PepsiCo, Inc. (PEP) Stock: Announced Its Positive Q3-2023 Report

• PepsiCo’s Q3-2023 results smashed estimates.
• PEP stock slid about 10.28% over the past month.
• PEP stock closed at $160 with a gain of 1.21% in the past intraday session.

PepsiCo Inc. (NASDAQ: PEP) stock has been witnessing a bold bearish sentiment since late-July, 2023. The consumer staples sector declined by 9.1% in terms of the year-to-date return. It is the S&P 500’s worst-performing sector in 2023. This shattered many commodities’ share prices including that of PepsiCo. Hence, this encouraged the sellers and the PEP stock price faced a strong sell-off. 

Huge participation of buyers was observed before the release of the 3rd quarter report, rising from the support of $155.83 during the rally. The price surged roughly 6% within three days. The bulls attempted to recover the previous losses. However, the move was halted at the $165.44 resistance level, due to bearish dominance in the market. 

PEP stock is currently trading at $160.00 while witnessing a gain of 1.21% in the pre-market trading. The prolonged downtrend diluted the market capitalization from $270 Billion to $220 Billion. The year-to-date return of PEP stock reflects a negative result of 11.40%. PepsiCo’s yearly performance inflated the bearish sentiment in the market. 

Despite the competition and staggering macroeconomics, PepsiCo has been gradually increasing its revenue and earnings. The company also swiftly resumed growth despite the global economic slowdown caused by the pandemic. Hence, the revenue and earnings grew by 13% and 7%, respectively, in 2021, when compared to 2020. 

Q3-2023 Report Of PepsiCo Inc. 

PepsiCo Inc. announced its third-quarter financial report on October 10, 2023. The Q3 results depict the earnings per share to be $2.25, surpassing the estimated $2.15 EPS. Meanwhile, PepsiCo’s revenue reported for the third quarter was 23.45, with a surprise of 0.17%. The reported results provided the required thrust to the price. Hence, it spiked by about 2.3% on October 10. 

Will PEP Stock Bounce Back Towards the $165.30 Mark?

PepsiCo’s (PEP) stock price chart displayed the death cross pattern on September 21, 2023. The 50-day EMA crossed below its 200-day EMA, indicating bearish dominance, which caused the downtrend momentum. 

The RSI stands at 31.14, suggesting a rise in the participation of sellers in the market. The PEP stock price was up from the oversold region. However, if PepsiCo attracts more buyers, the price might surge towards the $165.30 mark.

The CMF has been hovering near the 0.00 mark, with a score of 0.01. This denotes neither weakness nor strength in the market, and the price might consolidate in the upcoming sessions. 

Conclusion

PepsiCo’s market structure and price action reflected a rise in the bullish sentiment during the release of the Q3-2023 report. However, the PEP stock price recently experienced a sharp decline, retesting the previous $157 support level.

Traders seeking a buying opportunity should wait for a bearish candle followed by a strong rally. Currently, technical indicators are leaning towards sellers, with a death cross pattern evident.

Technical Levels 

Major resistance: $192.38 and $196.88

Major support: $157.95 and $155.83

Disclaimer

The views and opinions stated by the author, or any people named in this article, are for informational purposes only. They do not establish financial, investment, or other advice. Investing in or trading crypto assets comes with a risk of financial loss.