PepsiCo Inc. PEP Stock Stuck In Consolidation After Q3 Report

• PepsiCo plans to roll out 100 Tesla Semis in 2023. 
• PEP stock closed at $162.28, with a hike of 1.67% in the past session.
• The PEP stock price is stuck in a consolidation zone. 

PepsiCo Inc (NASDAQ: PEP). plans to roll out 100 heavy-duty Tesla Semis in this year under the pep+ (PepsiCo Positive) initiative. The introduction of Tesla Semis in Modesto was part of the company’s goal to reach net zero emissions by 2040. A $15.4 Million state grant and $40,000 federal subsidy per vehicle helps to transform the current infrastructure.

PepsiCo Inc. (NASDAQ: PEP) stock price is stuck in a consolidation zone after witnessing a drastic fall of roughly 13%. The S&P 500 consumer staples sector declined by 6.20%  in terms of the year-to-date return. This affected many companies’ share prices, including that of PepsiCo. Hence, it triggered negative sentiment, and the price melted about 13% from the high of $180.80. 

Q3-2023 Report Of PepsiCo Inc.

The food and beverage company announced its astonishing third-quarter financial report on October 10, 2023. The Q3 reported earnings of $2.25 per share beat the Zacks Consensus Estimate of $2.17 EPS, which shows a surprise of 3.69%,  PepsiCo posted revenue of $23.45 Billion for the quarter ended September 2023, surpassing the Zacks Consensus estimate by 0.32%. This was also higher than the previous year’s revenue of $21.97 Billion. After the company revealed the Q3 report, mass participation of buyers was witnessed, which aided a surge of 6% within three days. 

The buyers attempted to recover the prior losses. However, the move was halted, and the price was stuck in consolidation, ranging between $165.44 and $157.43. Currently, the PEP stock price has closed at $162.28, with an increase of 1.67% in the past intraday session.  If the bullish sentiment prevails and the price surges above the $162.28 resistance level, then the price may spike towards the $168.80 resistance level. On the other hand, if bearish sentiment regains strength and the price escapes consolidation, the price might melt and retest the annual low of $155.83. 

Why is the PEP Stock Price Stuck In Consolidation?

The PEP stock price slid below the 20, 50, 100, and 200-day EMAs, which denotes a mass gathering of sellers in the past few months. However, the current consolidation raises the stakes that the price might conquer the short-term moving averages.

The relative strength index (RSI) was hovering near the neutral zone, with a score of 43.91, suggesting slight weakness due to the prolonged downtrend. The chaikin money flow (CMF) score has been gliding through the 0 mark since October 9, 2023. The CMF indicates neither weakness nor strength, and the price might consolidate. 

Conclusion 

Despite market competition and staggering macroeconomics, PepsiCo has managed to increase its revenue and earnings gradually. Meanwhile, the PEP stock price has shifted from a downtrend to a consolidation zone. Hence, the technical parameters also indicate a neutral stance. 

Technical Levels 

• Major resistance: $192.38 and $196.88
• Major support: $167.05 and $155.83

Disclaimer

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