PEP is a “high quality, well diversified, ticker which can perform well in pretty much any environment,” said a retail watcher on Stocktwits.
PepsiCo stock bucked a market tumble on Friday and gained the highest among consumer stocks, sparking optimism and chatter with retail investors on Stocktwits.
PEP shares rose 3.7% on Friday to an over two-month high, following a 4.2% gain the previous day, driven by a strong earnings report. Meanwhile, the benchmark S&P 500 fell 2.7% on Friday, its worst since April, after U.S. President Donald Trump announced 100% tariffs on China’s new trade barriers, stoking fears of a new phase of U.S.-China escalation.
Although Trump downplayed the severity of the situation in a Trust Social post on Saturday, the standoff would weigh on trading on Monday and the rest of the week.
PepsiCo beat Wall Street estimates for third-quarter revenue and profit, helped by steady demand for its snacks and sodas in key international markets and strength in its healthier drinks category in the United States. It also announced that a CFO will take over next month.
After several quarters of weakness across its snacks division and other markets, analysts and investors viewed PepsiCo’s latest results as signaling a potential turnaround.
Bank of America, Barclays, Jefferies, and Goldman Sachs, among others, raised their price targets on PEP stock following the results. On Stocktwits, the retail sentiment was ‘extremely bullish’ and ‘extremely high’ message volume, unchanged since Friday.
“$PEP Hard to find gems like this in today’s market, a great company with a forward P/E of 18. One of the best buying opportunities out there!” said a user.
Another lauded the defensiveness, calling PEP a “high quality, well diversified, ticker which can perform well in pretty much any environment.”
Despite 5.7% weekly gains last week, PepsiCo shares are still down 6.3% year-to-date.
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