PepsiCo (PEP) Stock Advances Ahead of Q2 Earnings
NEW YORK (TheStreet) -- Shares of PepsiCo (PEP) - Get Report are higher by 0.86% to $106.54 on Tuesday afternoon ahead of the company's 2016 second quarter results due out before Thursday's opening bell.
Wall Street is expecting the Purchase, NY-based food and beverage company to report earnings of $1.29 per share on revenue of $15.36 billion.
During the same quarter last year, PepsiCo posted core earnings of $1.32 per share on revenue of $15.92 billion.
Deutsche Bank maintained its "buy" rating and $115 price target on the stock ahead of the results.
"Activists might be gone but company continues to be managed with a healthy paranoia focused on delivering slightly above its algorithm while reinvesting savings from sales leverage, benign commodities and restructuring into marketing and capability enhancements," the firm wrote in an analyst note.
In the current low rate, defensive and yield starved market, PepsiCo continues to be a relatively inexpensive safe haven that is unlikely to miss expectations, according to Deutsche Bank.
"While the story may be long in the tooth for some, slow and steady should continue to win the race, secular consumption challenges aside," the firm added.
Additionally, Jefferiesupped its second quarter estimates and maintained its "buy" rating on shares earlier today.
The company's portfolio includes Frito-Lay, Gatorade, Pepsi-Cola, Quaker and Tropicana.
(PepsiCo is held in Jim Cramer's charitable trust Action Alerts PLUS. See all of his holding with a free trial here.)
Separately, TheStreet Ratings Team has a "Buy" rating with a score of B on the stock.
The company's strengths can be seen in multiple areas, such as its notable return on equity, expanding profit margins and solid stock price performance.
Recently, TheStreet Ratings objectively rated this stock according to its "risk-adjusted" total return prospect over a 12-month investment horizon. Not based on the news in any given day, the rating may differ from Jim Cramer's view or that of this articles's author.
You can view the full analysis from the report here: PEP