Pepsi (PEP, $143.11) gets rating boost, price target hike from Citi analyst
PepsiCo got a rating upgrade at Citigroup, on wider profit margin expectations.
Citigroup analyst Wendy Nicholson boosted her rating on the beverage giant’s shares to buy from neutral. She also raised her share-price target to Wall Street high $169, from $148. The price target implies a 22% upside potential from Friday's close at $138.44.
According to Nicholson, increasing operating margins could boost Pepsi shares. The stock’s multiple should “expand considerably from current levels,” she noted.
According to Tickeron's AI-powered analysis, Momentum Indicator for PEP turns positive, indicating new upward trend
PEP saw its Momentum Indicator move above the 0 level on September 28, 2020. This is an indication that the stock could be shifting in to a new upward move. Traders may want to consider buying the stock or buying call options. Tickeron's A.I.dvisor looked at 98 similar instances where the indicator turned positive. In 43 of the 98 cases, the stock moved higher in the following days. The odds of a move higher are at 44%.
Current price $143.30 is above $142.96 the highest resistance line found by A.I. Throughout the month of 09/09/20 - 10/09/20, the price experienced a +0.97% Uptrend. During the week of 10/02/20 - 10/09/20, the stock enjoyed a +0.27% Uptrend growth.
Technical Analysis (Indicators)
Bullish Trend Analysis
The Moving Average Convergence Divergence (MACD) for PEP just turned positive on September 29, 2020. Looking at past instances where PEP's MACD turned positive, the stock continued to rise in 19 of 48 cases over the following month. The odds of a continued upward trend are 40%.
PEP moved above its 50-day Moving Average on October 07, 2020 date and that indicates a change from a downward trend to an upward trend.
The 10-day Moving Average for PEP crossed bullishly above the 50-day moving average on October 06, 2020. This indicates that the trend has shifted higher and could be considered a buy signal. In 7 of 17 past instances when the 10-day crossed above the 50-day, the stock continued to move higher over the following month. The odds of a continued upward trend are 41%.
Following a +1.04% 3-day Advance, the price is estimated to grow further. Considering data from situations where PEP advanced for three days, in 120 of 340 cases, the price rose further within the following month. The odds of a continued upward trend are 35%.
The Aroon Indicator entered an Uptrend today. In 119 of 349 cases where PEP Aroon's Indicator entered an Uptrend, the price rose further within the following month. The odds of a continued Uptrend are 34%.
Bearish Trend Analysis
The 10-day RSI Indicator for PEP moved out of overbought territory on September 03, 2020. This could be a bearish sign for the stock. Traders may want to consider selling the stock or buying put options. Tickeron's A.I.dvisor looked at 46 similar instances where the indicator moved out of overbought territory. In 14 of the 46 cases, the stock moved lower in the following days. This puts the odds of a move lower at 30%.
The Stochastic Indicator may be shifting from an upward trend to a downward trend. In 18 of 62 cases where PEP's Stochastic Oscillator exited the overbought zone, the price fell further within the following month. The odds of a continued downward trend are 29%.
Following a 3-day decline, the stock is projected to fall further. Considering past instances where Apple declined for three days, the price rose further in 50 of 62 cases within the following month. The odds of a continued downward trend are 25%.
PEP broke above its upper Bollinger Band on September 02, 2020. This could be a sign that the stock is set to drop as the stock moves back below the upper band and toward the middle band. You may want to consider selling the stock or exploring put options.
Fundamental Analysis (Ratings)
Tickeron has a positive outlook on this ticker and predicts a further increase by more than 4.00% within the next month with a likelihood of 85%. During the last month, the daily ratio of advancing to declining volumes was 1.04 to 1.
The Tickeron SMR rating for this company is 12 (best 1 - 100 worst), indicating very strong sales and a profitable business model. SMR (Sales, Margin, Return on Equity) rating is based on comparative analysis of weighted Sales, Income Margin and Return on Equity values compared against S&P 500 index constituents. The weighted SMR value is a proprietary formula developed by Tickeron and represents an overall profitability measure for a stock.
The Tickeron PE Growth Rating for this company is 22 (best 1 - 100 worst), pointing to outstanding earnings growth. The PE Growth rating is based on a comparative analysis of stock PE ratio increase over the last 12 months compared against S&P 500 index constituents.
The Tickeron Profit vs. Risk Rating rating for this company is 23 (best 1 - 100 worst), indicating low risk on high returns. The average Profit vs. Risk Rating rating for the industry is 65, placing this stock better than average.
