NASDAQ:PEP

PepsiCo (PEP)

142.51
-2.47 (1.70%)
as of Jul 8, 2026, 8:00:00 pm Market Open.
235 watching
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Investor Insights
star iconJul 8, 2026, 12:00 am

This summary was created by AI, based on 8 opinions in the last 12 months.

PepsiCo (PEP-Q) has faced a challenging market environment recently, with experts offering mixed reviews as the company reports its upcoming earnings. While some analysts see the current dip in stock price as a buying opportunity due to the stable 4% dividend yield and the strength of its Frito-Lay snack division, others express concern over the company's struggle with changing consumer preferences towards healthier options and the impact of GLP-1 weight-loss drugs. Despite these challenges, there is recognition of PepsiCo's efforts to adapt, with the CEO responsive to customer needs. However, the company's performance has lagged behind competitors like Coca-Cola, raising questions about future growth potential in an evolving consumer landscape.

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Consensus
Hold
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Valuation
Undervalued
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Similar
Coca-Cola,KO
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.
DON'T BUY
Defensive, so it's been underperforming the broader S&P since last March. Bit expensive. 24x forward earnings for 7% earnings growth. Nice dividend at 3%. Higher end of 10-year valuation. Consumer staples is not a focus for him right now.
BUY

He expects a great report from them on Thursday, because their snack business given them more consumer exposure than Coke has. Their last quarter was fine, but the market yawn from being bored with consumer staples. He bets their business is accelerating.

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