Buy Pepsico For Its Better Earnings and NASDAQ100 Rebalance
$Pepsi(PEP)$ released their earnings yesterday and their weightage in NASDAQ100 will also increase from 1.70% to 2.13% (an increase of 0.43%).
Pepsi have posted EPS of $1.99, which is better than forecast of $1.96. I have written an earlier article on how I analyze PEP earnings.
PepsiCo’s (PEP) Earnings (13 Jul Premarket) Analysis
Pepsi(PEP) will benefit from the NASDAQ100 rebalance and with a strong Q2 earnings, I believe PEP would be able to give us some substantial returns.
PEP has raises their full-year guidance. Now let us look at how the technical analysis would show us when would be a good time to buy.
PEP is on a nice uptrend after earnings on 13 Jul 23
PEP has a very nice uptrend after its earnings on 13 Jul 23, based on its past earnings, it will still have potential of an uptrend on the second day after its earnings.
Considering that its weightage on NASDAQ 100 will be increased by 0.43%. I believe there is potential.
Technical Analysis - Relative Strength Index (RSI) on PEP
PEP has been gaining momentum before its earnings and I believe this momentum will continue based on the RSI.
It is neither overbought or oversold. This would be a good time to plan for an entry.
Technical Analysis - Parabolic SAR on PEP
SAR is giving us a LONG signal and it look like there is a bullish reversal and it is starting to move bullish upwards.
This give me the confidence to plan for an entry price into PEP.
Summary
I think this might be a good time to consider buying into PEP as we have seen a LONG signal from SAR which normally suggest a BUY.
RSI is gaining momentum, it is neither overbought or oversold. I would plan to enter into PEP.
PEP My Target Price: $186.70 to $186.90. If the premarket price goes below $186.50, then we will need to look at another indicators to determine the BUY and SELL price.
Appreciate if you could share your thoughts in the comment section whether you think it is a good time to buy PEP now?
@TigerStars @Daily_Discussion @TigerWire appreciate if you could feature this article so that fellow tiger would benefit from my investing and trading thoughts.
Disclaimer: The analysis and result presented does not recommend or suggest any investing in the said stock. This is purely for Analysis.)
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Not sure why PEP. Is stuck in this bubble… we should be approaching the $200.
Great buy opportunity. Watch this stock crawl back to $187-$188 next week.
love pep all their products are great, can't go wrong with this one!
PEP is a well-run company and should have good earnings.
Stellar trading day for PEP. Bravo, bravo! 👏