PepsiCo (PEP) got a big boost from the re-opening of economies around the world by successfully overcoming supply chain bottlenecks.
On Tuesday morning, the beverage and snack giant reported solid Q3 financial results, and raised its full-year forecast.
I’m bullish on PEP stock. (See Analysts’ Top Stocks on TipRanks)
Strong Performance
PepsiCo’s Q3 core EPS came at $1.79 on $20.2 billion of net revenue. Sales were strong across most product categories and geographical regions, despite supply chain challenges.
“Given our year-to-date performance, we now expect our full-year organic revenue to increase approximately 8 percent and core constant currency earnings per share to increase at least 11 percent,” said chairman and CEO Ramon Laguarta.
Laguarta attributed PepsiCo’s strong performance to the investments made in digitalizing its operations and developing new products to become faster, stronger, and better.
“To further complement and enhance our strategic framework, we recently introduced PepsiCo Positive (pep+), a fundamental end-to-end transformation of what we do and how we do it to create growth and shared value with sustainability and human capital at the center,” said Laguarta.
“We are extremely pleased with the progress we are making on our strategic agenda and remain committed to the investments in our people, supply chain, plants, go-to-market systems, and digitization initiatives to build competitive advantages and win in the marketplace.”
Over the years, PepsiCo has expanded the scale and scope of its operations, which helped the company achieve sales twice the size of its close competitor Coca-Cola (KO).
Wall Street’s Take
In the last 12 month’ Pepsi’s shares have gained 16.5%, beating the 11.8% gain of Coca-Cola Co.
TipRanks assigns PepsiCo a Smart Score of Perfect 10, citing strong technicals, fundamentals, and increased hedge fund activity.
According to TipRanks’ analyst rating consensus, Pepsi is a Moderate Buy, based on eight Buys, and six Holds.
The average Pepsi price target of $166.57 implies 7.5% upside potential.
Bottom Line
PepsiCo has again demonstrated that it can survive and thrive in challenging business environments.
Disclosure: At the time of publication, Panos Mourdoukoutas owned shares of PepsiCo
Disclaimer: The information contained in this article represents the views and opinion of the writer only, and not the views or opinion of TipRanks or its affiliates, and should be considered for informational purposes only. TipRanks makes no warranties about the completeness, accuracy or reliability of such information. Nothing in this article should be taken as a recommendation or solicitation to purchase or sell securities. Nothing in the article constitutes legal, professional, investment and/or financial advice and/or takes into account the specific needs and/or requirements of an individual, nor does any information in the article constitute a comprehensive or complete statement of the matters or subject discussed therein. TipRanks and its affiliates disclaim all liability or responsibility with respect to the content of the article, and any action taken upon the information in the article is at your own and sole risk. The link to this article does not constitute an endorsement or recommendation by TipRanks or its affiliates. Past performance is not indicative of future results, prices or performance.
