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Nervous markets await NvidiaThis summary was created by AI, based on 11 opinions in the last 12 months.
PepsiCo (PEP-Q) has demonstrated resilience amid recent market sell-offs, rallying 2.95% as investors sought stable stocks that perform well in recessions. While the company has a rich history, particularly with its Frito-Lay franchise, growth has slowed, leading to evaluations that some experts find to be overly optimistic. Concerns surrounding competition from weight-loss drugs like GLP-1 and declining volumes in snack sales have surfaced, impacting perceptions of growth potential. Despite these challenges, PepsiCo maintains a solid dividend yield of around 3.0% to 3.6% and is making efforts to innovate by adding healthier snack options and increasing automation to manage costs. Market analysts have recently downgraded their growth expectations, reflecting a cautious stance on PepsiCo's near-term performance.
Historic growth story of Pepsi was the Frito-Lay franchise. Not the growth company it was. Still trades at a reasonably high multiple for its growth rate. International sources of revenue, so the strong USD is a major headwind.
Companies in the snack space have traded off on the fears of GLP-1. Volumes are starting to drop. Growth metrics just don't support the valuations.
Before they reported early yesterday, several analysts were downgrading it, based on lowering organic growth forecasts, concerns over Frito-Lay, weakness in North America, and others. Results: 1.3% revenue growth vs. 2.7% expected, and -2% food and beverage sales volume. No surprise, so shares actually closed higher by the end of the day. Highlights of Q3: Gatorade gained market share, and core operating expanded 90 basis points despite more spending on ads. Pepsi reiterated full-year earnings growth of 8%. They will add more automation to cut costs and add healthier snacks. The street expected a bad quarter, so it sold off, but the quarter wasn't that bad.
The boring name in his portfolio. Yield is 3.1%, very secure, will grow around 6% over time. Very steady name, moving higher. With interest rates starting to fall, low-beta names like this will become more attractive. Paying 21x forward PE for 8% growth rate, not too bad. For the conservative part of your equity portfolio. 80% of shares are institutionally owned, so the smart money's in this stock.
PepsiCo is a American stock, trading under the symbol PEP-Q on the NASDAQ (PEP). It is usually referred to as NASDAQ:PEP or PEP-Q
In the last year, 11 stock analysts published opinions about PEP-Q. 5 analysts recommended to BUY the stock. 6 analysts recommended to SELL the stock. The latest stock analyst recommendation is . Read the latest stock experts' ratings for PepsiCo.
PepsiCo was recommended as a Top Pick by on . Read the latest stock experts ratings for PepsiCo.
Earnings reports or recent company news can cause the stock price to drop. Read stock experts’ recommendations for help on deciding if you should buy, sell or hold the stock.
11 stock analysts on Stockchase covered PepsiCo In the last year. It is a trending stock that is worth watching.
On 2025-04-24, PepsiCo (PEP-Q) stock closed at a price of $135.31.