PepsiCo's Golden Opportunity: Soda Giant Lags S&P 500, But Shows Bullish Momentum

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.

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.

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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.

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• PepsiCo Faces Legal Heat: Gatorade Protein Bars Criticized For Excessive Sugar

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