A Critical Moment For Costco Wholesale Corporation (COST), PepsiCo, Inc. (PEP)

A look at its monthly performance shows that Costco Wholesale Corporation (NASDAQ:COST) has recorded a -7.06% fall over the past 30 days. Over the past 12 months the stock has embarked on a rally that has seen it rise 13.53% and is now up by 3.34% since start of this year. The equity price rose 2.07% this week, a trend that has led to both investors and traders taking note of the stock. Its equity price dipped by -4.77% over the past three months which led to its overall six-month decrease to stand at -1.64%.

Experts from research firms are bullish about the near-term performance of Costco Wholesale Corporation with most of them predicting a $237.7 price target on a short-term (12 months) basis. The average price target by the analysts will see a 12.92% rise in the stock and would lead to COST’s market cap to surge to $104.77B. The stock has been rated an average 2.2, which roughly stands towards the bearish end of the spectrum. Reuters looked into the 29 analysts that track Costco Wholesale Corporation (NASDAQ:COST) and find out that 11 of them rated it as a Hold. 18 of the 18 analysts rated it as a Buy or a Strong Buy while 0 advised investors to desist from buying the stock or sell it if they already possess it.

A look at COST technical analysis shows that its 14-day Relative Strength Index (RSI) is in a neutral zone after reaching 48.71 point. Its trading volume has lost -879067 shares compared to readings over the past three months as it recently exchanged 1860933 shares. This means there is reduced activity from short-term traders as per session, its average trading volume is 2740000 shares, and this is 0.68 times the normal volume.

The price of PepsiCo, Inc. (NASDAQ:PEP) currently stands at $108.16 after it went up by $0.01 or 0.01% and has found a strong support at $107.7 a share. If the PEP price drops below that critical support, then it would lead to a bearish trend. In the short-term, a dip below the $107.24 mark would also be bad for the stock as it means that the stock would plunge by 0.85% from its current position. However, if the stock price is able to trade above the resistance point around $108.56, then it could likely surge higher to try and break the upward resistance which stands at $108.96 a share. Its average daily volatility over the past one month stands at 2.41%. The stock has plunged by 0.48% from its 52-weeks high of $107.64 which it reached on Jan. 23, 2018. In general, it is 11.3% above its 52-weeks lowest point which stands at $95.94 and this setback was observed on Sep. 05, 2018.

Analysts have predicted a price target for PepsiCo, Inc. (PEP) for 1 year and it stands at an average $116.29/share. This means that it would likely increase by 7.52% from its current position. The current price of the stock has been moving between $107.64 and $108.5. Some brokerage firms have a lower target for the stock than the average, with one of them setting a price target as low as $104. On the other hand, one analyst is super bullish about the price, setting a target as high as $133.

The PEP stock Stochastic Oscillator (%D) is at 45.23%, which means that it is currently neutral. The shares P/S ratio stands at 2.36 which compares to the 1.97 recorded by the industry or the 5.37 by the wider sector. The stock currently has an estimated price-earnings (P/E) multiple of 18.29, which is lower than the 18.66 multiple of 12-month price-earnings (P/E). The company’s earnings have gone up, with a quarterly increase rate of 5.3% over the past five years.

Analysts view PepsiCo, Inc. (NASDAQ:PEP) as a Hold, with 2.5 consensus rating. Reuters surveyed 23 analysts that follow PEP and found that 13 of those analysts rated the stock as a Hold. The remaining 10 were divided, with 9 analyst rating it as a Buy or a Strong Buy while 1 analysts advised investors to desist from buying PepsiCo, Inc. (PEP) shares or sell it if they already own it.