Watchlist: Coca-Cola or PepsiCo ?

April 24, 2024, 3:48 pm EDT

Coca-Cola or PepsiCo ?

Either Coca-Cola (KO) or Pepsi (PEP) is the most popular and well-known brand of soft drinks in the world for more than 100+ years of history. However, most people would ignore them as the investing vehicles in the portfolio setting except Warren Buffet or a few heavy-weight investors.

The reason is simple. Technically, these stocks move slowly in any direction. Fundamentally, they do not offer any breakthrough technology that could change the world like cryptocurrency, AI, or anything that makes people feel like they would produce explosive returns on investment. 

However, it could be interesting in look at these stocks in a new perspective. Especially, during turbulent markets like we are going through now with wars, inflation, and various uncertainties they seem to be a stable choice. Moreover, they could attract capital from some high flyers like GOOGL, META, AMZN, and MSFT where the stock prices have already been in the ceiling for a long time. 

When looking into the charts of both KO and PEP, we also notice that they made a broadening formation base. The most interesting part is that they are at the edge of potential breakout. They would start their uptrend rally when the resistance is broken. 

The other angle to look into these stocks is that they are unlikely to drop 5% or 10% suddenly. They went through numerous bull-bear cycles and they survived. Because most people would not give up Coca-Cola or Pepsi quickly regardless of economic conditions.

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