PepsiCo Inc. (PEP) Stock Crossing $200.00 is a Long Shot

• PEP stock fell 1.48% YTD but gained 2.36% in a year. 
• Price action is trading below the trend line, awaiting a pullback. 

PepsiCo Inc. (NASDAQ: PEP) will invest $175 Million in Instacart, with PEP stock dropping by 1.05%, Cathie Wood warns about looming deflation. The contrasting opinion presented by investor Cathie Wood hints at the drop in rising interest rates. She predicted a hard landing and said the risk ahead is not inflation but deflation. 

PepciCo Inc. (PEP Stock) – Financial Analysis

The beverage giant recently announced a dividend yield of 2.79% with an annual dividend of $5.06, cash of $1.265, and ex-date of August 31, 2023. The payment date for this would be September 29, 2023. Compared to previous iterations, On June 30, PepsiCo provided a similar value of $1.265, which was higher compared to March 31, when the cash dividend was $1.15. 

Per data from Q1 and Q2 2023, sales went from $17.84 Billion to $22.32 Billion, and the sales growth from (-) 36.27% to 25.10%. Gross income from $9.9 Billion to $12.2 Billion, and the gross income growth goes from (-) 32.47% to 23.18%. The trailing twelve-month (ttm) gross profit is $46.05 Billion. 

2023 has been a year of mixed performance for NASDAQ: PEP Stock. It fell 0.05% in a week, 2.25% in three months, and 1.48% YTD, and also gained 5.10% in a month, 2.84% in six months, and 2.36% in a year.  

PepsiCo Inc. (NASDAQ: PEP) – Technical Analysis

NASDAQ: PEP, at press time, is trading at $177.92, falling 1.05%; previous close and open were at $179.82 and $179.34, respectively. The 52-week range is from $160.98 to $196.88, suggesting a closer proximity with the upper end of the spectrum. With a volume of 5.57 Million shares, the market cap is $244.921 Billion. 

The (ttm) price-to-earnings (P/E) ratio is 31.21, suggesting a fairly valued stock price. At the same time, the (ttm) earnings per share (EPS) is $5.70, suggesting financial strength. Analysts placed a price target at $192.00 with a 7.9% upside and provided a 2.25 rating for HOLD. 

PepsiCo released Q2 earnings on July 13, 2023, where the reported earnings of $2.09 per share surpassed the expected value of $1.963 per share by 6.48%. In comparison, the reported revenue of $22.322 Billion also beat the estimated value of $21.729 Billion by 2.73%. Despite these positive earnings, PEP stock fell 2.65%. 

Compared to the previous quarter, revenue gained is 10.37% while EPS jumped by 12.37%. The subsequent earnings will be reported on October 3, 2023, where the revenue is expected to be $23.478 Billion, and EPS is estimated at $2.149. The (ttm) revenue is $91.14 Billion, and the year-over-year (YoY) quarterly revenue growth is 10.40%. 

PepsiCo, Inc. (PEP Stock) – Candle Exploration

Since November 2022, PEP stock price has followed an ascending trend line, forming higher highs. However, the recent drop caused the price to cross the trend line, suggesting a further price drop. If the fall continues, it could go to immediate support at $171.76; the candle formation at the time will decide the future course of action. 

However, positive market news could cause the price to cross the trendline again. If so, The price could also beat immediate resistance at $187.21. The price action has to consolidate above immediate resistance for some time to be strong enough to cross the selling zone. However, crossing the $200.00 mark is a long shot. 

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