PepsiCo’s stock price (PEP) is at an all-time high one week before the Q2 2021 earnings are announced. UBS has upgraded its target for PepsiCo shares to $165 while Deutsche Bank holds its $149/share estimate.

One of the leaders in the soft drinks industry, PepsiCo is active in the consumer staples sector. PepsiCo's stock price is hovering near its all-time high as analysts remain optimistic regarding the company’s ability to beat estimates.

PepsiCo is a dividend-paying company with an impressive dividend growth history of forty-nine years and a payout ratio of 70.62%. The company was founded in 1898, is headquartered in Purchase, New York, and employs close to 300,000 people worldwide.

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PepsiCo Q2 2021 Earnings Expectations

The company is known for its ability to beat market expectations. A quick look at the past four quarters shows that its Earnings Per Share (EPS) have beaten the estimates consistently.

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For the past quarter, the market expects an EPS of $1.53, up 15.93% YoY. If PepsiCo beats expectations again, the chances are that we will see another run towards the all-time high.

PepsiCo’s profitability is attractive too. The company’s gross profit margin TTM (Trailing Twelve Months) is 54.73%, well above the sector median of 35.59%, thus having a difference to the sector of over 50%.

Profitability is even more impressive if we have a look at another metric – return on common equity. For the past twelve months, the return on common equity reached 54.69%, beating the sector median by a mile (11.49%).

Analysts Opinions

Most analysts’ opinions regarding PepsiCo stock price are either buy or neutral. Recently, both UBS and Morgan Stanley have raised their estimates for the PepsiCo share price. UBS, for instance, sees it at $165/share.

Yesterday, the US stock market fell after the ISM Non-Manufacturing release fell short of expectations. The generalized decline in the stock market prices may have a bearish effect on the PepsiCo stock price too. However, if the company beats Q2 2021 expectations, as it did in the past, investors will likely bid for its price again.

The PepsiCo stock price is flat for the year so far and up 12% in the past twelve months. Dividend-seeking investors love the company for its long dividend growth history and strong financial position.