Pepsico, Inc. stock trades under the ticker PEP & has shown recent bearishness that traders & investors should take a closer look at.
PEP stock closed at $168.26/share on 7/20/2020.
Pepsico, Inc. PEP Stock’s Technical Performance Broken Down
PEP Stock Price: $168.26
10 Day Moving Average: $170.10
50 Day Moving Average: $166.46
200 Day Moving Average: $165.05
RSI: 51.22
MACD: 1.286
Yesterday, PEP stock completed a bearish MACD crossover, on below average volume compared to the year prior.
This signals that there is not strong sentiment , but that the stock should incur more near-term losses, which will enable traders & investors to get a better price/share.
Their RSI is neutral & they look set to test their $167.70 & $167.62 support levels, with the $168.67/share level being the next level of resistance on their march higher.
Pepsico, Inc. PEP Stock As A Long-Term Investment
Long-term oriented investors will like PEP stock’s P/E (ttm) of 25.61, but will find their 12.65 P/B (mrq) to be too high.
They recently reported 5.2% Quarterly Revenue Growth Y-o-Y, although -39.4% Quarterly Earnings Growth Y-0-Y.
Their balance sheet will require a closer examination though, with $5.69B of Total Cash (mrq) & $39.28B of Total Debt (mrq).
PEP stock pays a 2.57% dividend yield, which may not be sustainable in the long-run, as their payout ratio is 65.9%.
73.9% of PEP stock’s outstanding share float is owned by institutional investors.
Pepsico, Inc. PEP Stock As A Short-Term Trade Using Options
Short-term oriented traders can use options to profit from price movements in PEP stock, while also hedging against market volatility.
I am looking at the contracts with the 8/19 expiration date.
The $165, $157.50 & $160 call options are all in-the-money, listed from highest to lowest levels of open interest.
The $170, $172.50 & $175 puts are also all in-the-money, with the former two being more liquid than the latter.
Tying It All Together
PEP stock has many interesting characteristics that traders & investors are sure to find appealing.
Investors will like their P/E (ttm) & dividend yield, but may want to review their balance sheet closer to ensure that their dividend will be sustainable in the longer-term.
Traders will like their options’ liquidity, despite their bearish technicals.
Overall, PEP stock is worth researching further into to see how it fits into your portfolio strategy.
*** I DO NOT OWN SHARES OF PEP STOCK AT THE TIME OF PUBLISHING THIS ARTICLE ***