Pepsico (PEP) Offering Possible 24.69% Return Over the Next 16 Calendar Days

Pepsico's most recent trend suggests a bullish bias. One trading opportunity on Pepsico is a Bull Put Spread using a strike $121.00 short put and a strike $116.00 long put offers a potential 24.69% return on risk over the next 16 calendar days. Maximum profit would be generated if the Bull Put Spread were to expire worthless, which would occur if the stock were above $121.00 by expiration. The full premium credit of $0.99 would be kept by the premium seller. The risk of $4.01 would be incurred if the stock dropped below the $116.00 long put strike price.

The 5-day moving average is moving up which suggests that the short-term momentum for Pepsico is bullish and the probability of a rise in share price is higher if the stock starts trending.

The 20-day moving average is moving up which suggests that the medium-term momentum for Pepsico is bullish.

The RSI indicator is above 80 which suggests that the stock is in overbought territory.

To learn how to execute such a strategy while accounting for risk and reward in the context of smart portfolio management, and see how to trade live with a successful professional trader, view more here

---

LATEST NEWS for Pepsico

Dubai fears the end of its ‘build it and they will come’ model
Mon, 01 Apr 2019 04:00:31 +0000
The shimmering Palace Residences apartment blocks will look out through palm trees, across calm creek waters lapping in from the Gulf towards what developers boast will be the world’s tallest structure. …

How Coca-Cola and PepsiCo Are Positioned in 2019
Fri, 29 Mar 2019 19:12:42 +0000
How Coca-Cola and PepsiCo Are Positioned in 2019Year-to-date total returns Beverage giant Coca-Cola (KO) has delivered a total shareholder return of -0.78% year-to-date as of March 28, in contrast to closest rival PepsiCo (PEP), which generated a

The Sweet Dividend Alone Makes KO Stock Worth Another Look
Fri, 29 Mar 2019 13:16:32 +0000
During the first quarter of 2019, Coca-Cola's (NYSE:KO) stock price has lagged many other stocks. Year-to-date, despite the impressive market rally in the broader market, Coca-Cola stock is down 1.5%.Source: Coca-ColaIn comparison, the return on S&P 500 with the dividends reinvested would be almost 13%. Although its stock has not rewarded shareholders so far this year, I believe that the Coca-Cola belongs to a well-diversified portfolio.Here is why:InvestorPlace – Stock Market News, Stock Advice & Trading Tips Coca Cola and MillennialsCoca-Cola is the world's largest beverage company with 20 different brands that generate more than $31 billion dollars in annual revenues. Over the decades, many investors have regarded it as a reliable investment.For example, Coca-Cola stock tops the list of longtime favorite holdings of Warren Buffett. The Oracle of Omaha's Berkshire Hathaway (NYSE:BRK.A, NYSE:BRK.B) owns 400,000,000 shares of Coca-Cola, worth over $18 billion. In the last quarter of 2018 when many stocks suffered sizable losses, KO was the only green stock among the top 10 holdings of Berkshire Hathaway. * 10 Tech Stocks That Transformed Their Business However, most of this decade, KO has seen declining revenues, partly because of the drop in soda sales as the U.S. consumer has moved towards healthier beverages including flavored water.Therefore, management has been transitioning the company to offer a beverage portfolio that seizes on the public's increased appetite for flavored drinks, including colas. For example, in 2016, the company announced its "One Brand Strategy" and introduced a common visual identity and creative campaign for all the brands.Later in 2017, it relaunched Coke Zero. This year, it introduced a U.S. wide ad campaign for its new flavor, Orange Vanilla Coke to coincide with March Madness. As a result of the changes in the product offerings, now cherry and vanilla flavored Cokes account for about 9% of the dollar volume but bring in 18% of the dollar growth.Earlier this year, the group completed the acquisition of Costa Coffee in the U.K. Wall Street believes that the purchase of the biggest coffee chain in the U.K. could lead to increased diversification away from soda drinks as well as revenues, especially prompted by growth in the Chinese market, where Costa Coffee currently has almost 500 stores.Offering hot beverages for the first time is yet another strategic step for the group as it addresses the shift in consumer taste and purchasing behavior.As you are deciding what may be next for KO stock fundamentally, you may also want to think about whether the global economy or the U.S. may be headed for a slowdown or even a recession.During periods of market volatility or economic downturn, consumer staples tend to be among the last products that consumers remove from their household budgets. In other words, defensive stocks like KO may help your portfolio when the going gets tough in the markets.On the flip side of the coin, despite the recent decline in the stock price, Coca-Cola shares still seem expensive when compared to the five year trading history. In mid-March, the stock also was downgraded from $64 to $50. Therefore, some analysts urge investors to consider KO stock's peers, such as PepsiCo (NYSE:PEP).Nonetheless, over the past decade, the returns of both stocks would have been very similar; in fact KO investors would have been slightly better off than PEP shareholders. Reinvesting the KO Stock DividendIncome investors know that they can compound their returns through reinvesting dividends from high-yielding shares. Despite the question marks regarding future growth at Coca-Cola, its dividends make the shares rather attractive. In February, the company increased its dividend and declared a new share buyback program.The current dividend yield stands at 3.5% – another reason why I believe KO stock belongs to a capital-growth portfolio. The next dividend payment is scheduled for Apr. 1, 2019 to shareholders of record on Mar. 15. KO Stock in the Short TermFollowing the sell-off on Feb. 14, Coca-Cola stock has been range trading between $44.5 and $46.5. This band is likely to act as a strong support zone for the stock where it can form a base to make a new sustained leg up.Those investors who pay attention to moving averages and oscillators should note that the short-term technical message is giving "neutral-to-buy" readings.I would not advocate bottom-picking in case of near-term price weakness. Yet, I find KO stock to be a compelling buy candidate and I'd regard any potential dip in the price as an opportunity to grab the shares for the long term. Within a year, I'd expect the shares to trade slightly over $50.If you are an experienced investor in the options market, you may also consider using a covered call strategy with approximately a three-month time horizon. In that case, you may, for example, buy 100 shares of Coca-Cola at a limit price of $46.61 (the closing price on Mar. 27) and, at the same time, sell a KO June 21 2019 $47 call option, which currently trades at $1.15.The $47 option is slightly out-of-the-money, offering some downside protection in case of volatility and a decline in KO stock. This call option would stop trading on Jun. 21, 2019 and expire on Jun. 22. The Bottom Line on Coca-Cola StockAfter considering the pros and the cons for the stock, if you are also of the opinion that the management will be able to strengthen the story of Coca-Cola, the iconic beverage company, and its balance sheet and that the stock is ready for a rebound on either technical and fundamental grounds, you may want to add KO shares to your portfolio in the second quarter of 2019.In 3-4 years, patient value and dividend growth investors are likely to be rewarded handsomely.In case you do not want to own Coca-Cola stock by itself, but would rather invest on a sectoral basis, you may also consider an exchange traded fund (ETF) that holds KO, such as the Consumer Staples Select Sector SPDR (NYSEARCA:XLP) or the Invesco Dynamic Food & Beverage ETF (NYSEARCA:PBJ). Or you could even consider investing in Coca-Cola indirectly by owning shares of Berkshire Hathaway.As of this writing, Tezcan Gecgil did not hold a position in any of the aforementioned securities. More From InvestorPlace * 2 Toxic Pot Stocks You Should Avoid * 8 Genomic Testing Stocks That Can Ease the Sting of Theranos * 4 Pot Stocks That Could Be Fizzling Out * 7 Mid-Cap Growth Stocks That Could Be the Next Amazon or Netflix Compare Brokers The post The Sweet Dividend Alone Makes KO Stock Worth Another Look appeared first on InvestorPlace.

