Last week, Pepsi (PEP) posted quarterly results. Revenue fell by 0.6% Y/Y to $23.32 billion. Buyers stepped in after the company returned total cash of around $8.2 billion. Shareholders appreciated the $7.2 billion in dividends and $1.0 billion in stock buybacks.
Pepsi benefits from Gen Z snacking patterns. Expect Lays and Frito brands to thrive with growth in the double-digit percentage.
In the drug manufacturing sector, watch Pfizer (PFE). Starboard Value, an activist, sought to boost the company’s shareholder returns. The investment firm took a nearly $1 billion stake in the company. To increase its value, Pfizer needs to cut costs and buy back more shares.
However, the firm committed to a dividend of $1.68 a share. It may need to either cut its dividend or cut spending in research and development. The markets will not like either option.
In the electric vehicle market, expect Tesla (TSLA) volatility to increase. This might help Rivian Automotive (RIVN) break out of its slump. Still, Rivian is not increasing truck EV sales, while Tesla’s Cybertruck sales remain steady. Speculators should take advantage of any rally in Lucid Group (LCID), General Motors (GM), or Ford (F). The automotive market is saturated, so investors may take profits in the rally.