PepsiCo Inc. PEP is shaking up the stock market with a recent emergence of a bullish technical pattern known as a Golden Cross.
Golden Cross Signals Bullish Momentum: This occurs when the stock’s 50-day moving average surpasses its 200-day moving average, indicating potential upward momentum.
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Pepsi’s stock currently trades 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 classic bullish indicator.
While PepsiCo’s stock performance has lagged behind the broader S&P 500, with a 2.77% rise over the past year and a 3.51% year-to-date gain compared to the S&P 500’s 15.9% YTD climb, the Golden Cross suggests potential for a stronger rally ahead. The stock also stands 3.2% below its 52-week high of $183.41 from May, presenting investors with a promising entry point.
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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 symbolizes a potential shift in sentiment.
Investors eyeing a position in a dependable “Dividend King” like PepsiCo should pay heed to the stock’s technical fortitude.
With a market cap of $245.16 billion and a portfolio boasting globally recognized brands such as Pepsi, Lay’s, and Gatorade, PepsiCo offers stability amidst market turmoil, accompanied by a robust 3.04% dividend yield that has grown for 52 consecutive years.
In today’s uncertain economic climate, PepsiCo’s dividend track record renders it especially appealing to long-term investors.
Though competitor Coca-Cola Co KO has outperformed PepsiCo year-to-date, PepsiCo’s recent bullish signals suggest it warrants close monitoring.
Positioned in correction territory with technical indicators pointing to bullish momentum, now appears to be an opportune moment to take notice of this industry leader.
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