PepsiCo Trading forecasts and signals

      Shares 29.08.2022 - 4.09.2022Dividends for the week of 08.29.2022 - 09.4.2022CompanyPricePaymentAnnual dividendCutoff DateLast dayMcDonald's (MCD)$256,95$1,382,15%01.0930.08Kellogg Company (K)$73,85$0,593,20%01.0930.08Realty Income (O)$69,91$0,24754,25%01.0930.08Pepsico (PEP)$175,04$1,152,63%02.0931.08Bank Of America (BAC)$34,03$0,222,59%02.0931.08Suncor Energy (SU)$34,31$0,475,48%02.0931.08Nike (NKE)$108,28$0,3051,13%06.0901.09Pioneer Natural Resources (PXD)$257,38$8,5713,32%06.0901.09 Corporate reporting season 29.08.2022 - 4.09.202229.08Heico (HEI), Catalent (CTLT)H World Group (HTHT), Joyy (YY)30.08HP (HPQ), Hewlett Packard Enterprise (HPE), Crowdstrike Holdings (CRWD),Best Buy Co. (BBY), Chewy (CHWY), Chargepoint Hldgs (CHPT), PVH (PVH)Baidu (BIDU)31.08Brown-Forman (BF.A, BF.B), Veeva Systems (VEEV), Mongodb (MDB),Okta (OKTA), Cooper Companies (COO), Pure Storage (PSTG), Sentinelone (S), Donaldson Company (DCI), Nutanix (NTNX), Greif (GEF)01.09Broadcom (AVGO), Lululemon Athletica (LULU), Hormel Foods (HRL),Campbell Soup (CPB), Toro Company (TTC), Ciena (CIEN), Smartsheet (SMAR),Science Applications (SAIC), Ollie's Outlet (OLLI), Signet Jewelers (SIG)Weibo (WB), Hello Group (MOMO) Macroeconomics and major events 29.08.2022 - 4.09.202230.08GermanyGermany Consumer Price Index (CPI) (MoM) (Aug) USCB Consumer Confidence (Aug)JOLTS Job Openings (July)31.08RussiaWeekly inflationChinaPMIs (Aug)GermanyGermany Unemployment Change (Aug)EUConsumer price index (CPI) (YoY) (Aug) USADP nonfarm payrolls (June)Crude oil stocks01.09ChinaManufacturing PMI from Caixin (Aug)GermanyManufacturing activity index (PMI) (Aug)USInitial jobless claimsISM Manufacturing PMI (Aug)02.09USNon-farm payroll change (Aug)Rate of unemployment ...

The session on July 11, the main American stock exchanges ended in the red zone. The S&P 500 fell by 1.15% to 3,854 points, the Dow Jones adjusted by 0.52%, the Nasdaq fell by 2.26%. Ten of the 11 sectors included in the broad market index closed in the red. Only representatives of public utilities remained in the green zone (+0.64%).Company newsInnova (INVA: -0.1%) will acquire La Jolla Pharmaceutical (LJPC: +81.1%) at a price of $6.23 per share in cash.Alibaba Group (BABA: -9.4%) was fined by the Chinese government for non-compliance with antitrust rules and non-disclosure of information about several transactions. The same penalty was applied to Tencent Holdings (700: -1.29%) and some other companies.Uber Technologies (UBER: -5.2%) after publication in The Guardian stated that it recognizes the mistakes made and is working on changes. We are talking about aggressive lobbying actions under CEO Travis Kalanick, including a secret deal with Emmanuel Macron. In addition, the company agreed that it had no right to work in many jurisdictions where it provided services, and also admitted concealing evidence from the authorities and ignoring the risks of violence for drivers.We expectToday, investors' attention is focused on several factors that could lead to a significant slowdown in the global economy.The epidemic situation in China worsened after the first case of the contagious COVID-19 BA variety was detected in Shanghai.5. In Macau, all casinos were closed for a week. In the event of a negative development of events, the pressure in the logistics chains may continue to increase. Investors are also concerned about the state of affairs in Europe: EU leaders suggest that Russia may not resume gas supplies after a two-week shutdown of the Nord Stream for maintenance. According to Goldman Sachs estimates, in this case, the bills of European households for electricity could increase by 65%.This week, bidders expect the publication of consumer inflation data in the United States for June. The consensus forecast calls for an increase from 8.6% to 8.8%. If the CPI breaks through the 9% mark, it may provoke further sales in stocks. Against this background, discussions continue to circulate in the media about the risk of a mistake by the Fed in the fight against rising prices. Also, in the latest notes of investment banks, doubts began to appear about the sustainability of job growth and consumer activity.Trading on July 12 on the sites of Southeast Asia ended in the red zone. China's CSI 300 lost 0.94%, Hong Kong's Hang Seng fell 1.12%, Japan's Nikkei 225 adjusted 2.63%.Brent crude futures are quoted at $104.8 per barrel. Gold is trading at $1,732.7 per troy ounce.In our opinion, the S&P 500 will hold the upcoming session in the range of 3820-3880 points.MacrostatisticsNo significant macro statistics are scheduled to be published today.Sentiment IndexThe sentiment index dropped by one point to 28.Technical pictureThe closest support for the S&P 500 remains the range of 3600-3660 points. The RSI indicator is in the neutral zone, and the MACD signals the continuation of an uncertain positive trend. Quotes are approaching the upper limit of a narrow descending channel, which, due to the lack of positive news drivers, may lead to a continuation of the "bearish" trend.ReportsToday PepsiCo will publish its second quarter reports. Analysts' consensus puts the company's revenue for the second quarter at $19.5 billion with earnings per share of $1.74, which means growth of 1.4% and 1.16% YoY, ...

