PepsiCo Inc. PEP is making waves in the stock market as its shares recently formed a bullish technical pattern known as a Golden Cross.
Golden Cross Signals Bullish Momentum: This is when the stock’s 50-day moving average crosses above its 200-day moving average, signaling potential upward momentum.
![](https://editorial-assets.benzinga.com/wp-content/uploads/2024/09/05111521/Screenshot-2024-09-05-at-6.37.36-PM.png)
Chart created using Benzinga Pro
Pepsi's stock is trading at $178.52, comfortably above both its 50-day and 200-day simple moving averages of $170.43 and $170.21, respectively, making this a textbook bullish indicator.
After a 2.77% rise over the past year and a 3.51% year-to-date gain, PepsiCo stock's performance has lagged the broader S&P 500, which climbed 15.9% YTD. However, Pepsi’s Golden Cross suggests that it could be gearing up for a stronger rally in the months ahead. The stock also sits 3.2% below its 52-week high of $183.41, which it hit in May, offering investors a potential opportunity to buy at a favorable price.
Read Also: Coca-Cola Hits All Time New High As Nvidia Loses $279B, Jolts And Beige Book Ahead
PepsiCo: A Dividend King's Resilience In Uncertain Times
Despite recent volatility, with PepsiCo trading below its 50-day moving average since mid-July, the Golden Cross shows that the tide may be turning.
Investors looking to build a position in a “Dividend King” like PepsiCo should pay attention to the stock’s technical strength.
PepsiCo has a market cap of $245.16 billion and is renowned for its global brands like Pepsi, Lay’s, and Gatorade. As a mega-cap stock, it offers stability in turbulent markets, along with a solid 3.04% dividend yield that has increased for 52 consecutive years.
In today's uncertain economic environment, that dividend history makes PepsiCo particularly attractive to long-term investors.
While rival Coca-Cola Co KO has outperformed Pepsi on a year-to-date basis, Pepsi's recent bullish signals indicate that it's worth keeping on your radar.
With the stock in correction territory and technical indicators signaling bullish momentum, now looks like a great time to take a sip of this market leader.
Read Next:
Image: Unsplash
© 2024 Benzinga.com. Benzinga does not provide investment advice. All rights reserved.
Comments
Trade confidently with insights and alerts from analyst ratings, free reports and breaking news that affects the stocks you care about.