Reason: Weak on business and setup. Expected Return is the upside to the analyst price target; full rationale is detailed below.
📌 Is PEP a Buy right now?
According to Ultra Stock Analysis Pro, PepsiCo, Inc. (PEP) is currently rated WAIT (Signal Strength: 0/7). The long-term fundamentals are stable (P/E: 18.0, Revenue Growth: +8.5%), while short-term technicals show a bearish trend (RSI: 41). Consider waiting for support confirmation near $147.57 before adding exposure.
For the latest stock analysis and interactive charts:
📊 Open PEP Analysis ↗
PEP carries a WAIT rating because fundamentals are middling (Investment Quality 54/100), the trend is weak and consolidating (ADX 19), relative strength has lagged the S&P 500 over the past quarter and no fresh entry trigger has fired (Signal Strength 0/7). A breakout above $147.57 on improving volume would upgrade the signal toward BUY; a break below $135.97 would mark deeper weakness.
Two independent reads: how good the business is (fundamentals) vs. how good buying it right now is (technicals & timing). A great company is not always a great entry.
PEP: Investment Quality 54/100 vs. Entry Quality 46/100 — weigh business strength against the current setup.
The stock's return minus each benchmark's return. Positive = outperforming = leadership; negative = lagging. Relative strength is one of the most durable signals in quantitative research.
| Benchmark | 1-Mo | 3-Mo | 6-Mo |
|---|---|---|---|
| S&P 500 (SPY) | -6.5% | -23.2% | -7.8% |
| Consumer Defensive (XLP) | -4.5% | -13.4% | -8.9% |
PEP 3-month return: -11.9% · Leadership: LAGGARD — trailing the S&P 500 and its sector
What is driving the view — every factor's signed contribution to one net score. Green adds to the bull case; red detracts.
| Factor | Contribution | Pts |
|---|---|---|
| Earnings Growth +28% YoY | +18 | |
| Profitability Margin 9%, ROE 44% | +16 | |
| Valuation Fwd P/E 15.3, PEG 1.5 | +8 | |
| Revenue Growth +8% YoY | +6 | |
| Sentiment Bullish | +4 | |
| Volatility ATR 2.7% of price | -1 | |
| Trend EMA bearish, ADX 19 | -5 | |
| Momentum RSI 41, MACD bearish | -5 | |
| Relative Strength -18.3% vs benchmarks (3M) | -12 |
Net Factor Score: +29 — Net bullish. This weighs the broad bull/bear case; the entry signal (Signal Strength) governs timing — a strong factor score can still read WAIT until a setup triggers.
A gradient-boosted model's estimated probability that price closes higher over each horizon (directional estimate, not a guarantee).
● Top 25% in sector ● Middle 50% ● Bottom 25% — each value colored by its rank among 10 Beverages - Non-Alcoholic peers; "med" is the peer median.
Why this rating?
The Ultra Stock Analysis algorithm has assigned a WAIT rating to PEP based on a confluence of 3 distinct factors:
📊 Confidence Interval:
Based on 7+ years of historical data, signals with this specific technical fingerprint have resulted in a positive return 60% of the time across 15 historical trades over a medium-term (months) hold period, with an average return of +1.5% per trade.
📊 How the Signal Strength score works (and why it can read low in an uptrend)
Signal Strength is a tactical entry-timing score, not a trend or fundamentals grade. It only adds points from setups that flag a fresh reason to enter — breakouts, momentum divergences, and oversold/volume/volatility extremes. Trend direction and fundamentals are scored in their own sections above. A setup must reach 3+ points to register as a signal and 5+ for a strong BUY. Individual boxes below can be checked — a stacked EMA trend alone is worth 2 points — without crossing the 3-point bar; when that happens the registered Signal Strength stays at 0/7, meaning no new entry trigger today — not a bearish call.
| Signal | Pts | What it flags | Now |
|---|---|---|---|
| Valid Breakout | 3 | Close breaks above the 20-day high on >1.5× volume | ✗ |
| EMA Trend Alignment | 2 | EMA20 > EMA50 > EMA200 (stacked uptrend) | ✗ |
| RSI Bullish Divergence | 2 | Price firms while RSI was falling — a reversal setup | ✗ |
| MACD Bullish Divergence | 2 | Price firms while MACD was falling — a reversal setup | ✗ |
| Strong Trend (ADX > 25) | 1 | ADX > 25 confirming the stacked EMAs | ✗ |
| High Volume (>1.5×) | 1 | Volume surge confirming the move | ✗ |
| RSI Oversold | 1 | RSI < 30 — stretched to the downside (bounce setup) | ✗ |
| Below Lower Bollinger | 1 | Close below the lower band (mean-reversion setup) | ✗ |
| Volume Accumulation | 1 | Up-volume divergence — quiet accumulation | ✗ |
Points met on the latest bar: 0 → registered Signal Strength 0/7. A setup must reach 3+ points to register as a signal (5+ for a strong BUY); below that it reads 0.
