Stock of the day: PepsiCo
09 February 2023
Today, PepsiCo will publish its results for the fourth quarter. Estimates are on the 1.65 EPS and 26.82B in revenue. Interestingly enough, PepsiCo has been beating every single estimate since October 2017, when it slightly missed the revenue. Should we expect that this series will continue and there will be another great reading? Well, every series has to come to an end one day.
PepsiCo is awaiting data inside of a rectangle pattern (yellow), between the 172 USD resistance and 167.5 USD support. A breakout from this rectangle will, technically, show us the way. In addition, we are still in the uptrend and the rectangle is resisting on the long-term up trendline (black). The price breaking this up trendline (in case of a miss in earnings) would be a proper signal to sell.
In conclusion, although there is a possibility that the winning streak of beating estimates may come to an end, the technical analysis suggests that a positive outcome is more likely. The rectangle pattern and the long-term up-trendline provide a clear picture of the current situation, and a break to the upside would indicate a continuation of the positive trend for PepsiCo. Investors should, however, keep a close eye on the results, as a miss in earnings could potentially result in a sell-off and a change in the current trend. The bullish option seems slightly more probable at the moment.