PepsiCo Stock Inches Higher After Upbeat Quarter

Options bulls are blasting the May 180 call

Deputy Editor
Apr 26, 2022 at 11:04 AM
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Soda giant PepsiCo, Inc. (NASDAQ:PEP) announced earnings of $1.29 per share on revenue of $16.20 billion ahead of the open this morning, beating analyst expectations of $1.23 per share on $15.53 billion. The company noted demand remained steady, despite several rounds of price hikes, and also raised its 2022 revenue forecast. PEP is inching higher in response, up 0.8% to trade at $175.12. 

The stock is still trading near its Jan. 21, record high of $177.24, after touching that peak earlier this month. Longer term, the 320-day moving average has provided support since March 2021, and caught last month's pullback to the $153 level. Year-to-date, PepsiCo stock is hovering just above breakeven. 

So far today, options volume is running at five times the intraday average, and pacing for the top percentile of its annual range. Bulls are winning out, with 24,000 calls traded, as opposed to 5,568 puts. The May 180 call is the most popular by far, with new positions being bought to open there. 

Analysts have yet to respond to the event, but eight of the 10 in coverage already carry a "strong buy" rating on PEP. Meanwhile, the 12-month consensus price target of $182.10 is a slim 4.6% premium to current levels, but represents never-before-seen territory for the stock. 


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