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PepsiCo Stock Struggles Amid Weak Revenue and Guidance CutPepsiCo Inc. (NASDAQ: NASDAQ:PEP ) has long been a staple of the food and beverage industry, with a reputation for consistent growth and strong brand recognition. However, recent performance suggests a slowdown in momentum, as both technical indicators and fundamental data point to challenges ahead for the stock. Declining Revenue and Softened Outlook On Tuesday, PepsiCo (NASDAQ: NASDAQ:PEP ) reported its fiscal third-quarter results, revealing a mixed performance that failed to meet Wall Street's expectations. The company posted earnings per share of $2.31, narrowly surpassing analyst expectations of $2.29, but its revenue of $23.32 billion fell short of the anticipated $23.76 billion ugh too bad. This marks a 0.6% decline in net sales compared to the same quarter last year. The revenue shortfall is largely attributed to the impact of product recalls in its Quaker Foods North America division, a key segment of the company’s portfolio. Quaker Foods saw a 13% volume drop following recalls related to salmonella contamination and the subsequent closure of a production facility. The weakening demand in the U.S. market, alongside disruptions in international markets such as Latin America and the Middle East (Tensions between Israel, Iran and Lebanon), exacerbated PepsiCo's woes. PepsiCo CEO Ramon Laguarta acknowledged the challenges, noting that weaker-than-expected sales, particularly in its snack and beverage divisions, have weighed heavily on the company's outlook. As a result, PepsiCo (NASDAQ: NASDAQ:PEP ) trimmed its full-year organic revenue growth forecast, now expecting only a low-single-digit rise, down from the previous 4% projection. Moreover, despite some resilience in brands like Gatorade and Pepsi within the North American beverage segment, overall volume declined by 3%, underscoring the broader slowdown in consumer demand. Rising inflation and shifts in consumer behavior have prompted shoppers across various income levels to cut back on discretionary spending, especially on premium products. Let's check out what the Technical data says From a technical perspective, PepsiCo’s stock is reflecting the underlying weaknesses in its business. After consolidating within a tight range for much of the year, NASDAQ:PEP has now formed a bearish reversal pattern, signaling the potential for further downside. As of the latest premarket trading, the stock is down 0.66%, and its technical indicators suggest that more selling pressure may be on the horizon. The relative strength index (RSI) stands at 32.74, inching closer to the oversold territory, which reflects a growing bearish sentiment. An RSI reading below 30 typically indicates that a stock is oversold, but NASDAQ:PEP is dangerously close to crossing that threshold, which could spur a wave of panic selling. Furthermore, PepsiCo's stock is currently trading below its key moving averages, with the 50-day, 100-day, and 200-day moving averages converging at a critical juncture. When these averages converge and begin to trend downward, it often signals that a stock could face extended bearish momentum. In this case, the bearish crossover suggests that NASDAQ:PEP may experience further downside movement in the near term. The stock is also hovering near a crucial support level at $158, a pivot point that, if breached, could open the door to a steeper decline. Should NASDAQ:PEP break below this support, it may revisit its recent lows, potentially entering a more prolonged bearish trend. Conclusion: A Cautious Outlook for PepsiCo Investors PepsiCo's (NASDAQ: NASDAQ:PEP ) revised guidance for organic revenue growth indicates that management is bracing for slower growth ahead, and this cautious outlook has weighed on investor sentiment. From a technical standpoint, PepsiCo’s stock appears vulnerable to further declines, with bearish patterns and weak momentum pointing to the possibility of additional downside. The stock's proximity to a critical support level at $158, coupled with a low RSI and downward-trending moving averages, suggests that investors should exercise caution. PepsiCo (NASDAQ: NASDAQ:PEP ) may face headwinds in the coming months. While the company remains a long-term blue-chip investment, short-term traders and investors should monitor the stock closely for any signs of a reversal, particularly if the stock breaches its key support level. Until the company can demonstrate stronger revenue growth and address its operational challenges, NASDAQ:PEP may continue to underperform relative to market expectations.
