PepsiCo Inc (NASDAQ:PEP) is trading at $157. The share price has declined for three consecutive weeks due to the bear market. PepsiCo’s price is less volatile when compared to the market. This makes it a good stock to consider for the bear market.
Fundamental analysis shows the company’s ROE at 63.24%, while the ROA is 11.04%. The EPS is projected at $7.35, bringing the PE to 21.47. PepsiCo has a dividend yield of 2.93%. It means that holding the stock in a bear market would not only attract low volatility. Holding also comes with a regular income.
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PepsiCo is a consumer defensive company. It means that demand will remain strong despite the bear market. PepsiCo is projected to grow its EPS by 7.57% annually for the next 3 to 5 years.
PepsiCo has support at $153 and resistance at $173
Technical analysis shows that PepsiCo has support at $153. We think that the support will hold despite the bear market. If the support were to be breached, the stock would establish a new level at $129. The latter is highly unlikely to occur. This is because the market is already considered to be close to or already at the bottom. With the decline occurring fast, the recovery will be expected to be as quick. The resistance is at $173, but that is of little concern in the bear market.
Summary
We recommend buying PepsiCo for the bear market. PepsiCo is a consumer defensive stock. It is attractive because of the low volatility in price and the regular dividend income.
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Source: https://invezz.com/news/2022/06/21/buy-and-hold-pepsico-as-volatility-remains-low-and-dividends-regular/