PEP's international momentum, led by strong beverage sales, localization and supply chain investments, fuels optimism despite U.S. softness and FX headwinds.
Coca-Cola earns a BUY rating due to superior profitability, growth sustainability, and business model efficiency compared to PepsiCo, which is rated HOLD. KO's focused beverage model, higher net margins, and efficient cost structure give it a clear edge over PEP's diversified, capital-intensive operations. Both companies have manageable debt and similar solvency, but KO outperforms PEP in EPS growth and stability, reinforcing its investment appeal.
There's a predicament when it comes to investing because the best companies to buy aren't always the ones that investors are buying. Sometimes, emotions get the better of Wall Street, and stocks are bid up to levels that are hard to justify.
PepsiCo (PEP) closed at $131.92 in the latest trading session, marking a +0.96% move from the prior day.
The stocks of The Coca-Cola Company NYSE: KO and PepsiCo. Inc. NASDAQ: PEP are a source of debate between value and growth investors. In 2025, KO stock clearly holds the upper hand.
PepsiCo (NASDAQ: PEP) stock has decreased by 12% this year, lagging behind the S&P 500 index, which has increased by 1%. This drop can be linked to poor consumer sentiment and spending, further affected by the company's mixed Q1 results, where revenue slightly exceeded estimates, but earnings fell short.
Investors must always understand where they are in the stock market cycle. This is easier said than done, as all the noise can often blind participants to what they should be looking into and thinking about as well.
The lawsuit alleged the beverage company provided promotional pricing deals to a single big-box customer but didn't give the same incentives to other retailers.
PepsiCo and Monster battle for energy drink supremacy. Is scale or specialization the winning formula?
PEP's acquisition of Poppi strengthens its position in the fast-emerging functional beverage space, signaling a bold strategic pivot toward health innovation.
In the latest trading session, PepsiCo (PEP) closed at $131.98, marking a +0.37% move from the previous day.
Despite a defensive business model, PepsiCo's stock has declined 26% in the past year, underperforming broader markets and raising concerns about its future stability. PepsiCo's reliance on its snacking business, which generates most profits, is under pressure due to declining organic volumes and pricing power erosion. Valuation concerns arise as PepsiCo's enterprise value to free cash flow ratio is high, indicating the stock may not be the bargain it appears to be.