The Case for and Against PepsiCo, Inc. (PEP)

PepsiCo, Inc. (PEP) is an interesting player in the Consumer Goods space, with a focus on Beverages – Soft Drinks. The stock has been active on the tape, currently trading at $109.92, up from yesterday’s close by 0.60%. Given the stock’s recent action, it seemed like a good time to take a closer look at the company’s recent data.

Fundamental Analysis

PepsiCo, Inc. (PEP) currently trades with a market capitalization of $155.98 Billion. That value represents a market adjusting for revenues that have been growing by 0.06 % on a quarterly year/year basis as of the company’s last quarterly report.

You can get a sense of how sustainable that is by a levered free cash flow of $7.03 Billion over the past twelve months. Generally speaking, earnings are expected to grow in coming quarters. Analysts are forecasting earnings of $0.93 on a per share basis this quarter. Perhaps, that suggests something about why 0.41% of the outstanding share supply is held by institutional investors.

Technical Analysis

It’s important to check the technicals to get a sense of how PEP has been acting. Looking at the stock’s movement on the chart, PepsiCo, Inc. recorded a 52-week high of $122.51. It is now trading 12.59% off that level. The stock is trading $110.28 its 50-day moving average by 0.36%. The stock carved out a 52-week low down at $105.94.

In recent action, PepsiCo, Inc. (PEP) has made a move of -1.54% over the past month, which has come on Strong relative transaction volume. Over the trailing year, the stock is underperforming the S&P 500 by 13.41, and it’s gotten there by action that has been less volatile on a day-to-day basis than most other stocks on the exchange. In terms of the mechanics underlying that movement, traders will want to note that the stock is trading on a float of 0.46% with $1.42 Billion sitting short, betting on future declines. That suggests something of the likelihood of a short squeeze in shares of PEP.

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