Pepsi faces historic underperformance against Coca-Cola, says Carter Worth

In the United States, a recent analysis by chart analyst Carter Worth has revealed worrying trends for PepsiCo in comparison to its major competitor Coca-Cola. According to three separate relative performance charts, Pepsi's performance against Coca-Cola has hit an extreme low point not seen in its history, suggesting that the stock's current situation is somewhat dire. The analysis indicates that over the last 10 years, Pepsi has significantly fallen below its 150-day moving average compared to Coca-Cola. This trend has only worsened in the last 20 and 40 years, making the underperformance increasingly stark. Worth advocates for a countertrend move, which implies treating this as an opportunity for short-term mean reversion in the stock market. The charts suggest that after such extensive underperformance, a bounce back could be likely soon, though it remains to be seen if this will materialize. As it stands now, investors and analysts may want to keep a close eye on market movements regarding these two beverage giants to potentially capitalize on a shift.