To The Moon

$Pepsi(PEP)$ is scheduled to release their earnings on 13 Jul pre-market, as it is one of the consumer staples stocks that I have been monitoring for defensive strategy against the rate hike and economic uncertainty.

Last Earnings Report Highlight and Guidance

During the last earning report in April 25, PepsiCo CEO has signal softer approach on pricing for 2023, raises full-year guidance on improved productivity and elasticity.

They are also expecting full-year 2023 organic revenue to increase 8 percent (previously 6 percent) and core constant currency EPS to increase 9 percent (previously 8 percent).

They have launched the initiative and remain committed to our strategic agenda and will continue to invest in our people, brands, supply chain, go-to-market systems, and digitization initiatives to build competitive advantages and win in the marketplace.

Earning Data

I would think PepsiCo (PEP) can beat the EPS forecast of $1.96 not by a huge margin as demand for their products have been growing.

As we can see that the EPS have beat estimate for the last 3 quarters. But I am more interested to see what other competitive advantage they might have build up.

Investor Holdings and Sentiment

Investor are positive of PEP stock price and also its future, I would expect it to have some price adjustment days before its earnings.

Investors are increasing their holdings over the last 7 days and 30 days.

But that might present a good opportunity to buy it.

Technical Analysis

Looking at SMA, PEP price is moving significant below the 50-period moving average, and it has been closing at that level, this could indicate a signal of a possible trend change to the downside.

To confirm this, we do not see any Golden Cross for PEP over the last 6 months.

Hence, in order to trade on earnings report, we might see a very small upside but this might not last.

Summary

PEP does have the potential to have a better than estimate EPS, but if we analyze how it has been trading, it seem like they would need a pretty strong increase and positive earnings to really see a surge in its stock price.

Market sentiment also look positive for PEP.

From SMA analysis, it look like it might be trending to the downside, this could possible give us a good reason to buy at a low price.

Appreciate if you could share your thoughts in the comment section whether you think PEP stock is worth buying now before its earning report on 13 Jul?

@TigerStars @Daily_Discussion @TigerWire appreciate if you could feature this article so that fellow tiger would benefit from my investing and trading thoughts.

Disclaimer: The analysis and result presented does not recommend or suggest any investing in the said stock. This is purely for Analysis.)