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Pepsi Shows It Can Thrive in Challenging Environments By TipRanks

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© Reuters. Pepsi proves it can survive in difficult environments

PepsiCo’s (NASDAQ:) big lift came from the opening of new economies all over the globe. This was achieved by successfully surmounting supply chain blockages.

The beverage and snack company reported strong Q3 results and increased its full-year outlook on Tuesday morning.

I’m bullish on PEP stock. (See Analysts’ Top Stocks on TipRanks)

A strong performance

PepsiCo’s Q3 core EPS came at $1.79 on $20.2 billion of net revenue. Despite challenges in the supply chain, sales growth was strong for most product categories.

“Given our year-to-date performance, we now expect our full-year organic revenue to increase approximately 8 percent and core constant currency earnings per share to increase at least 11 percent,” said chairman and CEO Ramon Laguarta.

Laguarta attributed PepsiCo’s strong performance to the investments made in digitalizing its operations and developing new products to become faster, stronger, and better.

“To further complement and enhance our strategic framework, we recently introduced PepsiCo Positive (pep+), a fundamental end-to-end transformation of what we do and how we do it to create growth and shared value with sustainability and human capital at the center,” said Laguarta.

“We are extremely pleased with the progress we are making on our strategic agenda and remain committed to the investments in our people, supply chain, plants, go-to-market systems, and digitization initiatives to build competitive advantages and win in the marketplace.”

PepsiCo has grown its operation’s scope and scale throughout the years. Its sales have been twice that of Coca-Cola (NYSE) over the past few years.

Wall Street Take

In the last 12 month’ Pepsi’s shares have gained 16.5%, beating the 11.8% gain of Coca-Cola Co

TipRanks has awarded PepsiCo an excellent Smart Score of 10 thanks to its technical and fundamental strengths, as well as increased activity in hedge funds.

TipRanks analyst ratings consensus rates Pepsi as a Moderate Buy based on eight Buys and six Holds.

Pepsi has an average target price of $166.57 which suggests a 7.5% upside possibility.

The Bottom Line

PepsiCo once again proved that it is capable of surviving and prospering in difficult business environments.

Disclosure: Panos Mourdoukoutas was the owner of shares in PepsiCo at the time this article was published.

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