The American manufacturer of grain-based snacks and beverages is the only beverage seller to resist to The Coca-Cola Company. Issued from a merger between Pepsi-Cola and frito-Lay in 1965, the company continued to expend with the acquisition of Tropicana in 1998 and Quaker Oats in 2001. Recently it acquired a Russian food company Wimm-Bill-Dann Foods and became the largest beverages company in Russia.
Financial analysis shows a regular turnover increase with a solid net income which doesnt seems to suffer from the worldwide sluggish economical context. It products are distributed in more than 200 countries and the diversification of the products and brand portfolio give to PepsiCo a strong resistance to economical cycles. Publications for quarter 1 2012 confirmed the objectives for fiscal 2012 and surprised the consensus with net result and EPS about 7% up to their expectations.
Technically we will advise investors to take a look on the security during the next few sessions. In fact the share is testing the USD 66.9 resistance. Moving average 20-days is in support and the resistance crossing will be a strong buying signal.
A target could be fixed at USD 70 long term resistance. A stop loss will avoid deceptions below 20-days moving average at USD 65.9, corresponding also to a pivot point.