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This 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.

Consensus
Cautious
Valuation
Overvalued
COMMENT

Was just downgraded. The consumer is fed up with shrinking product, like potato chips per bag. Consumer products must take the hit and lower prices like this, which will shrink margins. But it's worth it as opposed to this shrinkage. 

BUY

Rallied 2.95% in today's sell-off as people sough safety in stocks that do well in a recession. Pays a 3% dividend.

DON'T BUY

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.

DON'T BUY

It reports Tuesday. The weight-loss drugs make it hard for PEP to thrive. It pays a 3.6% dividend, though.

DON'T BUY

GLP weight-loss drugs have hurt, and in some countries like India PEP has faced headwinds over their use of water, which is scarce is those places. 

DON'T BUY

A great consumer staples company. It's smart that they got into the snacks business, like Frito Lay. But it's a slow-growing, low-margin business. Pays a good dividend, but the valuation doesn't attract him, 15-20% too high.

premium

This is a Panic-proof Portfolio opinion which is available only for Premium members

Curated by Michael O'Reilly since 2020.
1550+ opinions with 4.81 rating (one of the best performing expert).

PAST TOP PICK
(A Top Pick Apr 04/24, Down 5.2%)Stockchase Research Editor: Michael O'Reilly

Our PAST TOP PICK with PEP has triggered its stop at $162.  To remain disciplined, we recommend covering the position at this time. 

WEAK BUY

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.

PAST TOP PICK
(A Top Pick Sep 14/23, Down 1%)

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.

DON'T BUY

It has been a great company for the past 40 years. There has been a consumer revolt on price increases. The growth rate is flat to down in the short term.

DON'T BUY

Great company. Smart to expand into snacks, unlike KO, gives diversification. Executes very well. Issue is valuation, 25+ PE range. As a value investor, not interested. Not sure the Ozempic craze is a threat, need to see ramifications.

WEAK BUY

OK, doesn't love it. Earnings were light in some sectors, but showed some resilience overall. Range-bound, kicking its way up. Consumer weaker right now, so he doesn't like consumer discretionary as much. Strong brand recognition, one of the better names in the space.

premium

This is a Panic-proof Portfolio opinion which is available only for Premium members

Curated by Michael O'Reilly since 2020.
1550+ opinions with 4.81 rating (one of the best performing expert).

TOP PICK
Stockchase Research Editor: Michael O'Reilly

PEP is known worldwide within the beverage and snack food sector and is a good defensive stock.  It trades at 26x earnings and supports a robust 50% ROE.  It has increased the dividend for 52 consecutive years.  Its yield is supported by a payout ratio of 75%, which is easily within reach as its debt repayment has been equaling dividends paid and still cash reserves grow.  We recommend setting a stop-loss at $162, looking to achieve $203 -- upside potential of 18%.  Yield 2.9%  

(Analysts’ price target is $187.03)
COMMENT

It reports Friday. Shares have been in a rut even though business is pretty good. He thinks people are worried about the impact of the hit weight-loss drugs.

WATCH

Consumer products are facing pressure around the world. Don't sell just for tax reasons. Instead, ask yourself is the original thesis for why you wanted to own a stock still valid? If not, let it go. What you choose to buy instead is a separate decision.

Showing 1 to 15 of 185 entries

PepsiCo(PEP-Q) Rating

Ranking : 3 out of 5

Star iconStar iconStar iconStar empty iconStar empty icon

Bullish - Buy Signals / Votes : 5

Neutral - Hold Signals / Votes : 0

Bearish - Sell Signals / Votes : 6

Total Signals / Votes : 11

Stockchase rating for PepsiCo is calculated according to the stock experts' signals. A high score means experts mostly recommend to buy the stock while a low score means experts mostly recommend to sell the stock.

PepsiCo(PEP-Q) Frequently Asked Questions

What is PepsiCo stock symbol?

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

Is PepsiCo a buy or a sell?

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.

Is PepsiCo a good investment or a top pick?

PepsiCo was recommended as a Top Pick by on . Read the latest stock experts ratings for PepsiCo.

Why is PepsiCo stock dropping?

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.

Is PepsiCo worth watching?

11 stock analysts on Stockchase covered PepsiCo In the last year. It is a trending stock that is worth watching.

What is PepsiCo stock price?

On 2025-04-24, PepsiCo (PEP-Q) stock closed at a price of $135.31.