PepsiCo Stock Rebounds from Yearly Low Ahead of Earnings Report

The PepsiCo stock chart indicates:

→ Yesterday, the price dropped below $161, setting a new low for 2024.

→ However, by the end of the trading day, the price rose above $163.3, closing near the day's high.

This bullish intraday behaviour might suggest positive sentiment emerging ahead of today's earnings report.

According to Dow Jones Newswires:

→ PepsiCo's management anticipates organic revenue growth of 4% and an 8% increase in earnings per share in 2024.

→ The consensus among analysts tracked by FactSet is a 3% rise in sales and a 7% increase in earnings.

PepsiCo's stock has fallen by 9% over the past two months. Investors are concerned that demand might suffer due to rising prices from inflation and the growing popularity of weight-loss drugs, which could curb people's cravings for snacks and sugary drinks.

Technical Analysis of the PEP Daily Chart Today Shows:

→ In the long term, the PEP price is in an uptrend (shown in blue).

→ The price decline from the May high (point A) has brought the price to the lower boundary of this channel, suggesting a potential buying opportunity.

→ The RSI indicator at point B (13 June) fell into the oversold zone, and yesterday's price action might be forming a bullish divergence.

Today's earnings report will provide more clarity. If investors see strong sales results, the PEP stock price might receive a bullish boost. In such a case, resistance could be encountered around the $170 level.

According to TipRanks analysts' forecast monitoring, the average target price for PEP stock is $187.40, representing a 14.55% increase from current levels in the next 12 months.