What happened?

PepsiCo released the solid Q1 financial figures on Wednesday. The stock rose to an all-time high around $127.

Why is it important?

In general

PepsiCo reported a first-quarter profit of $1.41 billion, or $1 a share, up from $1.34 billion, or 94 cents a share compared with the same period last year.

For investors

One of the main drivers of the company’s sales was the higher demand for snacks, sparkling water, and low-sugar sodas. The Frito-Lay division in North America performed really well and boosted the overall profit.

The good thing is that PepsiCo has been adapting its portfolio to changing consumer tastes. To do so, it acquired healthy snack maker Bare Foods. Investors appreciate the proactive stance of the firm, and this is reflected in the recent surge of the stock’s price.

Have a look at the company’s outlook for this year. It expects EPS to account for $5.50 in 2019. In 2018, this figure was 3% higher. The company also projects organic revenue growth of 4%. All in all, we are talking about sustainable development but without any kind of explosive growth. The fact that PepsiCo plans to make significant investments in areas that would boost its manufacturing capacity, advertising and marketing in the upcoming quarters is certainly a positive factor in the long-term.

For traders

The previous resistance line in the $126 area will now provide support ahead of a number of previous highs in the $122 zone. The natural resistance will be located at $130.

The daily chart of PepsiCo Inc.
PepsiCo Inc., daily chart

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