PepsiCo (PEP) Stock Surges Over 4% After Strong Earnings — What Could Be Next?

Core Insights - PepsiCo Inc. (PEP) shares increased by over 4% following quarterly results that exceeded market expectations [1] - The company is expected to appoint Steve Schmitt, a senior Walmart executive, as the new Chief Financial Officer next month, which analysts believe could revitalize the company amid sluggish sales growth and a declining stock price [1] Financial Performance - Earnings per share reached $2.29, surpassing forecasts of $2.26 [3] - Revenue was reported at $23.94 billion, slightly above estimates [3] Technical Analysis - The PEP stock chart indicates a persistent downtrend characterized by a red descending channel, but several technical signals suggest a potential shift in sentiment [5] - From July to September, the stock price rose from $130 to $150, indicating improving market sentiment and suggesting that major investors may have established long positions [6] - Despite selling pressure near the $150 mark, the price action shows an attempt to break above the downtrend channel, with a recent bear trap indicating a shift in accumulation zones from around $130 to $140 [6] Future Outlook - If the bullish scenario continues, the stock may begin forming a new upward channel, with $150 identified as a critical resistance level for bullish investors [7]