Pepsico Stock in Full Retreat Ahead of Earnings

Pepsico, Inc. and other traditional high-yielding equities have fallen out of favor in the second half of 2017, with market players seeking growth over safety despite the most volatile news flow in years. Even so, Pepsico has done a great job rewarding long-term shareholders, unmarred by a steep decline that posted a six-month low on Monday after Jefferies downgraded the stock from “Buy” to “Hold.”

Pepsico is due to report third quarter earnings after the close on Oct. 4, offering a fresh opportunity for committed buyers to step up to the plate, but the results need to dazzle after Dr. Pepper Snapple Group, Inc. lowered 2017 EPS guidance on Sept. 20. The rival cited supply disruptions as a result of U.S. hurricanes and Mexican earthquakes, raising fears that the entire industry will miss quarterly estimates. (See also: How Stocks, Economy Will Suffer From Irma, Harvey.)

Pepsico shares hit a six-month low on Monday after a Jefferies downgrade stoked fears about hurricane disruptions. …read more

Read more here: Pepsico Stock in Full Retreat Ahead of Earnings

Category: PEP

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