PepsiCo (PEP) reached a significant support level, and could be a good pick for investors from a technical perspective. Recently, PEP broke through the 20-day moving average, which suggests a short-term bullish trend.
PEP beats Q2 estimates on pricing power, but soft volumes and long-term growth questions loom.
Remember one thing when you consider consumer staples makers: You "need" the products they sell. That's particularly true when it comes to food-focused consumer staples companies like General Mills (GIS 0.01%), PepsiCo (PEP 1.02%), and Hershey (HSY 1.55%).
No company's stock rises in a straight line; there are always zigs and zags along the way. Most investors get excited about stocks when they are rising.
PEP doubles down on premium and functional drinks, betting on health-focused innovation to power future growth.
Recently, Zacks.com users have been paying close attention to PepsiCo (PEP). This makes it worthwhile to examine what the stock has in store.
PepsiCo (PEP -0.70%) announced second-quarter 2025 earnings that were stronger than Wall Street expected. The stock popped 6% the next day, which is great.
KO leans on global brand power and beverage focus, while PEP drives growth through diversification and valuation upside.
Blue-chip stocks are shares of large, well-established, financially stable companies with a consistent and reliable performance history.
Bonds remain attractive in 2025 with the yield on the 10-year treasury running in the low-to-mid 4% range. However, as slow as the pace may be, the FOMC is on track to begin reducing interest rates this year and bring them back to a “normalized” level over time.
PepsiCo's Q2 earnings beat expectations, but ongoing headwinds and weak cash flow mean the turnaround is still in the early stages. Recent acquisitions and AI-driven efficiencies offer medium- to long-term promise, yet cash flow remains insufficient to cover the dividend. Despite a 4% yield and 21% upside potential, risks persist due to declining profits and negative free cash flow.
PEP gains global market share with zero-sugar colas, Gatorade Zero, and a health-driven beverage push powering its second-quarter momentum.