The session on July 8, the main American stock exchanges ended in different directions. The S&P 500 dropped by 0.08% to 3,899 points, the Dow Jones adjusted by 0.15% and only the Nasdaq rose by 0.12%. Nine of the 11 sectors included in the broad market index closed in the red. Only representatives of healthcare (+0.3%) and the IT industry (+0.1%) remained in the green zone.Company newsElon Musk refused a deal to buy Twitter (TWTR: -5.1%). The billionaire claims that the social network provided false user data and the number of spam bots in it is significantly more than officially stated. Twitter intends to force Elon Musk to complete the acquisition of the company for $ 44 billion through the court.We expectOn July 8, Fitch downgraded Turkey's rating from B+ to B. The rating change is due to the achievement of inflation in the country at a maximum of 78.2% in 24 years, as well as general concerns about the state of the country's economy. Moody's, in turn, lowered the rating of Mexico by one notch, to Baa2, due to negative assessments of the prospects of the economy and the financial condition of the country. Thus, it is placed two steps above the "junk" rating, on the same level with the corresponding assessments of Uruguay and the Philippines, and now coincides with the sovereign rating from S&P Global at the BBB level. The reduction of the sovereign credit ratings of Mexico and Turkey by leading agencies may entail similar actions against other states.The yield of two—year and ten-year treasuries at the end of trading last week increased by 34 bps and 7 bps - to 3.12% and 3.1%, respectively. Until there are clear signs of a slowdown in inflation in the US, we consider the most likely movement of the yield of the "ten-year" to 3.5%.Trading on July 11 on the sites of Southeast Asia ended in the red zone. China's CSI 300 lost 1.67%, Hong Kong's Hang Seng fell 2.77%, and Japan's Nikkei 225 fell 1.14%.Brent crude futures are quoted at $107 per barrel. Gold is trading at $1,740 per troy ounce.In our opinion, the S&P 500 will hold the upcoming session in the range of 3850-3920 points.MacrostatisticsNo significant macro statistics are scheduled to be published today.Sentiment IndexThe sentiment index remained unchanged.Technical pictureThe closest support for the S&P 500 remains the range of 3600-3660 points. The RSI and MACD indicators do not give certain signals for a trend reversal, but we do not rule out a rebound to 4000.In sightPepsiCo will publish its second quarter reports on July 12. So far, the corporation has remained profitable, despite the rising costs of labor, transportation and raw materials. The record acceleration in inflation over the past few months calls into question PepsiCo's ability to continue to cope with rising costs and continue to generate profits. Analysts' consensus puts PepsiCo's revenue for the second quarter at $19.49 billion with earnings per share (EPS) of $1.74, which means growth of 1.4% and 1.16% YoY, respectively.The largest US bank by assets, JPMorgan Chase & Co. (JPM), will report for the second quarter of the current calendar year on July 14. The FactSet consensus assumes an increase in the bank's net revenue by 4.3% YoY, to $31.82 billion. At the same time, due to the increase in reserves and investments, EPS is projected to decrease by 21.7% YoY, to $2.96. JPM's net interest income may exceed last year's result by 16% due to an increase in consumer lending volumes. Taking into account the accelerated increase in interest rates and an increase in lending volumes, JPM raised its forecast of net interest income by the end of 2022 from $53 billion to more than $56 billion, which implies an increase of 8% YoY. Pressure on revenue will be exerted by cooling demand for mortgage and car loans. According to the results of the reporting quarter, investment banking revenues are expected to fall by 44% YoY due to low activity in the IPO market. The revenue of the trading direction may increase by 15-20% due to increased market volatility. Note that due to the tightening of capital adequacy requirements following the results of the Fed stress test, JPM retained its quarterly dividend at $1.00 per share, which implies a yield of 3.28% per ...

