In an environment fraught with uncertainty, PepsiCo still had the confidence to hand out a mid-single-digit payout hike. The food and beverage giant is positioning itself for a return to historical levels of growth beyond 2025. PepsiCo's interest coverage ratio was 14 in 2024.
I maintain a buy rating on PepsiCo despite technical concerns, citing stable EPS growth and a high 3.6% dividend yield. PEP has underperformed the Consumer Staples Sector ETF and S&P 500 since last year, with shares down 12% since Q3 2024. Key risks include consumer wellness trends, Frito-Lay North America challenges, and macroeconomic uncertainties, but long-term EPS growth targets remain optimistic.
PepsiCo has a stable dividend, but a range of other issues make it a sell. PEP's Yield At a Reasonable Price (YARP) valuation is unattractive, indicating high risk and more likely, further downside potential. Sales growth is struggling, margins have slipped, and macroeconomic factors pose challenges, making PEP a poor buy currently.
Like any trade dispute, the current one between the U.S. and some of our most high-profile trading partners is affecting companies disproportionally. Those affected by the goods slapped with levies are facing struggles, while those unaffected can breathe a sigh of relief.
PepsiCo has faced challenges with aggressive pricing, market share losses, and flat sales in 2024. Despite underperformance, PepsiCo's current low valuation and potential for sentiment improvement make it an appealing defensive investment with upside potential. PepsiCo's 2025 guidance suggests low growth, but resetting expectations could lead to a valuation rebound to a 20x multiple, targeting $180.
Major packaged food makers including Quaker Oats and Folgers coffee asked U.S. President Donald J. Trump for targeted exemptions from tariffs on imports like cocoa and fruit, according to a letter seen by Reuters.
Jefferies downgraded PepsiCo Inc (NASDAQ:PEP) stock to "hold" from "buy," and cut its price target to $170 from $171.
Jim Cramer breaks down why he's keeping an eye on shares of PepsiCo.
It is virtually impossible not to look at Coca-Cola (NYSE: KO) if you are considering buying PepsiCo (PEP 0.77%) and vice versa. The two companies are iconic and globally dominant beverage giants.
PepsiCo (PEP) closed at $153.88 in the latest trading session, marking a -0.2% move from the prior day.
When the market narrative becomes too widely accepted, excess seems to be created in some areas of the economy as businesses prepare for what's coming their way. Today's stock market seems to be focused on one theme and one theme only: stagflation.
Investors who have watched PepsiCo (PEP -1.15%) for years waiting for a good time to buy the stock have that opportunity right now. That problem is getting past the fact that the stock price has plunged more than 20% from its highs in 2023.