PepsiCo's Shares Have Stayed Flat in 2021: Can Q2 Earnings Change That?
PepsiCo's (NASDAQ: PEP) stock is right around where it started in 2021. The stock fell initially in the first few months of the year and then bounced back to where it started. That's a meaningful underperformance to the SPDR S&P 500 ETF (NYSEMKT: SPY), which is up 15% year to date.
Part of the cause could be worry from investors that PepsiCo's business will not fare as well when economies reopen. The company did well when folks were staying home and consuming more snacks and beverages there. Another cause for underperformance could be PepsiCo's announcement that it is finished buying back shares for the rest of the year.
Normally, share repurchase announcements are followed by stock price gains. Still, if PepsiCo can report solid results for the second quarter amid economic reopenings, it could assuage some investor concerns.
Source Fool.com
