New Price Targets for Alphabet, Chipotle and PepsiCo After Earnings
We're using big-picture charts to forecast future prices for three big-name stocks.
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Earnings season is once again under way. This week, investors heard from a wide variety of companies, from fast casual dining, to technology, to consumer goods and more.
Three names in particular stood out — not just due to earnings and revenue, but for what their charts are saying.
Let’s go to the charts and dig into three big names to see where they are headed next:
1. Alphabet (GOOG)
Alphabet GOOGL reported after Thursday’s close, and the company handily beat earnings expectations. Revenues also beat estimates. The Mountain View, California-based tech giant also raised its dividend and authorized a $70 billion share buyback plan.
Investors were pleased with the results, and the stock shot higher in after-hours trading.
On its monthly chart, Alphabet has formed a hammer pattern (shaded yellow). The last time this bullish candlestick pattern formed, the stock shot to an all-time high (arrow). We think that could happen again.
Price Target: $215
2. Chipotle Mexican Grill (CMG)
Chipotle CMG moved tentatively higher after reporting earnings on Wednesday. The fast casual dining chain beat earnings estimates, but fell short of anticipated revenue.
Perhaps more significant was Chipotle’s forward guidance, which anticipates a slowdown in consumer spending in 2025. The fact that the stock moved higher after that news was commendable, but the big picture for Chipotle is less than appetizing.
On Chipotle’s monthly chart, a large double-top pattern, which formed over a over-year period, is clearly visible (shaded yellow). Based on the chart below, a deeper decline is now likely.
This bearish topping pattern is particularly worrisome because it comes at the tail end of an incredible run. Chipotle shares gained 31% last year and 68% in 2023, and have provided investors with double-digit gains in six of the last seven years.
Price Target: $41
3. PepsiCo (PEP)
Over one-third of Pepsico’s PEP business is generated overseas. The Purchase, New York-based beverage company does business in over 200 countries and territories.
That’s bad news in the age of tariffs. Not only is PepsiCo heavily reliant on exports, it also imports most of its concentrate for U.S. sodas.
Therefore, it comes as no surprise that PepsiCo lowered its full-year estimates when it reported earnings on Thursday morning. The just-ended quarter featured a slight beat on revenue, but was otherwise dismal.
Shares of PepsiCo have been falling for nearly two years, losing 31% of their value in the process. On Thursday, the stock closed at a three-year low.
The good news for investors is that a major bullish trend line, extending back nearly 10 years (black dotted line), is finally coming into play. Investors are hoping that trend line will slow the descent of the beverage giant.
Price Target: $120
At the time of publication, Ponsi was long GOOGL.