PepsiCo (NYSE: PEP) revenue for the fourth quarter of 2021 exceeded consensus by $1 billion. At the same time, the company announced an increase in the cost of production of snacks and carbonated drinks, as well as an increase in the cost of their placement in stores.PepsiCo's results are influenced by inflation. The manufacturer of chips and snacks Frito-Lay North America notes the increase in the cost of vegetable oil and packaging. PepsiCo Beverages North America, which is engaged in the production of carbonated beverages, recorded an increase in the cost of transportation and raw materials.In this regard, the company has increased product prices. In October, a price increase was announced in the first fiscal quarter of 2022. This did not affect the demand for the corporation's products.PepsiCo Chief Financial Officer Hugh Johnston said the continued loyalty of consumers to brands, which allows the company to raise prices.The corporation's net profit for the fourth quarter decreased from last year's $1.85 billion ($1.33 per share) to $1.32 billion ($0.95 per share). However, excluding one-time factors, EPS was $1.53, slightly exceeding the consensus of FactSet, which laid the indicator at $1.52. PepsiCo's net sales increased by 12% to $25.25 billion, with a forecast of $24.24 billion.Total organic revenue (excluding acquisitions and asset sales) increased by 11.9% in the quarter. The corporation's forecast for the current year suggests a slowdown in growth to 6%, almost 10% compared to last year's pace.Frito-Lay's organic revenue increased by 13% in the quarter. In the beverage segment, the indicator rose by 12%, the revenue of Quaker Foods in North America increased by 9%. In Latin America, this indicator increased higher than in other regions of presence — by 17%.PepsiCo expects to return about $7.7 billion to shareholders this year. Of this amount, $6.2 billion will be allocated for dividends, and $1.5 billion for share repurchase.Quite predictably, PepsiCo pointed out the existence of problems with supply chains, as well as an increase in the cost of raw materials and transportation. The dynamics of the corporation's revenue was caused by both an increase in prices for its products and a stable demand for it. This proves that PepsiCo is able to effectively transfer its costs to the buyer. PepsiCo's business is better diversified than that of its main competitor Coca-Cola. An increase in the buyback program will allow the company to keep quotes from serious drawdowns. Our target price for PepsiCo stock is ...

The American multinational corporation in the food industry, manufacturer of soft drinks and other food products PepsiCo reported the results of the second quarter of 2021. The shares reacted with an increase of +2.3%.The share price of PepsiCo, after falling as a result of the outbreak of the pandemic, recovered faster than that of Coca-Cola. The corporation's securities continue to update historical highs. Above expectations PepsiCo reported revenue growth to $19.22 billion (+20.5% YoY). Analysts ' forecast was at the level of $17.94 billion. The indicator of organic growth increased by +12.8%. Earnings per share were $1.72 compared to $ 1.53 according to analysts ' forecast. Net profit rose to $2.36 billion from $1.65 billion a year earlier.Most of the revenue came from the divisions of the corporation Frito-Lay North America (the brands Lay's, Cheetos, Doritos, etc.) and PepsiCo Beverages North America. According to the results of the report, the highest sales growth rates of the corporation fell on the countries of Africa, the Middle East and South Asia — +63%.PepsiCo said it expects profit growth of 11% in the second half of the year, as well as organic revenue growth of 6%. Both forecasts were higher than previous expectations. The corporation plans to increase the prices of its products after Labor Day. Factors such as disruptions in global supply chains and increased demand have led to higher prices for raw materials. US inflation is growing at the fastest pace since 2008. The consumer price index in monthly terms for June was 0.9%.By 2026, PepsiCo expects to achieve annual savings of at least $1 billion due to the implementation of the labor productivity improvement program. In addition, the corporation is going to carry out a wide introduction of automation in the near future, as a result of which pre-tax fees should amount to about $3.15 billion. What should an investor do At the moment, from the point of view of technical analysis, there are no signals for new purchases. If the shares were purchased earlier, then the current levels may be attractive for fixing part of the profit. The indicators indicate a local overbought on the weekly timeframe — the formation of a local correction is possible. There is no signal to completely close positions.It is reasonable to leave the remaining part of the shares, if they are available, in the portfolio for long-term investment. It is likely that the company's indicators will continue to grow in the second half of the year, which will positively affect the price of securities. PepsiCo shares belong to the consumer goods sector and have repeatedly demonstrated themselves well when the market is declining, falling less or even giving the investor a chance to earn in difficult times.The company's capitalization is $211.3 billion. Analysts' consensus forecast for PepsiCo shares is $163 per share, which is 6.5% higher than the current price of ...