PepsiCo’s first quarter saw revenue surpass Wall Street expectations, yet the market responded negatively due to declining sales and a slight miss on non-GAAP profit. Management attributed the softness primarily to persistent volume declines in North America snacks, particularly at Frito-Lay, and ongoing consumer caution. CEO Ramon Laguarta noted early signs of improvement from new price pack strategies but described the operating environment as “complex,” citing evolving consumer behavior and the lingering impact of last year’s SAP system rollout at Frito-Lay. The company also pointed to international operations as a bright spot, helping to offset domestic headwinds.
Congress bought and sold stocks in May, raising no red flags but highlighting opportunities in the tech sector, including critical semiconductor companies.
Large-cap stocks usually command their industries because they have the scale to drive market trends.
The flip side though is that their sheer size can limit growth as expanding further becomes an increasingly challenging task.
PepsiCo and Coca-Cola remain one of the most polarizing business duos in the market, with each highly popular thanks to decades of successful operations.
Shares of energy drink company Celsius (NASDAQ:CELH)
jumped 6% in the afternoon session after TD Cowen upgraded the stock from Hold to Buy, adding that the "growth story is heating back up." The firm expects shares to trade higher amid improved confidence in the brand following the integration of the Alani Nu acquisition and wider distribution.
PepsiCo to end Frito-Lay production in Rancho Cucamonga after 50 years amid Q4 profit drop in the Frito-Lay North America segment and ongoing restructuring efforts.
Hitting a new 52-week low can be a pivotal moment for any stock.
These floors often mark either the beginning of a turnaround story or confirmation that a company faces serious headwinds.
Over the past six months, PepsiCo’s stock price fell to $130.15. Shareholders have lost 18.6% of their capital, disappointing when considering the S&P 500 was flat. This may have investors wondering how to approach the situation.
