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The Best Options Trade for PepsiCo (PEP) Earnings

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On Thursday, September 29th, PepsiCo (PEP - Free Report) will release its Q2 earnings results before the bell. The company is a Zacks Rank #4 (Sell), and they were downgraded within the last 30 days due to downward revisions in their earnings estimates.

Dave will investigate PepsiCo’s past earnings, look at what is currently going on with the company, and give us his thoughts on their upcoming earnings announcement.

Furthermore, Dave will uncover some potential options trades for investors looking to make a play on PepsiCo ahead of earnings.

PepsiCo Inc. in Focus

PepisCo Inc. consists of: Frito-Lay Company, Pepsi-Cola Company, and Tropicana Products. PepsiCo brands are among the best known and most respected in the world and are available in countries and territories throughout the world. PepsiCo's success is the result of superior products, high standards of performance, distinctive competitive strategies and the high integrity of its people.

PepsiCo is expected to report earnings at $1.32 per share according to the Zacks Consensus Estimate. Last quarter they reported an earnings at $1.35 per share beating the Zack’s Consensus Estimate of $1.28 per share, and they have an average surprise of 5.62% over the last four quarters.

PEPSICO INC Price, Consensus and EPS Surprise

PEPSICO INC Price, Consensus and EPS Surprise | PEPSICO INC Quote

PepsiCo is trading just above $107 a share, and they are just shy of their 52-week high of $110.94 per share.

The Zacks Industry Rank classifies PepsiCo Ltd. in the Beverages – Soft Drinks Industry, and their industry is in the bottom 40%. The soft drink industry is difficult to gauge since consumer demands are constantly changing, and companies are doing their best to meet consumers’ expectations. Furthermore, PepsiCo has difficult competition from giants such as Coca-Cola (CCE - Free Report) and Dr. Pepper Snapple (DPS - Free Report) .

Bottom Line

How should investors play PepsiCo ahead of their earnings report? For insights on the best options trades, make sure to watch Dave Bartosiak at 1:00pm CST next Tuesday to see if he’ll be bullish, or bearish. If you are interested in Dave’s exclusive live streams and service, then sign up for Zacks Live Trader.

In-Depth Zacks Research for the Tickers Above

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Coca-Cola European Partners PLC (CCE) - free report >>

Dr Pepper Snapple Group, Inc (DPS) - free report >>

Pepsico, Inc. (PEP) - free report >>

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