Beverage king PepsiCo (NASDAQ:PEP) is set to release its second-quarter 2024 earnings on July 11. Analysts are expecting earnings per share to come in at $2.16 versus $2.09 per share reported in the prior-year period. Meanwhile, analysts expect revenues of $22.63 billion, reflecting a 3% year-over-year increase, according to TipRanks’ data.
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Also, PEP has a strong quarterly performance history. It has beaten earnings estimates for eight consecutive quarters (as pictured below), and it’s still possible for earnings to grow in comparison to last year’s results.
Options Traders Anticipate a Minor Move
Using TipRanks’ Options tool, we can see what options traders are expecting from the stock immediately after its earnings report. The expected earnings move is determined by calculating the at-the-money straddle of the options closest to expiration after the earnings announcement. If this sounds complicated, don’t worry, the Options tool does this for you.
Indeed, it currently says that options traders are expecting a 2.82% move in either direction.
Is PEP a Strong Buy?
Turning to Wall Street, analysts have a Moderate Buy consensus rating on PEP stock based on six Buys and four Holds assigned in the past three months, as indicated by the graphic below. After a 9% decline in its share price over the past year, the average PEP price target of $183.33 per share implies a 13% upside potential.
