PepsiCo Inc (NYSE:PEP) stock has a Golden Cross pattern in the making — a bullish technical signal indicating a potential uptrend.
This comes as PepsiCo delivered an earnings beat on April 23, with a 5.92% surprise on EPS and a 0.94% surprise on revenue.
A Golden Cross In The Cards
The Golden Cross pattern that may form soon, coupled with positive earnings and analyst sentiments, indicates a positive outlook for PepsiCo stock.
Chart: Benzinga Pro
The Golden Cross pattern is a bullish technical signal indicating a potential uptrend.
This occurs when the stock's short-term moving average, such as the 50-day moving average (orange line in chart above), crosses above its long-term moving average, like the 200-day moving average (blue line in chart above).
PepsiCo's Pricing Power
Despite challenges, PepsiCo has shown resilience, with its stock up 4.97% year-to-date, driven by strong pricing power and a well-diversified product portfolio.
One of PepsiCo's key strengths is its strong pricing power, which has allowed it to navigate the inflationary environment successfully.
The company's well-diversified product portfolio, which includes popular brands in both snacks and beverages, has also contributed to its resilience.
The snacks category has been a major revenue driver for PepsiCo, and the company has demonstrated the ability to pass on higher costs to consumers. This has helped maintain its margins despite the challenges posed by rising input costs.
While PepsiCo's stock is currently trading at a premium, its robust dividends provide some downside protection for investors. The company has a forward dividend yield of 3.04%, making it an attractive option for income investors.
PepsiCo Analysts Are Bullish
Analysts remain bullish on PepsiCo, with BofA Securities reiterating a Buy rating and a $210 price target. Goldman Sachs also maintains a Buy rating with a $200 price target, citing stronger-than-expected top-line growth and sequential volume improvement.
Consensus analysts rating stands at a Buy with a price target of $156.67. However, the recent three analyst reviews on PepsiCo stock received post Q1 earnings from Barclays, JPMorgan, and Wedbush, have an average price target of $187, implying a 4.80% upside for PepsiCo stock.
Investors should monitor the stock's performance closely, especially given its recent rally and the broader market conditions.
Related: What Analysts Are Saying About PepsiCo's Q1 Earnings?
PEP Price Action: PepsiCo stock was trading at $178.50 at the time of publication.
Image: Unsplash