NASDAQ:PEPShort
by DEXWireNews
PepsiCo Beats Q1 Revenue ForecastsPepsiCo ( NASDAQ:PEP ), a multinational food, snack, and beverage corporation headquartered in Purchase, New York, exceeded revenue expectations in the first quarter of the year, driven by strong international demand for its snacks and beverages. During the January-April period, the company reported a 2% increase in revenue to $18.3 billion, surpassing Wall Street's $18 billion forecast as per the analysts polled by FactSet. Frito-Lay's revenue rose by 2% in North America, while Pepsi beverage sales increased by 1%. However, sales were impacted by the recall of Quaker Oats cereal, bars, and snacks early in the quarter due to potential salmonella contamination, which caused Quaker Foods sales to plummet by 24% during the quarter. Despite fewer products on grocery shelves in some countries, PepsiCo ( NASDAQ:PEP ) experienced 11% sales growth in Asia Pacific and 10% sales growth in Europe. Carrefour, one of Europe's largest supermarket chains, withdrew PepsiCo products from its shelves in France, Belgium, Spain, and Italy in January due to unacceptable price hikes, but the two companies resolved their pricing dispute, and Carrefour resumed restocking PepsiCo products in early April. To tackle rising ingredient costs, PepsiCo ( NASDAQ:PEP ) has relied heavily on price increases over the last two years. The fourth quarter of 2023 marked the company's eighth consecutive quarter of double-digit percentage price hikes. However, these increases moderated in the first quarter, with PepsiCo reporting a 5% global net pricing increase and a 2% decline in volumes. The company attributed some of the volume decline to a strategic move to shrink package sizes to meet consumer demand for convenience and portion control. Despite all that In premarket trading on Tuesday, PepsiCo's ( NASDAQ:PEP ) shares remained unchanged. PepsiCo's ( NASDAQ:PEP ) net earnings increased by 5.6% to $2 billion in the first quarter. Excluding special items, the company earned $1.61 per share, beating Wall Street's forecast of $1.52. PepsiCo ( NASDAQ:PEP ) stock closed at 68.58 Relative Strength Index (RSI) Monday's trading session above its respective Moving Averages (MA's)
NASDAQ:PEPLong
by DEXWireNews
PepsiCo Navigates Challenges Amidst Earnings BeatPepsiCo (NASDAQ: NASDAQ:PEP ) has once again demonstrated its ability to weather storms and adapt to changing market conditions. The latest quarterly earnings report from the beverage and snack giant paints a nuanced picture of both triumphs and challenges, offering insights into the intricacies of consumer behavior and economic factors influencing purchasing patterns. Earnings Report Despite surpassing Wall Street’s expectations in terms of earnings per share, PepsiCo faced headwinds as its quarterly revenue experienced a slight decline, marking the first downturn in nearly four years. The company attributed this dip to various factors, including high borrowing costs and diminished personal savings affecting consumers’ spending habits, particularly in the North American market. CEO Ramon Laguarta provided valuable insights into the underlying dynamics, noting a slowdown in U.S. sales driven by pricing pressures and shifts in consumer behavior. As consumers increasingly opt for convenience store purchases over at-home consumption, PepsiCo finds itself adjusting its strategies to meet evolving demand patterns. Laguarta’s optimism, however, remains palpable as he points to positive indicators such as low unemployment rates and potential improvements in interest rates and wages, which could bolster consumer spending in the coming months. Delving Deeper Delving deeper into the numbers, PepsiCo’s ( NASDAQ:PEP ) organic revenue saw a commendable 4.5% increase, fueled primarily by higher prices. However, the same pricing strategy has inadvertently dampened demand for the company’s products, leading to a decline in volume. Notably, PepsiCo’s North American divisions, including Quaker Foods and Frito-Lay, experienced volume contractions, with the former grappling with a product recall that affected sales momentum. Future Outlook Looking ahead, PepsiCo ( NASDAQ:PEP ) recalibrates its projections for 2024, anticipating organic revenue growth of at least 4% and an 8% increase in core constant currency earnings per share. While acknowledging the likelihood of a subdued first half of the year, marred by product recalls and geopolitical tensions impacting international sales, the company remains steadfast in its commitment to navigating these challenges with resilience and agility. Conclusion In conclusion, PepsiCo’s ( NASDAQ:PEP ) latest earnings report serves as a testament to its ability to adapt and thrive in a dynamic market environment. By staying attuned to consumer preferences, while also proactively addressing economic headwinds, the company continues to position itself for sustainable growth and long-term success. As the journey unfolds, PepsiCo’s steadfastness in the face of adversity reaffirms its status as a stalwart in the global consumer goods industry.
NASDAQ:PEP
by DEXWireNews
PEP testing key resistancePepsiCo Inc. (PEP) having recently come off long-term support, is now testing key resistance, able to absorb weekly buying pressures. From here, (PEP) can return to long-term support, where a monthly low can be placed. Thus, there is a two-sided framework. Buying at long-term support in anticipation of bullish continuation over the following 5 - 6 months, or waiting for a weekly settlement above key resistance where gains of 20% would be expected over a similar time horizon.