This is why PEP can show a bearish EMA trend and solid fundamentals while Signal Strength reads 0/7: those are already-in-trend and value measures, whereas this score fires only on a new tactical setup (an oversold bounce, a divergence, or a high-volume breakout) — none of which is present on the latest bar.
To assist with risk management, here are the three most probable paths for PEP over the next trading week:
🟢 The Bull Case (Probability: 20%)
If PEP reclaims the $147.57 resistance level (Bollinger Upper), algorithmic targets shift to $162.82. This move would likely be driven by continued sector rotation into Consumer Defensive.
🔴 The Bear Case (Probability: 50%)
Failure to hold the $135.97 support zone (Bollinger Lower) triggers a defensive stop-loss signal. In this scenario, the algorithm projects a slide toward the $132.21 liquidity zone (-3.8% from current price).
🟡 The Base Case (Sideways)
Given the current ADX of 19 (weak trend - consolidation likely), the most likely immediate outcome is consolidation between $135.97 and $147.57 until a volume catalyst occurs.
⚠️ These scenarios are algorithm-generated projections based on technical analysis, not financial advice. Past performance does not guarantee future results.
| TECHNICAL METRICS | VALUE | FUNDAMENTAL METRICS | VALUE |
|---|---|---|---|
| Current Price | $137.38 | Market Cap | $187.7B |
| Past Win Rate (Backtest) | 60.0% (15 trades) | Forward P/E | 15.3x |
| Past Total Return | +11.2% | Analyst Target | $162.82 |
| RSI / Trend Strength | 41 / 19 | Upside to Target | +18.5% |
| MACD Signal | Bearish | Revenue Growth | +8.5% |
| Profit Factor | 1.39 | Institutional Own. | 81.0% |
| Position Entry | 2025-07-16 @ $130.20 | Analyst Ratings | 8 Buy / 14 Hold / 1 Sell |
| Open Position Past P&L | +5.5% |
MAINTAIN POSITION - Current position showing 5.5% unrealized gain. Use intelligent stop loss strategy below.
Both strategies analyzed independently. Conservative uses fixed 2.0x ATR stops. Adaptive adjusts stops based on position profit (tighter as profit grows).
Fixed 2.0x ATR Stop Loss
Entry: $130.20 on 2025-07-16
Confluence: nan
Stop Loss: $129.86
Backtest Results (Since 2018):
Past Win Rate
60%
Past Total Return
+11.2%
Max Drawdown
-12.7%
Avg Trade
+1.5%
Trades
15
Adaptive ATR Stop Loss (1.0-2.75x)
Waiting for entry signal...
Entry Stop: $131.74 ({atr_multiplier}x ATR)
Backtest Results (Since 2018):
Past Win Rate
63%
Past Total Return
+18.8%
Max Drawdown
-10.7%
Avg Trade
+1.7%
Trades
19
Current Price
$137.38
Buy Stop Loss
$129.86
Distance: 5%
Conservative 2.0x
Position Stop Loss
$130.80
Distance: 5%
Hybrid 1.75x
ATR 14 Day
$3.76
Volatility
ADX Strength
19.2
Weak/No Trend
Position up +6% - Adaptive strategy adjusts for momentum
ADX: 20-25 = Emerging trend | 25-50 = Strong trend | 50+ = Very strong
Recent upgrades, downgrades, and price target changes (last 90 days)
| Firm | Action | From → To | Date |
|---|---|---|---|
| Citigroup | DOWNGRADE | Buy → Neutral | Jul 10, 2026 |
| Bernstein | INITIATED | Market Perform | Jun 12, 2026 |
| Bernstein | INITIATED | Market Perform | Jun 11, 2026 |
| Average Target: | $162.82 | High Target: | $183.00 |
| Current Price: | $137.38 | Low Target: | $132.00 |
| Upside to Average: | +18.5% | Number of Analysts: | 22 |
Based on backtest performance (Win Rate: 60.0% over 15 trades, Avg Return: +1.5%) and analyst consensus (Target: $162.82, +18.5% upside), an OVERWEIGHT exposure may be considered. Risk/Reward ratio of 3.38:1 (reward to analyst target vs. distance to the stop) suggests favorable risk-adjusted returns. Current open position shows +5.5% unrealized gain.
