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Markets weaken despite earnings beats3 Fast Food Stocks to Nibble OnPEP and NVDA: 3 More Top Recognized ESG Investing OptionsThis summary was created by AI, based on 12 opinions in the last 12 months.
PepsiCo (PEP) has displayed resilience in a challenging market environment, rallying 2.95% as investors seek safety in recession-proof stocks. While PepsiCo is known for its historic growth, particularly through its Frito-Lay segment, experts highlight that it is no longer the high-growth company it once was and is currently facing headwinds, including declining volumes and challenges from GLP-1 weight-loss drugs. Despite these challenges, the company has a strong dividend yield of around 3% and maintains some growth potential, particularly with market share gains in brands like Gatorade. Analysts express mixed feelings about the stock's valuation, with some stating it's significantly overvalued given its current growth metrics, while others see it as a steady defensive investment for conservative portfolios. Recent earnings results show modest revenue growth but also indicate a shift towards automation and healthier product options as they adapt to changing consumer preferences.
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.
We would be a bit agnostic on a name like PEP. It is large and stable and grows at mid-single digits but also trades at 20X forward earnings and should have tough comparable numbers over the next year, coming off of inflation pass through benefits. We think it would be fine for a 'steady eddie' type of name over the long term but also not something that excites us a whole lot.
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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, 15 stock analysts published opinions about PEP-Q. 5 analysts recommended to BUY the stock. 5 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.
15 stock analysts on Stockchase covered PepsiCo In the last year. It is a trending stock that is worth watching.
On 2025-04-03, PepsiCo (PEP-Q) stock closed at a price of $151.37.
Rallied 2.95% in today's sell-off as people sough safety in stocks that do well in a recession. Pays a 3% dividend.