NASDAQ:PEP

PepsiCo (PEP)

140.20
-3.30 (2.30%)
as of Jul 30, 2026, 8:00:00 pm Market Open.
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Investor Insights
star iconJul 30, 2026, 12:00 am

This summary was created by AI, based on 9 opinions in the last 12 months.

PepsiCo (PEP) is facing numerous challenges as it contends with rising demand for weight loss drugs, particularly GLP-1 medications, which are impacting consumer behavior, especially among younger demographics who are increasingly conscious of health. The company's North American business appears to be weakening, evidenced by recent downgrades and a notable decline in demand, particularly when compared to rivals like Coca-Cola. Although PepsiCo reported strong numbers last quarter, the recent market rotation has seen significant price adjustments, leading some experts to view current share prices as a potential buying opportunity. Additionally, despite the struggles, PepsiCo maintains a solid Frito-Lay snack division and offers an attractive 4% dividend yield, which some analysts find appealing amid the current volatility in the consumer staples sector.

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Consensus
Mixed
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Valuation
Undervalued
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Similar
Coca-Cola, KO
BUY

Last Thursday, they delivered excellent earnings. They will take out their December high of $186.

COMMENT

It reports Thursday and he expects a good quarter. But a growth hangover and negative macro economic data will hurt shares..

COMMENT
It's surprising to see a staple decline. All consumer stocks have been hit by inflation. PEP will recover over time. He prefers Nestle, more global.
TOP PICK
Current share price is expensive, but prospects are strong for business. Very stable business that is good for defensive investors. Ability to raise prices limited going forward, but has been excellent the past year. Potential for volume growth also very strong. Company focused on snack business as segment continues to grow.
BUY
Allan Tong’s Discover Picks Similarly, Pepsi made its numbers by raising prices by 17% and shrinking only 1% in product volume. Revenues were up 9% for Q3 YOY, totaling $21.97 billion and beating the street’s $20.84 billion. Its Q3 EPS came in at $1.97 well ahead of the expected $1.84. This despite weakness in Frito-Lay’s North American division. Total organic growth clocked in at 16%. Not only that but management raised full-year guidance from 10% organic revenue growth to 12% and raised EPS growth from 8% to 10%. Back to Frito-Lay: volumes dipped in the quarter, but revenue did pop 20%. Similarly, Quaker Food North American revenue rose 15% despite another decline in volume. Read 3 Fast Food Stocks to Nibble On for our full analysis.
BUY
They have pricing power, with 17% higher prices in products, but were only 1% down in volume. So, people are still spending.
BUY ON WEAKNESS
She wished she had bought this. She's been deterred because it always trades at a pricey 26x forward PE. They beat and raise no matter what over the past DECADE. Total organic growth by 16% let by Frit0 Lay North America (up 20%). Why? They have the products and pricing power. This is definitely a buy on pullback.
BUY
Wage growth and consumer spending are tied. Pepsi is a bellweather among consumer staples at 20% topline growth driven by higher prices. So, consumers can deal with price hikes. The staples can keep the price increases going even as their costs come down.
BUY
They report Tuesday morning. He expects a good story from because their input costs have fallen so much, including corn and aluminum. He's confident with them as long as transportation costs are under control.
WEAK BUY
Coke is very well run. Pepsi pays a 2.7% yield and is run well, too, but he prefers Coke.
PAST TOP PICK
(A Top Pick May 28/20, Up 38%) Still a great stock, but he sold it recently because of valuation and price appreciation. Staples are a strong performer this year, but PEP is trading at the high end of its range. Still likes it and will buy it when defensives falls out of favour.
WEAK BUY
It reports Tuesday, and he expects good numbers though he worries about freight costs and supply chain issues. Pays nearly a 3% yield.
COMMENT

PEP-Q vs. COKE-Q. He would be more inclined to take Pepsi as they diversified better and the growth has been better over the last few years.

BUY ON WEAKNESS
They report Tuesday. They'll deliver great numbers, but will need to explain why raw costs, especially freight, keep going up. Shares trade too high, so buy only if share pullback after earnings.
COMMENT
The consumer staples sector had been an under-performer. Now it is still a headwind. It is a defensive piece for a portfolio, however.
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