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Zacks Investment Ideas feature highlights: PepsiCo, Delta Air Lines and UnitedHealth Group

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For Immediate Release

Chicago, IL – October 9, 2023 – Today, Zacks Investment Ideas feature highlights PepsiCo (PEP - Free Report) , Delta Air Lines (DAL - Free Report) and UnitedHealth Group (UNH - Free Report) .

3 Key Quarterly Releases to Watch Next Week

The Q3 earnings cycle will shift into a higher gear next week, with several companies scheduled to reveal quarterly results leading up to 'Big Bank Friday.' It'll be another critical cycle, particularly as the market tries to extend impressive YTD gains.

Outside of the big banks, notable companies scheduled to unveil quarterly releases next week include PepsiCo, Delta Air Lines and UnitedHealth Group. Let's take a deeper dive into what's expected out of each.

PepsiCo

PEP shares have faced adverse price action over the last several months following an impressive start to 2023, down roughly 13% during the period. Analysts have primarily kept their earnings expectations unchanged for the upcoming release, with the $2.17 Zacks Consensus EPS Estimate down just a penny over the last several months.

The consumer staples giant regularly beats quarterly expectations, exceeding both Zacks Consensus earnings and revenue estimates in six consecutive releases.

Still, negative sentiment has taken hold of near-term price action, with shares recently being rejected at the 200-day moving average and heading lower.

It's worth noting that the company upped its FY23 view following its latest quarterly print, citing continued strong business momentum. Our consensus quarterly revenue estimate for PEP stands at $23.4 billion, 6% higher than the year-ago figure.

PepsiCo, a current Zacks Rank #4 (Sell), will report on Tuesday, October 10th, before the market's open.

Delta Air Lines

Delta Air Lines shares have traded somewhat similarly to PEP over the last three months, facing adverse price action following a melt-up during early summer. Analysts moved their expectations lower following a filing on September 14th, with the $1.96 Zacks Consensus EPS Estimate down 17% over the last several months.

DAL shares sold off following its latest release despite posting record quarterly revenue and profitability, likely a reflection of profit-taking following the above-mentioned summer melt-up.

Rising fuel costs throughout the period undoubtedly impacted DAL's quarter to be released. As mentioned above, in September, the company updated previous guidance given in the latest earnings call, now expecting fuel prices of $2.75 - $2.90 per gallon ($2.50 -$2.70 per gallon previously). Our consensus estimate for average fuel price per gallon presently sits at $2.88, 14% higher than $2.52 per gallon in 2023 Q2.

Delta Air Lines, a current Zacks Rank #4 (Sell), will report on Thursday, October 12th, before the market's open.

UnitedHealth Group

Unlike those above, UNH shares have seen favorable action over the last several months, tacking on 14% in value and outperforming the general market. Analysts have taken their expectations modestly lower for the quarter to be released, with the Zacks Consensus EPS Estimate down 2% since July.

The company posted strong balanced growth in its latest release, with both segments posting double-digit percentage year-over-year growth rates. Regarding expectations, UNH exceeded both Zacks Consensus earnings and revenue forecasts, continuing its consistent nature. And given its first-half performance, UNH upped its full-year adjusted EPS outlook to $24.70 - $25.00 per share.

UnitedHealth, a current Zacks Rank #3 (Hold), will report on Friday, October 13th, before the market's open.

Bottom Line

Earnings season is always an exciting time to be an investor, with companies pulling the curtain back and unveiling what's transpired behind closed doors.

And next week, the quarterly reports will really start rolling in.

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Past performance is no guarantee of future results. Inherent in any investment is the potential for loss. This material is being provided for informational purposes only and nothing herein constitutes investment, legal, accounting or tax advice, or a recommendation to buy, sell or hold a security. No recommendation or advice is being given as to whether any investment is suitable for a particular investor. It should not be assumed that any investments in securities, companies, sectors or markets identified and described were or will be profitable. All information is current as of the date of herein and is subject to change without notice. Any views or opinions expressed may not reflect those of the firm as a whole. Zacks Investment Research does not engage in investment banking, market making or asset management activities of any securities. These returns are from hypothetical portfolios consisting of stocks with Zacks Rank = 1 that were rebalanced monthly with zero transaction costs. These are not the returns of actual portfolios of stocks. The S&P 500 is an unmanaged index. Visit https://www.zacks.com/performancefor information about the performance numbers displayed in this press release.


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UnitedHealth Group Incorporated (UNH) - free report >>

Delta Air Lines, Inc. (DAL) - free report >>

PepsiCo, Inc. (PEP) - free report >>

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