment rate in developed and emerging countries. This allows PepsiCo to
maintain sales at an affordable level. Additionally, it's essential to consider
not only the 2023 results but also the broader period. As seen, PepsiCo's stock
has outperformed the <a href="https://www.tradingview.com/symbols/SPX/" target="_blank" rel="follow">S&amp;P 500 index</a> over the past five years.</p><p>PepsiCo
is a legendary name. Even this fact alone is enough to generate dozens of
profit. The financial capabilities of the company give an opportunity to pay
dividends for many years in a row. </p><p>Following
the release of the strong financial report, lots of analyst departments have
adjusted their price targets: for example, Deutsche Bank raised its target from
$193 to $195, Goldman Sachs – from $208 to $212, RBC – from $178 to $180, and
Wedbush – from $200 to $206. The consensus forecast for PepsiCo stock stands at
a +7.5% growth in the next 12 months. Not too much, but maybe that’s what
stability looks like.</p><p>Remember,
before making any trade, it's crucial to conduct your own analysis. It's a more
intricate process than simply relying on analyst opinions while holding a can
of Pepsi in your hand, but it's the only way to achieve success.</p>

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