PepsiCo stock: buy or sell
Updated on:
Jan 16th, 2021
2
PepsiCo stock brief
- PepsiCo closed on Friday at $141.39 after slightly moving a -0.26%.
- The stock is configuring an uptrend pattern since September 2020, when it bottomed at $128.44. Up to date, shares made a 10.08% profit since the beginning of this rally
- PepsiCo, Inc. operates as a food and beverage company worldwide. The company operates through seven segments: FLNA, QFNA, PBNA, LatAm, Europe, AMESA, and APAC.
Should I buy PepsiCo stock?
Even if you are a experienced or a novel trader, best trading results come from using an investing strategy that never leaves to random or subjective opinions when is the best moment to buy or sell stocks. Trading strategies are meant for helping you in the decision process of what stocks to pick and when is the best moment to buy them. At Stocks2.com, we like to use very simple but trusted and powerful trend following trading strategies. Simple things usually work the best
Is $PEP stock a buy?
In the current situation of PepsiCo there is just one buy setup eligible:
ATH buy setup
All-time Highs is always an excellent buy point for those who like to buy high and sell higher. The good point of buying at all-time highs is that price doesn't have upper resistances, and usually it scales quickly. However, there's the risk of a bulls trap that may trigger your buy order and then falls sharply. That's why a stop loss is always important. Price is now at 5.22% of all-time highs and it can breakout at any time, so if you want to trade this setup it's recommended to setup your order at $148.77. Arm your stop-loss at $133.89
| Buy setup | Buy point | Stop loss | Risk |
| ATH buy setup | $148.77 | $133.89 | 10.00% |
Should I sell PepsiCo stock?
Knowing when to sell a stock is even more difficult than knowing when to buy it. Trading strategies help us to avoid impulsive decisions based on our emotions or the buzz that surrounds the market. Our trading system selects very simple strategies to guide us on when is a good time to sell a stock. Be aware that these strategies should not be used for selling short PepsiCo stock
A guiding principle is that you should never mantain a trade that shows a losses greater than those expected upon the buy. When to sell your stock should always be ruled by the stop-loss (automatic or manual)
Is it time to sell PepsiCo stock?
Currently, PepsiCo stock doesn't match any of our preferred sell setups, so if you own PepsiCo stock and your operation is in profit probably is not time to sell now
Price lost SMA50 level
Last Monday, the price dropped below the 50-d moving average showing that the prior rising trend is likely to have reached its end. This is a good time to check your current setup for this position and determine if it's time to sell
PepsiCo ratings
In the last month, just one analyst rating was published for PepsiCo
| Brokerage firm | Rating |
|---|---|
| Jan 4th, 2021 | |
| Royal Bank of Canada | |
PepsiCo stock analysis
Since in September 2020, PepsiCo has been drawing an uptrend that so far marked an amazing 10.08%. The price action shows higher peaks and troughs, and along the way gave very few buy points for those who wanted to invest. Latest low was last October, when price bounced at $130.78. Now, it swings in a consolidation between its last top ($148.77) and its last bottom ($130.78)
SMAs overview
Supports and resistances
The current resistance levels are:
The current supports are:
Bollinger bands
Since the price broke down the lower band last Tuesday, the price has bounced off by 1.39%. The price is moving very close to the lower Bollinger band, indicating some level of oversold in recent sessions. This is not a buy signal, as price can move in these levels for many days and weeks
Relative strength index
When the moves for so long below 70 and above 30, without showing moments of overvaluation and undervaluation, the indicator is of little use, and we find ourselves in one of these cases.
PepsiCo stock price history
PepsiCo started trading priced at an adjusted price1 of $0.00 on Jun 1972. Since then, PEP stock has risen by -, with an average of 0.00% per year. If you had invested thousand dollars in PepsiCo stock on Jun 1972, it would worth $inf today.
1: Adjusted price after possible price splits or reverse-splits
Price target for PepsiCo stock
How much a stock will be priced tomorrow or next week is quite unpredictable. Banks and financial organisations publish their analysis predicting how a stock will performance in the future.
Along with buy or sell recommendations, financial institutions post their price forecasts based on the stock price action and the company fundamental data. Most of these forecasts follow the publication of new fundamental information by the company, and many times. Again, these estimates are not direct recommendations for individual investors and should not be followed blindly.
There is just one price target available for PepsiCo that predicts a price of $153.00.
| Brokerage firm | Price target |
|---|---|
| Jan 4th, 2021 | |
| Royal Bank of Canada | $153.00 |
Earnings and financials
PepsiCo, Inc. ($PEP) posted quarterly earnings of $1.66 per share last October, upping the Market consensus estimate of $1.49 per share. This Q3 report represents an earnings surprise of 11.41%.
This compares to Earnings of $1.56 per share same quarter last year, so current EPS means a gain of 6.41%. Looking at revenue, figures went down a -12.35% compared to $206.4B same quarter last year.PepsiCo ($PEP) posts Q4 financial report mid next February. Expected for this quarter is $1.46, compared to $1.66 that was reported for Q3.
PepsiCo competitors
PepsiCo belongs to the Consumer Staples sector and the Beverages - Non-Alcoholic industry, which contain industry peers.
PepsiCo biggest competitors are:
| Company | Market cap | Rating | Bullish ratings1 |
|---|---|---|---|
| PepsiCo ($PEP) | $197.5B | Neutral | 0 |
| Coca-Cola ($KO) | $224.2B | Neutral | 1 |
| Unilever ($UL) | $153.3B | Neutral | 0 |
| Mondelez ($MDLZ) | $83.0B | | 1 |
| Monster ($MNST) | $48.8B | Buy | 3 |
| The Kraft Heinz ($KHC) | $41.1B | Neutral | 0 |
| Kellogg ($K) | $21.4B | Neutral | 0 |
1 In the last 30 days.
PepsiCo performance
To better understand PepsiCo stock performance you must compare its gains with other related stocks in same sector or industry.. For PepsiCo, the benchmark is made against Coca-Cola, Unilever, Mondelez, Monster, The Kraft Heinz and Kellogg.
| Company | 1m | 3m | 6m |
|---|---|---|---|
| PepsiCo ($PEP) | -1.80% | 0.50% | 6.50% |
| Coca-Cola ($KO) | -8.50% | 0.40% | 7.60% |
| Unilever ($UL) | 2.50% | -3.20% | 9.40% |
| Mondelez ($MDLZ) | 0.50% | -0.30% | 8.40% |
| Monster ($MNST) | 2.70% | 11.60% | 24.60% |
| The Kraft Heinz ($KHC) | -6.80% | 2.10% | -5.10% |
| Kellogg ($K) | -4.80% | -10.60% | -12.20% |
Disclaimer:
The thoughts expressed in this article are personal and should not be followed as recommendations for you to buy or sell shares. The author of this report does not have an understanding of the particular situations of the reader, his or her finances or what is in his or her best interest at any given time. All users should speak with their financial advisor before buying or selling any securities Comments are posted for learning purposes onlyPepsiCo summary
| Friday, January 15th, 2021 | |
|---|---|
| Open | $141.45 |
| Close | $141.39 |
| Day range | $140.53 - $142.6 |
| Previous close | $141.76 |
| Session gain | -0.26% |
| Average true range | $3.15 |
| 50d mov avg | $143.61 |
| 100d mov avg | $139.91 |
| 200d mov avg | $135.51 |
| Earnings date | February 11th, 2021 |