PepsiCo stock saw a welcome improvement to its Relative Strength (RS) Rating on Tuesday, with an increase from 88 to 91.
When looking for the best stocks to buy and watch, one factor to watch closely is relative price strength. IBD's proprietary RS Rating tracks technical performance by using a 1 (worst) to 99 (best) score that identifies how a stock's price action over the trailing 52 weeks matches up against other publicly traded companies.
Decades of market research reveals that the top-performing stocks often have an RS Rating north of 80 in the early stages of their moves.
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Is PepsiCo Stock A Buy?
PepsiCo stock broke out earlier, but has fallen back below the prior 175.07 entry from a cup with handle. If a stock you're tracking clears a buy point then declines 7% or more below the original entry price, it's considered a failed base. Wait for the stock to set up and breakout from a new chart pattern and entry price. Also understand that the latest consolidation is a later-stage base, which makes it riskier to establish a new position or add shares to an existing one. Read "Looking For The Next Big Stock Market Winners? Start With These 3 Steps" for more tips.
While the beverage firm's top line growth fell last quarter from 12% to 9%, the bottom line grew 7%, up from 4% in the previous report.
PepsiCo stock holds the No. 2 rank among its peers in the Food-Packaged industry group. Hostess Brands is the top-ranked stock within the group.
