Earnings season kicks off again this week with PepsiCo announcing its Q2 earnings on Tuesday, July 9. The food and beverage giant beat Wall Street’s expectations in Q1, leading to a rally that saw the company’s stock price hitting all-time highs in April.
Since then it has set higher lows and higher highs and looks ready to retest June’s all-time high of $135.
PepsiCo Analysts expecting EPS of $1.51 with revenues of $16.4 billion.
While sugary and diet beverages have been waning in terms of market demand, hitting both PepsiCo and rival Coca-Cola, PepsiCo has a thriving snack business which has been picking up the slack.
So much so, that Q1 was the company’s best quarter in three years.
Another thing Pepsi-Co has going for it is that consumer staples are considered safer stocks than their high-flying tech counterparts. So, in a climate where trade tensions are escalating and there are fears of a coming economic slowdown, Pepsi-Co shares look like a safer bet.
Particularly since the company also pays a respectable dividend of 2.90% and is looking to spend around $3 billion this year on stock buybacks.
Will PepsiCo crack all-time highs once more on Tuesday, or is its price just a reflection of an overheated stock market?