PepsiCo, Inc. operates in the Consumer Defensive sector (Beverages - Non-Alcoholic). Current valuation of 15.3x forward P/E reflects reasonable multiples relative to growth prospects. Operating margin of 17.0% shows strong profitability.
Fundamental Outlook: Moderate Growth - Monitoring profitability amid revenue expansion
Overall Score: 4.2/10 - Bullish
PepsiCo has now raised its dividend for more consecutive years than most investors have been alive, and the streak is drawing serious attention from i...
PepsiCo’s fair value estimate has been trimmed from US$168.27 to US$164.86, a reduction of about 2.0% that reflects more cautious assumptions in the l...
“We do expect some more pressure on the business from a commodity standpoint,” CFO Steve Schmitt said on an earnings call....
The news sentiment is strongly bullish, indicating positive market perception and favorable coverage. This suggests growing investor confidence and potential upward momentum. Consider this as a supporting factor for bullish positions, but verify with technical and fundamental analysis.
Comprehensive Technical Data for Quantitative Analysis
| Indicator | Value | Indicator | Value |
|---|---|---|---|
| Close Price | $137.38 | Volume | 9.1M |
| Beta | 0.37 | Avg Volume | 8.2M |
| EMA 20 | $141.61 | EMA 50 | $144.61 |
| EMA 200 | $146.74 | Current Price | $137.38 |
| RSI (14) | 40.83 | MACD | -1.337 |
| MACD Signal | -1.324 | MACD Histogram | -0.013 |
| Trend Strength (ADX) | 19.18 | Volatility (ATR 14) | $3.76 |
| Bollinger Upper | $147.57 | Bollinger Lower | $135.97 |
| Stochastic %K | 31.51 | Stochastic %D | 48.02 |
| VWAP | $136.88 | Bollinger Middle | $141.77 |
| Confluence Score | 0/7 | Trade Signal | NONE |
Comprehensive Fundamental Data for Financial Analysis
| Valuation Metrics | Performance | ||
|---|---|---|---|
| Market Cap | $187.7B | Revenue | $95.4B |
| Forward P/E | 15.3 | Revenue Growth | +8.5% |
| Trailing P/E | 18.0 | Gross Margin | 54.4% |
| Price/Sales | 1.97 | Operating Margin | 17.0% |
| Price/Book | 8.79 | Profit Margin | 9.1% |
| PEG Ratio | 1.53 | ROE | 43.9% |
| Enterprise Value | $230.5B | Free Cash Flow | $8.7B |
| EPS (Forward) | $8.99 | Dividend Yield | 4.15% |
| 52-Week Range | $133.75 - $171.48 | ||
Comprehensive Trading Performance and Position Details
| Entry Date | Entry Price | Past P&L | Entry Stop Loss |
|---|---|---|---|
| 2025-07-16 | $130.20 | +5.52% | $125.93 |
| Entry Date | Exit Date | Entry Price | Exit Price | Return % | Result |
|---|---|---|---|---|---|
| 2021-10-07 | 2022-02-23 | $134.40 | $144.22 | +7.31% | Win |
| 2022-04-05 | 2022-04-28 | $147.62 | $154.59 | +4.72% | Win |
| 2022-10-21 | 2023-05-15 | $152.79 | $173.75 | +13.72% | Win |
| 2023-05-30 | 2023-06-13 | $162.43 | $163.50 | +0.66% | Win |
| 2023-06-16 | 2023-08-15 | $167.55 | $163.33 | -2.52% | Loss |
| 2024-03-21 | 2024-06-11 | $158.80 | $153.20 | -3.52% | Loss |
| 2024-07-11 | 2024-10-03 | $152.16 | $157.60 | +3.58% | Win |
| 2024-10-14 | 2024-10-31 | $164.68 | $155.31 | -5.69% | Loss |
| 2025-01-10 | 2025-03-19 | $134.53 | $140.92 | +4.75% | Win |
| 2025-04-09 | 2025-04-29 | $138.53 | $127.79 | -7.75% | Loss |
Summary: 15 total trades | Strategy: Conservative Stop Loss (Fixed ATR-based)
Disclaimer: This report is for informational and educational purposes only and does not constitute investment advice. Ultra Stock Analysis Pro is not a registered investment advisor; information is impersonal and not tailored to individual circumstances. AI-generated content may contain errors — verify before acting. Past performance is not indicative of future results. Technical analysis based on historical data through 2026-07-10. Fundamental data auto-fetched from Yahoo Finance. Please conduct your own due diligence before making investment decisions.
Report Generated: July 11, 2026 at 03:42 PM
Ultra Stock Analysis Pro - Comprehensive Technical & Fundamental Analysis