Why did PepsiCo stock fall on 7 October?
Written after the close on
PepsiCo −1.58%
PepsiCo fell sharply as earnings nerves built. Over the last five trading days PepsiCo fell sharply, moving against both a clearly rising broad market and a clearly rising consumer staples sector, with the weakness concentrated in the latest session. The likely driver is the run-up to tomorrow's quarterly report: two analyst downgrades in late September warned that the North American snack turnaround has stalled despite price cuts and plant closures, and commentary has framed the results as a major test of the restructuring pushed by activist investor Elliott. The stock is also being compared unfavourably with Coca-Cola, which has grown volumes and raised its outlook while PepsiCo's North American business struggles. Watch tomorrow's report, where investors will focus on whether US snack volumes are recovering and on the guidance management gives.
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