The Tickeron Valuation Rating of 33 (best 1 - 100 worst) indicates that the company is slightly undervalued in the industry. This rating compares market capitalization estimated by our proprietary formula with the current market capitalization. This rating is based on the following metrics, as compared to industry averages: P/B Ratio (14.20) is normal, around the industry mean (8.66). P/E Ratio (27.42) is within average values for comparable stocks, (142.74). Projected Growth (PEG Ratio) (0.10) is also within normal values, averaging (1.12). PEP has a moderately high Dividend Yield (2.76) as compared to the industry average of (1.30). P/S Ratio (2.81) is also within normal values, averaging (5.94).
The Tickeron Price Growth Rating for this company is 37 (best 1 - 100 worst), indicating steady price growth. PEP’s price grows at a higher rate over the last 12 months as compared to S&P 500 index constituents.
PEP in upward trend: price may ascend as a result of having broken its lower Bollinger Band on June 30, 2026
PEP may jump back above the lower band and head toward the middle band. Traders may consider buying the stock or exploring call options. In of 42 cases where PEP's price broke its lower Bollinger Band, its price rose further in the following month. The odds of a continued upward trend are .
Technical Analysis (Indicators)
Bullish Trend Analysis
The Stochastic Oscillator shows that the ticker has stayed in the oversold zone for 9 days. The price of this ticker is presumed to bounce back soon, since the longer the ticker stays in the oversold zone, the more promptly an upward trend is expected.
Following a 3-day Advance, the price is estimated to grow further. Considering data from situations where PEP advanced for three days, in of 309 cases, the price rose further within the following month. The odds of a continued upward trend are .
Bearish Trend Analysis
The Momentum Indicator moved below the 0 level on July 16, 2026. You may want to consider selling the stock, shorting the stock, or exploring put options on PEP as a result. In of 86 cases where the Momentum Indicator fell below 0, the stock fell further within the subsequent month. The odds of a continued downward trend are .
The Moving Average Convergence Divergence Histogram (MACD) for PEP turned negative on July 10, 2026. This could be a sign that the stock is set to turn lower in the coming weeks. Traders may want to sell the stock or buy put options. Tickeron's A.I.dvisor looked at 44 similar instances when the indicator turned negative. In of the 44 cases the stock turned lower in the days that followed. This puts the odds of success at .
The 50-day moving average for PEP moved below the 200-day moving average on June 29, 2026. This could be a long-term bearish signal for the stock as the stock shifts to an downward trend.
Following a 3-day decline, the stock is projected to fall further. Considering past instances where PEP declined for three days, the price rose further in of 62 cases within the following month. The odds of a continued downward trend are .
The Aroon Indicator for PEP entered a downward trend on July 01, 2026. This could indicate a strong downward move is ahead for the stock. Traders may want to consider selling the stock or buying put options.
Fundamental Analysis (Ratings)
The Tickeron Valuation Rating of (best 1 - 100 worst) indicates that the company is slightly undervalued in the industry. This rating compares market capitalization estimated by our proprietary formula with the current market capitalization. This rating is based on the following metrics, as compared to industry averages: P/B Ratio (8.439) is normal, around the industry mean (7.292). P/E Ratio (17.908) is within average values for comparable stocks, (42.541). Projected Growth (PEG Ratio) (1.480) is also within normal values, averaging (4.979). PEP has a moderately high Dividend Yield (0.042) as compared to the industry average of (0.027). P/S Ratio (1.933) is also within normal values, averaging (3.182).
The Tickeron SMR rating for this company is (best 1 - 100 worst), indicating very strong sales and a profitable business model. SMR (Sales, Margin, Return on Equity) rating is based on comparative analysis of weighted Sales, Income Margin and Return on Equity values compared against S&P 500 index constituents. The weighted SMR value is a proprietary formula developed by Tickeron and represents an overall profitability measure for a stock.
The Tickeron Seasonality Score of (best 1 - 100 worst) indicates that the company is fair valued in the industry. The Tickeron Seasonality score describes the variance of predictable price changes around the same period every calendar year. These changes can be tied to a specific month, quarter, holiday or vacation period, as well as a meteorological or growing season.
The Tickeron Price Growth Rating for this company is (best 1 - 100 worst), indicating fairly steady price growth. PEP’s price grows at a lower rate over the last 12 months as compared to S&P 500 index constituents.
The Tickeron PE Growth Rating for this company is (best 1 - 100 worst), pointing to worse than average earnings growth. The PE Growth rating is based on a comparative analysis of stock PE ratio increase over the last 12 months compared against S&P 500 index constituents.
The Tickeron Profit vs. Risk Rating rating for this company is (best 1 - 100 worst), indicating that the returns do not compensate for the risks. PEP’s unstable profits reported over time resulted in significant Drawdowns within these last five years. A stable profit reduces stock drawdown and volatility. The average Profit vs. Risk Rating rating for the industry is 72, placing this stock worse than average.
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General Information
a provider of a diversified line of soft drinks and snack foods
Industry BeveragesNonAlcoholic
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