PepsiCo Stock Climbs on Better-Than-Expected Results
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In the past, PEP stock has demonstrated a significant trend of positive one-day returns after earnings reports.
PepsiCo's quarterly earnings and revenue beat Wall Street's expectations. The company reiterated its full-year outlook. The company also shared details on its turnaround plan, a quarter after it lowered its guidance due to lower consumer spending and President Donald Trump's tariffs.
PepsiCo's 4.2% dividend yield and Q2 earnings boost may lead to a short-lived rebound. Read here for key insights on PEP stock for income-focused investors.
PepsiCo’s stock was having its best day in five years after earnings beat expectations in contrast to a profit miss in the previous quarter.
Historically, PEP stock has shown a strong tendency for positive one-day returns following earnings reports. Over the past five years, the stock has risen on the day after earnings in 78% of instances, with a median positive return of 1.5% and a maximum one-day gain of 3.6%.
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PepsiCo’s Q2 earnings surge highlights growth potential with strong pricing power and efficiency-driven tech investments. See more on PEP stock here.
The S&P 500 added 0.5% on Thursday, July 17, 2025, notching a record closing high for the first time in a week as June retail sales exceeded economists' forecasts.
In assessing financial risk, Coca-Cola performs slightly better than PepsiCo. Coca-Cola’s debt-to-equity ratio of 16% is more advantageous than PepsiCo’s 27%. Moreover, its cash-to-assets ratio of 14% surpasses PepsiCo’s 8%. In essence, Coca-Cola showcases a stronger debt profile while maintaining a more stable cash position.
Major U.S. equities indexes were higher at midday Thursday in the wake of better-than-expected quarterly results from several major companies.