NASDAQ:PEP
by SpecialeAnalysis
PEPSICO: Are you willing to take that risk on the 1W MA200?PEPSICO took a strong fundamental blow yesterday, reaching remarkably oversold technical levels on the 1W timeframe (RSI = 19.097, MACD = -4.010, ADX = 44.557). On today's opening it hit the 1W MA200 for the first time since the March 2020 COVID crash. If it weren't for that crash, PEP would have never broken the long term Channel Up and today's candle would be exactly on its HL bottom. Under the current circumstances it looks like a big risk but every time the stock crossed under the 1W MA200 and the 1W RSI got oversold (under 30.000), it was the buy opportunity of a Cycle. Those two bottoms instantly rebounded to the 0.786 Fibonacci level, so that sets a target for us at 187.00. Are you willing to take that risk? ## If you like our free content follow our profile to get more daily ideas. ## ## Comments and likes are greatly appreciated. ##
NASDAQ:PEPLong
by InvestingScope
6
KO a dividend king a top holding of Buffett LONGOn the 1H chart, KO is well positioned having bounced up from the dynamic support of the deviation line under the mean VWAP and now approaching the POC line of the volume profile over the past month. the dual time frame RS indicator shows lines in the mid-range between oversold and overbought. I believe KO will cycle up towards the dynamic resistance of the upper VWAP lines. I will take a long trade here targeting first 62.25 just below the first upper line for 60% of the trade and then 63.15 for the remaining 405 of the trade. The limit entry by buy stop at 60.1 while the stop loss is under the POC line @ 60.85 the stop loss minimal magnitude sets up a very good risk to reward ratio. I will take several call options as well. Leave a comment if you would like to know those details. While much of the market is sideways or maybe looking to drop, i see KO as diversified and global in its business insulated from currency fluctuations and a consumer staple and so a solid fortress from the chaos now available on a relative bargain sale in keeping with the philosphies of Warren Buffett.
NYSE:KOLong
by AwesomeAvani
3
PEPSICO Testing Lower Highs. Strong buy if broken.Pepsico Inc (PEP) has been trading within a Channel Up pattern for more than 1 year. Currently it has been rejected on the internal Lower Highs trend-line from the May 15 High. As you can see within this Channel Up, every time the price tested such Lower Highs (3 occasions), it had an initial rejection (twice to the 1D MA50 (blue trend-line)) and then broke out. On all occasions, it hit the dotted Higher Highs trend-line, just below the top of the Channel Up. The 1D RSI is on a similar pattern with all those past fractals. As a result, we will be ready to buy after it breaks above the Lower Highs and target the dotted trend-line at 200.00. ------------------------------------------------------------------------------- ** Please LIKE 👍, FOLLOW ✅, SHARE 🙌 and COMMENT ✍ if you enjoy this idea! Also share your ideas and charts in the comments section below! ** ------------------------------------------------------------------------------- 💸💸💸💸💸💸 👇 👇 👇 👇 👇 👇
NASDAQ:PEP
by TradingShot
5
KO trending up LONGKO as a long standing Buffet holding- is a slow mover with a decent dividend. For stock and especially options traders like myself, it is now well positioned for a long trade. KO's recent pivot highs were early to mid May with the highest trading volume at $64 according to the interval volume profile. KO descended mid-May into June 1st and then had a Fib. retracement and reversal. On the 2H chart, KO price has risen ifrom the bottom of the high volume area of the overall while the RSI / MTF ( Chris Moody) shows relative strengths in the range of 50-70 with the one hour TF RSI higher than the 4H TF RSI as a sign of bullish momentum. The triple indicator shows money flow and price momentum both with bullish signals. The Lorentzian AI indicator with machine learning printed a buy signal on July 12th The have added to the chart two VWAP sets of bands anchored about May 1st and June 1st. Price is in a VWAP band breakout moving from between the second negative deviation lines in red and the first negative deviation lines in blue to the current position between the first negative deviation blue lines and the black mean aVWAP lines I see this as a classical opportunity to buy low and sell high. Trade specifics are a stop loss of 60.15 at the first negative deviation bands while the targets are one third of the position at 61.6 ( mean aVWAPs) another third at 63.0 ( first deviation band above aVWAPs) and the final third at 64.4 ( the second upper deviation band ) I will raise the stop loss to break even upon price reaching 61 and in doing so, the trade becomes risk-free. I will devote 3 % of the account to this trade and may opt to take a call options trade as well striking $163 with a DTE of 9-10. I will select an entry buy zooming into onto the 5-15 minute time frame. Profits from a low risk trade like this will be re-deployed into others a bit riskier as a means of stratifying and rebalancing risk and its managment.
NYSE:KOLong
by AwesomeAvani
PepsiCo: Thirst for More 🥤PepsiCo is thirsty for more, heading upwards and striving for the green zone between $195.83 and $212.31 purposefully. Soon, the share should reach its goal and complete wave (I) in white. Afterwards, it should rebound from the upper edge of our pink trend channel and start an extended downwards movement, leaving the pink trend channel on the southern side and dropping below the support at $155.11. There is a 34% chance, though, that PepsiCo might finish wave alt.3 in green in the green zone instead and stop the descent above the support at $155.11. In that case, it should conclude wave alt.4 in green at this level and turn upwards earlier already.
NASDAQ:PEP
by MarketIntel