Main financial assets discussed: PepsiCo, Inc. stock (NASDAQ: PEP)
Top 3 key points:
1. North America contributes the most to PepsiCo's revenues and operating margin.
2. PepsiCo generates only 5% of its revenue from high-margin concentrate sales, compared to 56% for The Coca-Cola Company.
3. FritoLay is the most important contributor to PepsiCo's operating margin.
Recommended actions: **Sell** or **Hold**. The article suggests that PepsiCo's stock may be overvalued by about 32% and there is a more than 90% chance that the stock is overvalued at the current price. However, the article also acknowledges that many individual investors may hold the stock with a low-cost basis and may choose to continue holding it for dividend payments.
Stocks closed lower Thursday despite Nvidia's blowout earnings results, as new data brought mixed signals for the economy’s trajectory and big tech stocks like Tesla and Amazon.com dragged down major indexes.
The U.S. stock market closed lower as an earlier rally driven by Nvidia's earnings report fizzled out, while treasury yields increased, and the S&P 500 is on track to end its five-month winning streak, with concerns over the Federal Reserve Chair Jerome Powell's speech at Jackson Hole weighing on investors.
While Coca-Cola stock has not outperformed the market in recent years, its reliable dividend and strong brand make it a worthwhile investment for those seeking a stable addition to their portfolio.
Summary: U.S. stock markets closed mixed as the key inflation data for July showed steady price increases, with the Nasdaq up 0.1% and extending its winning streak to five days, while the S&P 500 closed down 0.2% and the Dow Jones Industrial Average fell 0.5%.
Kraft Heinz closed the most recent trading day down 1.72%, but analysts are optimistic about the company's next earnings report and estimate year-over-year growth of 4.76%; the stock currently has a Zacks Rank of #3 (Hold) with a discounted valuation compared to its industry average.
Boeing's stock closed at $223.40, with a decline of 0.28% from the previous day, as analysts await its upcoming earnings report. The company is projected to report a year-over-year growth of 94.82%, with estimated quarterly revenue of $20.09 billion. However, recent changes in analyst estimates suggest that short-term business trends are evolving.
Oracle stock closed trading Tuesday up 2.5% after an analyst upgraded the company's stock, citing its cloud business growth and potential as an artificial intelligence leader.
The Charles Schwab Corporation closed at $59.68, down 1.36% from the previous day, and is expected to report lower earnings and revenue in its upcoming release.
Wall Street stocks closed lower as Apple's fall event began and investors awaited key inflation data, with the Nasdaq Composite dropping over 1% and the S&P 500 decreasing by approximately 0.6%.
Coca-Cola is currently a hold, as it holds a dominant position in the beverage industry with a strong market share and brand value, but its projected growth rate and valuation are not compelling enough for investment compared to alternative options like the U.S. 5-year treasury bond.
Stocks closed lower on Wednesday as Wall Street analyzed the Federal Reserve's decision to keep interest rates steady, with the tech-heavy Nasdaq sinking the most, while the Fed's updated forecast showed that interest rates will remain higher for longer than previously anticipated.
PepsiCo's stock demonstrated a slight increase in the recent trading session but has experienced losses over the past month, with investors closely monitoring the company's upcoming earnings report which is projected to show an increase in EPS and revenue compared to the previous year. Analyst estimates and the company's Zacks Rank of #4 (Sell) suggest caution, and its valuation indicates a premium in trading.
Carvana's stock closed at $37.63, down 1.52% from the previous session, as investors await the company's upcoming financial results which are predicted to show growth in EPS.
Plug Power closed at $6.40, a -1.99% decline from the previous day, and the stock has fallen 22.72% in the past month, with upcoming earnings and analyst estimate changes being of interest to investors.
Beverage stocks traded weak due to various factors including lower expectations for PepsiCo's upcoming earnings conference due to potential weak volume/share and downtrading pressures.
Shares of Coca-Cola Co. fell 4.1% due to concerns about high interest rates and a slowing job market impacting the U.S. economy.
Boeing's stock closed with a slight increase of +0.59% and is set to release its earnings report on October 25, 2023, with an expected upward movement in EPS and revenue compared to the previous year.
Stocks closed higher on Friday, driven by technology shares, as investors analyzed the September jobs report showing an increase in US hiring but a slowdown in wage growth.
Coca-Cola's stock has seen a decrease of 7.32% in the past month, and investors are eagerly awaiting the upcoming earnings release on October 24, 2023, which is projected to have steady earnings compared to the previous year.
Coca-Cola's recent decline in stock price creates a great opportunity for investors, as the company's strong sales performance, strategic expansion into diverse beverage options, and ability to generate free cash flow make it a compelling long-term investment.
NIO Inc.'s stock closed at $7.59, showing a slight increase compared to the prior day, while the company's upcoming earnings release and analyst estimates for the quarter are garnering attention from investors.
Stocks closed higher on Tuesday as investors awaited big tech earnings reports, with the Dow Jones Industrial Average, S&P 500, and Nasdaq Composite all recording gains; attention is firmly focused on the flood of big-name earnings reports.
