Is Pepsico (NASDAQ:PEP) about to rebound?


USD 184.11  0.97  0.52%   

While some of us are excited about consumer defensive space, it makes sense to recap Pepsico in greater detail to make a better perception of its potential. As expected, Pepsico is starting to reaffirm its true potential as insiders are becoming more and more confident in the future outlook. The returns on the market and returns on Pepsico appear somewhat reactive to each other for the last few months. Healthy technical and fundamental indicators of the firm may also hint at signals of long period gains for Pepsico insiders. Pepsico is scheduled to announce its earnings today. The stock is currently in above-average trading activities.
Published over three months ago
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The company's average rating is Buy from 11 analysts. Do analysts base this consensus on technical analyses? We know that typical technical analysis utilizes price momentum, patterns, and trends looking at historical prices. It aims to identify signals based on Pepsico market sentiment investors' perception of the future value of Pepsico. Let us look at a few aspects of Pepsico technical analysis.
Using predictive technical analysis, we will analyze different prices and returns patterns and diagnose historical swings to determine the real value of Pepsico. In general, we focus on analyzing Pepsico stock price patterns and their correlations with different microeconomic environment and drivers. We also apply predictive analytics to build Pepsico's daily price indicators and compare them against related drivers such as momentum indicators and various other types of predictive indicators. Using this methodology combined with a more conventional technical analysis and fundamental analysis, we attempt to find the most accurate representation of Pepsico's intrinsic value. In addition to deriving basic predictive indicators for Pepsico, we also check how macroeconomic factors affect Pepsico price patterns. Please read more on our technical analysis page or use our predictive modules below to complement your research.
Sophisticated investors, who have witnessed many market ups and downs, frequently view the market will even out over time. This tendency of Pepsico's price to converge to an average value over time is called mean reversion. However, historically, high market prices usually discourage investors that believe in mean reversion to invest, while low prices are viewed as an opportunity to buy. Please use the tools below to analyze the current value of Pepsico in the context of predictive analytics.
Please note, it is not enough to conduct a financial or market analysis of a single entity such as Pepsico. Your research has to be compared to or analyzed against Pepsico's peers to derive any actionable benefits. When done correctly, Pepsico's competitive analysis will give you plenty of quantitative and qualitative data to validate your investment decisions or develop an entirely new strategy towards taking a position in Pepsico.

How important is Pepsico's Liquidity

Pepsico financial leverage refers to using borrowed capital as a funding source to finance Pepsico ongoing operations. It is usually used to expand the firm's asset base and generate returns on borrowed capital. Pepsico financial leverage is typically calculated by taking the company's all interest-bearing debt and dividing it by total capital. So the higher the debt-to-capital ratio (i.e., financial leverage), the riskier the company. Please check the breakdown between Pepsico's total debt and its cash.

What do experts say?

Stock analysis is a method for investors and traders to make buying and selling decisions. By studying and evaluating past and current data, investors and traders attempt to gain an edge in the markets by making informed decisions.
It is good to see analyst projects for Pepsico, but it might be worth checking our own buy vs. sell analysis

Closer look at Pepsico Downside Variance

Pepsico has current Downside Variance of 2.99. Downside Variance (or DV) is measured by target semi-variance and is termed downside volatility. It is expressed in percentages and therefore allows for rankings in the same way as variance. One way to view downside volatility is the annualized variance of returns below the target.

Downside Variance is the probability-weighted squared below-target returns. The squaring of the below-target returns has the effect of penalizing failures at an exponential rate. This is consistent with observations made on the behavior of individual decision-making under.

Downside Variance 
SUM = Summation notation
RET DEV = Actual returns deviation over selected period
N(ER) = Number of points with returns less than expected return for the period
Let's now compare Pepsico Downside Variance to its closest peers:

Momentum Analysis of Pepsico suggests possible reversal in August

The downside deviation is down to 1.73 as of today.
As of the 12th of July 2022, Pepsico holds the Semi Deviation of 1.64, coefficient of variation of 4927.16, and Risk Adjusted Performance of 0.0292. Compared to fundamental indicators, the technical analysis model allows you to check existing technical drivers of Pepsico, as well as the relationship between them. Put it differently, you can use this information to find out if the company will indeed mirror its model of past market data, or the prices will eventually revert. We were able to analyze and collect data for nineteen technical drivers for Pepsico, which can be compared to its competitors. Please check Pepsico variance, value at risk, as well as the relationship between the Value At Risk and skewness to decide if Pepsico is priced some-what accurately, providing market reflects its current price of 171.88 per share. Given that Pepsico has jensen alpha of 0.1426, we recommend you to check out Pepsico's recent market performance to make sure the company can sustain itself at a future point.

Our Conclusion on Pepsico

Although many of the other players under the beverages—non-alcoholic industry are still a bit expensive, Pepsico may offer a potential longer-term growth to insiders. With an optimistic outlook on your 90 days horizon, it may be a good time to pick up new shares of Pepsico or increase your existing holdings in the Stock as it seems the potential growth has not yet been fully factored into the current price. Please use our equity advice module to run different scenarios to ensure your current risk level and investment horizon are fully reflective of your current investing preferences in regards to Pepsico.

Editorial Staff

This story should be regarded as informational only and should not be considered a solicitation to sell or buy any financial products. Macroaxis does not express any opinion as to the present or future value of any investments referred to in this post. This post may not be reproduced without the consent of Macroaxis LLC. Macroaxis LLC and Gabriel Shpitalnik do not own shares of Pepsico. Please refer to our Terms of Use for any information regarding our disclosure principles.

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