PepsiCo Announces Senior Leadership Appointment at PepsiCo Foods North America
Fri, 29 Mar 2019 12:30:00 +0000
PURCHASE, N.Y., March 29, 2019 /PRNewswire/ — PepsiCo, Inc. (NASDAQ: PEP) today announced that Steven Williams, currently senior vice president and chief commercial officer for Frito-Lay's U.S. operations, has been appointed to the role of chief executive officer of PepsiCo Foods North America (PFNA), which includes Frito-Lay North America (FLNA) and Quaker Foods North America (QFNA), effective immediately.  Williams replaces Vivek Sankaran who will depart the company on April 12, 2019 to become president and chief executive officer of Albertsons Companies, Inc.

See what the IHS Markit Score report has to say about PepsiCo Inc.
Thu, 28 Mar 2019 12:00:31 +0000
PepsiCo Inc NASDAQ/NGS:PEPView full report here! Summary * Perception of the company's creditworthiness is negative * Bearish sentiment is low * Economic output in this company's sector is expanding Bearish sentimentShort interest | PositiveShort interest is extremely low for PEP with fewer than 1% of shares on loan. This could indicate that investors who seek to profit from falling equity prices are not currently targeting PEP. Money flowETF/Index ownership | NeutralETF activity is neutral. ETFs that hold PEP had net inflows of $18.13 billion over the last one-month. While these are not among the highest inflows of the last year, the rate of inflow is increasing. Economic sentimentPMI by IHS Markit | PositiveAccording to the latest IHS Markit Purchasing Managers' Index (PMI) data, output in the Consumer Goods sector is rising. The rate of growth is strong relative to the trend shown over the past year. Credit worthinessCredit default swap | NegativeThe current level displays a negative indicator. PEP credit default swap spreads are at their highest levels for the past 1 year, which indicates the market's more negative perception of the company's credit worthiness.Please send all inquiries related to the report to score@ihsmarkit.com.Charts and report PDFs will only be available for 30 days after publishing.This document has been produced for information purposes only and is not to be relied upon or as construed as investment advice. To the fullest extent permitted by law, IHS Markit disclaims any responsibility or liability, whether in contract, tort (including, without limitation, negligence), equity or otherwise, for any loss or damage arising from any reliance on or the use of this material in any way. Please view the full legal disclaimer and methodology information on pages 2-3 of the full report.

Related Posts