Technical Analysis – 14 July 2023

Shares closed higher above the 5dEMA with a surge in volume. 50dEMA is about to cross the 200dEMA.
MACD just turned positive, RSI is constructive.
Long – Entry 46.0, Target 50.0, Stop 44.0

Shares closed above the 50dEMA with a surge in volume. The 5dEMA crossed the 20dEMA.
RSI is constructive, while MACD is positive.
Long – Entry 31.50, Target 33.00, Stop 30.75

Delta Air Lines, Inc. (DAL)

2Q23 Revenue: $15.58B, +12.7% YoY, beat estimates by $120M
2Q23 Non-GAAP EPS: $2.68, beat estimates by $0.29
3Q23 guidance: Expect EPS in the range of $2.20 to $2.50 vs. consensus of $2.05 and FY2023 EPS in the range of $6 to $7 vs. consensus of $6.19.
Comment: The company reported record revenue and profit for 2Q23, and expects a very strong 2H23 as well, riding on the wave of higher travelling demand across the globe. Pent-up demand has been fuelling a surge in international travels, with more searches and bookings made by consumers. According to U.S. Travel Association, the US total travel spending improved to 1.4% above May 2022 levels and was up 5.5% YTD through May 2023. This trend is expected to continue as travel demand reaches close to pre-pandemic levels. Falling jet fuel prices also reduces the cost of sales for airline companies, increasing the company’s profit margin. This is also likely to translate into low airfares which would drive more demand for travelling. Across the globe, the resumption of festivities and concerts has also contributed to the higher demand for travelling. 3Q23 recommended trading range: $45 to $65. Positive Outlook.

PepsiCo, Inc. (PEP)

2Q23 Revenue: $22.32B, +10.3% YoY, beat estimates by $590M
2Q23 Non-GAAP EPS: $2.09, beat estimates by $0.13
FY23 guidance: Expects FY organic revenue growth of 10% vs. 8% prior estimate and core constant currency EPS growth of 12% vs 9% prior. Core EPS of $7.47 is anticipated vs. $7.27 prior estimate and the consensus mark of $7.32.
Comment: PepsiCo exceeded expectations with a remarkable 13% growth in organic sales , surpassing estimated growth of 10%. Despite hiking the price of its products due to increased costs, demand has not only remained strong but has also contributed to a significant increase in sales growth, helping to maintain its margins. The recent classification by the World Health Organisation of the soda sweetener aspartame, used in certain Pepsi products, as a possible carcinogen, may momentarily impact its sales. However, we believe that should the need arise, PepsiCo will take the initiative to replace the classified sweetener with alternatives to ensure that demand and sales will remain strong. 3Q23 recommended trading range: $185 to $200. Positive Outlook.

达美航空 (DAL)

23财年第二季營收：155.8亿美元, 同比增幅12.7%，超預期$1.2亿美元
23财年第二季Non-GAAP每股盈利：2.68美元，超預期$0.29美元
23财年第三季指引：预计每股收益在2.20美元至2.50美元之间，而市场预期为2.05美元;全年每股收益在6美元至7美元之间，而市场预期为6.19美元。
短评：该公司公布了23年第二季度创纪录的营收和利润，并预计在全球旅行需求高涨的浪潮中，下半年也将表现强劲。被压抑的需求推动了国际旅行的激增，消费者进行了更多的航班搜索和预订。根据美国旅游协会的数据，美国旅游总支出比2022年5月的水平提高了1.4%，到2023年5月的年初至今增长了5.5%。随着旅行需求接近大流行前的水平，预计这一趋势将继续下去。航空燃油价格的下跌也降低了航空公司的成本，提高了公司的利润率。这也可能转化为低票价，从而推动更多的旅行需求。在全球范围内，庆祝活动和音乐会的恢复也促进了旅行需求的增加。第三季度建议交易区间：45 – 65美元。积极前景。

百事可乐 (PEP)

23财年第二季營收：223.2亿美元, 同比增幅10.3%，超預期$5.9亿美元
23财年第二季Non-GAAP每股盈利：2.09美元，超預期$0.13美元
23财年指引：预计本财年有机收入同比增长10%，而此前预计为8%；核心固定汇率每股收益同比增长12%，而此前预计为9%。核心每股收益预计为7.47美元，此前预期为7.27美元，市场普遍预期为7.32美元。
短评：百事可乐的有机销售额同比增长了13%，超出了预期的10%。尽管由于成本增加因而公司提高了产品价格，但消费者需求不仅保持强劲，而且还为销售额的大幅增长做出了贡献，并且维持了利润率。世界卫生组织最近将百事可乐某些产品中使用的汽水甜味剂阿斯巴甜列为可能致癌物质，这可能会暂时影响百事可乐的销售。然而，我们相信，百事公司将采取主动，用替代品取代这种分类甜味剂，以确保需求和销售保持强劲。第三季度建议交易区间：185美元至200美元。积极前景。