PepsiCo stock: buy or sell
Updated on:
Apr 22nd, 2021
2
PepsiCo stock brief
- After hitting new all-time highs on Wednesday, PepsiCo closed at $146.98 slightly moving a 0.87%
- It's been 5 consecutive sessions in positive for PepsiCo, gaining a 3.28%
- The price is currently above the upper Bollinger band, which often indicates a short-term correction
- UBS Group posted a strong positive rating for PepsiCo on Wednesday, with a target of $165.00
- On April 15, PepsiCo released its Q1 earnings report
- PepsiCo, Inc. operates as a food and beverage company worldwide.
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?
Currently, PepsiCo stock matches one trading strategy:
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 shares price doesn't have upper resistances, and usually it scales quickly. However, you must always be aware of a possible bulls trap that may trigger your buy order and then falls sharply. That's why a stop loss is always important. PepsiCo can break to all-time highs any time soon, as it only needs to rise a 0.56%. The buy point is at $147.80 if you want to trade with this strategy. The stop loss would be set at $133.02
| Buy setup | Buy point | Stop loss | Risk |
| ATH buy setup | $147.80 | $133.02 | 10.00% |
Should I sell PepsiCo stock?
Knowing when to sell a stock is even harder than knowing when to buy it. Trading strategies help us to avoid impetuous decisions based on our personal emotions or the noise that surrounds the market. We like very simple setups to guide us on when is a good moment to sell a stock. Be aware that these setups are not intended for shorting $PEP stock
As a rule of thumb, you should never keep an investment that results in greater losses than those expected by the time of purchase. The moment to sell shares should always be determined 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 shares and your operation is in profit probably is not time to sell now
PepsiCo ratings
In the last 30 days, 8 analyst ratings were published for PepsiCo
| Brokerage firm | Rating |
|---|---|
| Mar 29th, 2021 | |
| Barclays | |
| Apr 1st, 2021 | |
| Guggenheim | |
| Apr 12th, 2021 | |
| Wolfe Research | |
| Apr 16th, 2021 | |
| Credit Suisse Group | Buy |
| Deutsche Bank Aktiengesellschaft | Neutral |
| Morgan Stanley | Buy |
| Apr 19th, 2021 | |
| Wolfe Research | |
| Apr 21st, 2021 | |
| UBS Group | Neutral → |
PepsiCo stock analysis
$PEP at Highs
PepsiCo hit all-time highs (ATH) on Wednesday at $147.80, and cleared the field for new highs as there are no further resistances. Previous ATHs were in December 2020
SMAs overview
Supports and resistances
The current resistance levels are:
The current support levels are:
Bollinger bands
The current range between the upper and lower bands is 4.47%, indicating that price volatility is at very low levels. The narrowness of the Bollinger bands is often a signal of a sharp price movement (up or down), so we must be cautious and manage our buy or sell orders accordingly
Relative strength index
Broke through the overbought line Wednesday, marking a reading of 71.8. Breaking through above the overvalued zone is not a sell signal, as stocks can rise during several weeks being above the level of 70
PepsiCo stock price history
PepsiCo went public 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 $1,000USD 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. However, many stock price forecasts are posted every day by banks, financial institutions and independent analysts.
The following table shows the price forecasts released by financial institutions in the last month. Again, these forecasts are not direct recommendations for individual investors and must not be trusted blindly.
There are 5 price forecasts posted for PepsiCo that average $156.60. PepsiCo closed at $146.98 on Wednesday, that is a 6.14% than the predicted price.
| Brokerage firm | Price target |
|---|---|
| Mar 29th, 2021 | |
| Barclays | $151.00 |
| Apr 1st, 2021 | |
| Guggenheim | Not available |
| Apr 12th, 2021 | |
| Wolfe Research | Not available |
| Apr 16th, 2021 | |
| Credit Suisse Group | $144.00 → $155.00 |
| Deutsche Bank Aktiengesellschaft | $145.00 → $147.00 |
| Morgan Stanley | $158.00 → $165.00 |
| Apr 19th, 2021 | |
| Wolfe Research | Not available |
| Apr 21st, 2021 | |
| UBS Group | $145.00 → $165.00 |
Earnings and financials
PepsiCo ($PEP) hosted the financial event and posted the report on April 15. PepsiCo reported earnings of $1.21 per share on sales of $14.8 billion. The market estimate was $1.12 per share on revenue of $14.6 billion.
This compares to Earnings of $1.07 per share same quarter last year, so reported EPS means an improvement of 13.08%. Looking at revenue, figures moved up a 6.76% compared to $138.8B same quarter 12 months ago.PepsiCo ($PEP) is hosting the earnings call next July. Estimated for this quarter is $1.52, compared to $1.21 that was reported for Q1.
PepsiCo performance
| Company | 1m | 3m | 6m |
|---|---|---|---|
| PepsiCo ($PEP) | 6.20% | 5.60% | 5.80% |
Disclaimer:
The opinions contained in this post are personal and not recommendations for you to buy or sell stocks. The author of this report does not know the specific scenarios of the reader, his or her own finances or his or her own best interests at any given time. All users should speak with their financial advisor before buying or selling any securities Comments are expressed for educative reasons onlyPepsiCo summary
| Wednesday, April 21st, 2021 | |
|---|---|
| Open | $147.35 |
| Close | $146.98 |
| Day range | $146.21 - $147.8 |
| Previous close | $145.71 |
| Session gain | 0.87% |
| Average true range | $2.20 |
| 50d mov avg | $136.64 |
| 100d mov avg | $139.28 |
| 200d mov avg | $137.24 |
| Earnings date | July 12th, 2021 |