Group 1 - Walmart is behaving like a technology stock due to its significant investment in its online/digital e-commerce platform, outperforming the Magnificent 7 group over the last year and year-to-date [1][6] - Recent quarterly results have positively impacted Walmart shares, with strong growth in its digital business allowing for additional growth avenues through advertising [2] - The upcoming earnings report estimates $189.9 billion in sales, indicating a 5.2% year-over-year growth, and a Zacks Consensus EPS estimate of $0.73, suggesting a 10.6% year-over-year growth [3] Group 2 - Although the revenue estimate has slightly decreased since last December, the stability in estimates since the beginning of 2026 is a positive indicator [4] - Walmart's margins have shown clear improvement since 2023, which is notable given the company's already large size and retail nature [7] - The company is expected to emphasize its digital efforts in the upcoming earnings release, appealing to both higher-income households and lower/middle-income households with its pricing strategy [8] Group 3 - Other consumer-facing stocks, such as eBay, are also reporting this week, with stable and positive EPS and sales revisions similar to Walmart [9] - eBay's estimates imply a 9% EPS growth on 11.6% higher sales, indicating a strong growth outlook, although Walmart's performance disparity remains significant [12] - Walmart is set to report earnings on Thursday before the market opens, while eBay will report on Wednesday after the market closes, with favorable results from Walmart likely to maintain positive sentiment [13]

Core Insights - PepsiCo reported higher revenue in its fiscal third quarter, but profit declined as volumes fell [1][4] - The company is undergoing a leadership change with the appointment of Steve Schmitt as CFO to address slowing sales and pressure from an activist investor [2][3] Financial Performance - Revenue for the three months ended September 6 was nearly $24 billion, reflecting a 2.7% increase year-over-year, driven by international business resilience and improved North American beverage performance [4] - Organic sales rose by 1.3% during the same period [4] - Profit decreased and volumes fell, with North America, which constitutes about 60% of PepsiCo's business, experiencing a 4% decline in food volumes and a 3% decline in beverage volumes [5] Strategic Focus - The new CFO, Schmitt, will focus on enhancing growth, reorganizing the cost structure, and maximizing brand investment [6] - The company has been reshaping its portfolio by cutting underperforming products and launching new ones aligned with health and wellness trends [6] - Schmitt's experience at Walmart is expected to aid in growing PepsiCo's digital business, which is a priority for the company [7] Market Context - PepsiCo's share price has declined over 15% from a year ago, influenced by its recent performance [8] - Activist investor Elliott Investment Management has acquired a roughly $4 billion stake in PepsiCo and is advocating for refranchising its bottling business and other changes to enhance the company's share price [8]