PepsiCo, Inc. is a global beverage and convenient food company and segments include Frito-Lay North America (food businesses in the U.S. and Canada), Quaker Foods North America (cereals, rice, pasta, and other branded foods in the U.S. and Canada), PepsiCo Beverages North America (beverage businesses in the U.S. and Canada), Latin America (beverage and convenient food businesses), Europe (beverage and convenient food businesses), Africa, Middle East, and South Asia (AMESA) (beverage and convenient food businesses), and Asia Pacific, Australia, New Zealand, and China Region (APAC) (beverage and convenient food businesses). Its well-known brands include Lay's, Doritos, and Cheetos.
When researching a stock like PepsiCo, many investors are the most familiar with Fundamental Analysis — looking at a company's balance sheet, earnings, revenues, and what's happening in that company's underlying business. Investors who use Fundamental Analysis to identify good stocks to buy or sell can also benefit from PEP Technical Analysis to help find a good entry or exit point. Technical Analysis is blind to the fundamentals and looks only at the trading data for PEP stock — the real life supply and demand for the stock over time — and examines that data in different ways. One of these ways is called the Relative Strength Index, or RSI. This popular indicator, originally developed in the 1970's by J. Welles Wilder, looks at a 14-day moving average of a stock's gains on its up days, versus its losses on its down days. The resulting PEP RSI is a value that measures momentum, oscillating between "oversold" and "overbought" on a scale of zero to 100. A reading below 30 is viewed to be oversold, which a bullish investor could look to as a sign that the selling is in the process of exhausting itself, and look for entry point opportunities. A reading above 70 is viewed to be overbought, which could indicate that a rally in progress is starting to get crowded with buyers. If the rally has been a long one, that could be a sign that a pullback is overdue. |
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