PepsiCo tends to have a strong seasonal pattern due to demand for soft drinks during the hot summer months. Furthermore, even if the US heads into a recession soft drinks tend to fare well as consumer staples since most people are still able to afford a can of Pepsi. In good and bad times consumers can usually afford the kinds of beverages that Pepsi Co sell. Does that make Pepsi worth buying in the potential face of a US recession?
Between June 24 and July 25 Pepsi stock prices have gained 8 times in the last 10 years and lost value twice. The average gain has been 3.52% and the largest loss was -3.84% in 2019. Will Pepsi shares gain again this time?
Major Trade Risks:
Any very negative news for Pepsi can send share prices lower as could continued high US inflation prompting the Fed to hike interest rates even more aggressively.
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