How to Trade PepsiCo After Fiscal Q3 2024 Performance
Founded in 1898, PepsiCo is an American multinational food and beverage company headquartered in New York. The company operates 23 brands producing around $90 billion in revenue. These include Pepsi, Mountain Dew, 7 Up, Gatorade, Lipton teas, Lay's, Doritos and many others.
Learn more about PepsiCo's fiscal third-quarter 2024 performance and what analysts are forecasting for the stock.
| Stock: | PepsiCo Inc |
| Symbol for Invest.MT5 Account: | PEP |
| Date of Idea: | 8 October 2024 |
| Time Line: | 1 - 6 months |
| Entry Level: | $172.00 |
| Target Level: | $202.00 |
| Position Size for Invest.MT5 Account: | Max 5% |
| Risk: | High |
- The Invest.MT5 account allows you to buy real stocks and shares from some of the largest stock exchanges in the world.
All trading is high risk and you can lose more than you risk on a trade. Never invest more than you can afford to lose, as some trades will lose and some trades will win. Start small to understand your own risk tolerance levels or practice on a demo account first to build your knowledge before investing.
PepsiCo Fiscal Q3 2024 Performance
Here are some of the key highlights from the fiscal third-quarter 2024 earnings report from PepsiCo:
- Earnings per share of $2.31 vs $2.29 expected
- Revenue of $23.32 billion vs $23.76 billion expected
- Net income of $2.93 billion, down from $3.09 billion a year earlier
- Net sales down 0.6%
PepsiCo beat analyst expectations on earnings per share but missed revenue estimates. As such, the company lowered its full-year outlook to low single digits, down from its prior outlook of 4%. Weaker demand in the US, disruptions in international markets and recalls from its Quaker Foods North America brand weighed on the company's performance in the quarter.
While demand has been down across all income levels with shoppers growing more cautious and snacking less, the management team are focused on investing more in Doritos and Tostitos over the football and holiday season.
It is also trying to broaden its brand portfolio with a $1.2 billion purchase of Siete Foods - a Mexican-American food company. While the management team stated in the earnings call that lower demand is just part of the currency economic cycle, they also stated it will "reverse itself in the future."
The mixed outlook is one reason more analysts have a hold rating on the stock, as highlighted below.
PepsiCo Stock Forecast - What do the Analysts Say?
According to 16 analysts polled by TipRanks for an PepsiCo stock forecast in the past 3 months, there are currently 7 buy, 9 hold and 0 sell ratings on the stock. The highest price level for a PepsiCo stock forecast is $202.00 with the lowest price target at $170.00.
The average price target for a PepsiCo stock forecast is $184.81.
An Example Trading Idea for the PepsiCo Stock Price
An example trading idea for the PepsiCo share price could be as follows:
- Buy the stock on a break above $172.00 to allow for volatility.
- Target just below the highest analyst price target of $202.00.
- Keep your risk small at a maximum of 5% of your total account.
- Time Line = 1 – 6 months
- If you buy 10 PepsiCo shares:
- If target is reached = $300.00 potential profit [($202.00 - $172.00) * 10 shares].
Remember that markets go up and down and it is unlikely the share price will move up in a straight line. In fact, it may even go much further down before it rises, especially due to the lower growth forecasts for the year mentioned in the latest earnings call.
Be sure to exercise good risk management and always know how much you could potentially lose on a trade and the risks involved, as well as the costs.
With the Admiral Markets Invest.MT5 account you can buy and sell US stocks with a commission from $0.02 per share. This means buying 10 shares in PepsiCo stock would result in a commission of $0.20 ($0.02 * 10 shares) for executing a per-side transaction.
However, there is a low minimum transaction fee of $1. So, the example trading idea above would result in a commission of just $1 overall.
How to Buy PepsiCo Stock in 4 Steps
With Admiral Markets, you can buy shares with a commission of just $0.02 per share and a low minimum commission of just $1 on US stocks.
- Open an account with Admiral Markets to access the dashboard.
- Click on Trade or Invest on one of your live or demo accounts to open the web platform.
- Search for your stock in the search window at the top.
- Input your entry, stop-loss and take profit levels in the trading ticket.
Click on the banner below to trade PepsiCo stock today ▼▼▼
Do You See the PepsiCo Stock Price Moving Differently?
Remember that all analytics and trading ideas are based on the personal view and experience of the author.
If you believe there is a higher chance PepsiCo share price will move lower, then you can also trade short from a CFD (Contracts for Difference) trading account which Admiral Markets also provide.
The Trade.MT5 and Trade.MT4 account allows you to speculate on the price direction of stocks and shares using CFDs.
This means you can trade long and short to potentially profit from rising and falling stock prices.
INFORMATION ABOUT ANALYTICAL MATERIALS:
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