NASDAQ:PEP

PepsiCo (PEP) Stock Forecast, Price & News

$191.56

-0.50 (-0.26%)

(As of 05/18/2023 ET)

Compare

Today's Range: $190.41
▼
$191.71
50-Day Range: $179.43
▼
$196.12
52-Week Range: $154.86
▼
$196.88

Volume: 3.71 million shs
Average Volume: 4.40 million shs
Market Capitalization: $263.91 billion

P/E Ratio: 40.33
Dividend Yield: 2.40%
Price Target: $190.25

PepsiCo MarketRank™ Forecast

Analyst Rating: Hold
2.33 Rating Score
Upside/Downside: 0.7% Downside
$190.25 Price Target
Short Interest: Healthy
0.87% of Float Sold Short
Dividend Strength: Strong
Based on Four Factors
Sustainability: -1.42
Upright™ Environmental Score
News Sentiment: 0.47
Based on 33 Articles This Week
Insider Trading: Selling Shares
$15.84 M Sold Last Quarter
Proj. Earnings Growth: 8.22%
From $7.30 to $7.90 Per Share

Overall MarketRank^™

MarketRank is calculated as an average of available category scores, with extra weight given to analysis and valuation.

2.11 out of 5 stars

Consumer Staples Sector

49th out of 138 stocks

Beverages Industry

2nd out of 13 stocks

1.2

Analyst's Opinion

Consensus Rating
PepsiCo has received a consensus rating of Hold. The company's average rating score is 2.33, and is based on 5 buy ratings, 6 hold ratings, and 1 sell rating.
Price Target Upside/Downside
According to analysts' consensus price target of $190.25, PepsiCo has a forecasted downside of 0.7% from its current price of $191.56.
Amount of Analyst Coverage
PepsiCo has only been the subject of 4 research reports in the past 90 days.

3.0

Short Interest

Percentage of Shares Shorted
0.87% of the float of PepsiCo has been sold short.
Short Interest Ratio / Days to Cover
PepsiCo has a short interest ratio ("days to cover") of 2.7, which is generally considered an acceptable ratio of short interest to trading volume.
Change versus previous month
Short interest in PepsiCo has recently increased by 4.11%, indicating that investor sentiment is decreasing.

3.3

Dividend Strength

Dividend Yield
PepsiCo pays a meaningful dividend of 2.38%, higher than the bottom 25% of all stocks that pay dividends.
Dividend Growth
PepsiCo has been increasing its dividend for 52 years.
Dividend Coverage
The dividend payout ratio of PepsiCo is 96.84%. Payout ratios above 75% are not desirable because they may not be sustainable.
Dividend Sustainability
Based on earnings estimates, PepsiCo will have a dividend payout ratio of 58.23% next year. This indicates that PepsiCo will be able to sustain or increase its dividend.

1.5

Sustainability and ESG

Overall ESG (Environmental, Social, and Governance) Score
PepsiCo has received a -26.54% net impact score from Upright. The largest negative impact of PepsiCo in category "Physical diseases" seems to be driven mostly by its "Sugar-sweetened soft drinks", "Energy drinks", and "Salted crackers" products. See details.
Environmental Sustainability
The Environmental Impact score for PepsiCo is -1.42.

3.6

News and Social Media Coverage

News Sentiment
PepsiCo has a news sentiment score of 0.47. This score is calculated as an average of sentiment of articles about the company over the last seven days and ranges from 2 (good news) to -2 (bad news). This is a higher news sentiment than the 0.36 average news sentiment score of Consumer Staples companies.
News Coverage This Week
MarketBeat has tracked 33 news articles for PepsiCo this week, compared to 21 articles on an average week.
Search Interest
199 people have searched for PEP on MarketBeat in the last 30 days. This is an increase of 101% compared to the previous 30 days.
MarketBeat Follows
52 people have added PepsiCo to their MarketBeat watchlist in the last 30 days. This is an increase of 73% compared to the previous 30 days.

2.5

Company Ownership

Insider Buying vs. Insider Selling
In the past three months, PepsiCo insiders have sold more of their company's stock than they have bought. Specifically, they have bought $0.00 in company stock and sold $15,841,273.00 in company stock.
Percentage Held by Insiders
Only 0.15% of the stock of PepsiCo is held by insiders.
Percentage Held by Institutions
70.76% of the stock of PepsiCo is held by institutions. High institutional ownership can be a signal of strong market trust in this company.

1.9

Earnings and Valuation

Earnings Growth
Earnings for PepsiCo are expected to grow by 8.22% in the coming year, from $7.30 to $7.90 per share.
Price to Earnings Ratio vs. the Market
The P/E ratio of PepsiCo is 40.33, which means that it is trading at a less expensive P/E ratio than the market average P/E ratio of about 121.33.
Price to Earnings Ratio vs. Sector
The P/E ratio of PepsiCo is 40.33, which means that it is trading at a more expensive P/E ratio than the Consumer Staples sector average P/E ratio of about 15.74.
Price to Earnings Growth Ratio
PepsiCo has a PEG Ratio of 3.38. PEG Ratios above 1 indicate that a company could be overvalued.
Price to Book Value per Share Ratio
PepsiCo has a P/B Ratio of 15.36. P/B Ratios above 3 indicate that a company could be overvalued with respect to its assets and liabilities.

See Top Rated MarketRank™ Stocks Here

About PepsiCo (NASDAQ:PEP) Stock

PepsiCo, Inc. is a leading global food and beverage company operating in more than 200 countries. The company was founded in 1898 and was incorporated in 1965 through the merger of Pepsi-Cola and Frito-Lay and has since grown to become a multinational corporation with a diverse portfolio of brands. PepsiCo's headquarters are in Harrison, New York, with additional offices and manufacturing facilities worldwide.

PepsiCo's products include a range of popular beverages such as Pepsi, Mountain Dew and Gatorade, as well as snacks and food items under brands such as Fritos, Doritos, Tostitos and Quaker Oats. The company also owns a number of other brands, including Tropicana, Naked Juice and Sabra. Some key highlights of PepsiCo's recent history were the acquisition of SodaStream, a maker of home carbonation products, in 2018 and Rockstar Energy in 2020.

PepsiCo's current CEO is Ramon Laguarta, who took over from long-time CEO Indra Nooyi in 2018. Laguarta has been with the company for over two decades, having served in several executive positions before becoming CEO. Other notable members of PepsiCo's leadership team members include Hugh Johnston, Vice Chairman and Chief Financial Officer and Kirk Tanner, CEO of PepsiCo Beverages North America.

Over the past few years, PepsiCo has demonstrated consistent revenue growth the company's net income has also increased. PepsiCo's profit margins have remained steady over the past few years, with a gross profit margin averaging around 7%. The company has a relatively low debt-to-equity ratio indicating a relatively low level of debt compared to its equity. PepsiCo's current price-to-earnings ratio is slightly above the industry average. The company's price-to-book ratio is also above the industry average. These valuation metrics suggest that PepsiCo is currently trading at a slight premium to its peers. PepsiCo's stock has generally performed well over the past few years, with a steady increase in share price.

PepsiCo operates in the highly competitive food and beverage industry, characterized by constant innovation, changing consumer preferences and intense competition. The industry is also subject to significant regulatory and political pressures, particularly around issues such as health and wellness.

PepsiCo's main competitors include The Coca-Cola Company, Nestle and Kraft Heinz. These competitors constantly introduce new products and invest in marketing and advertising campaigns to gain market share.

One of the key trends in the food and beverage industry is a shift towards healthier, more sustainable products. PepsiCo has responded to this trend by investing in its healthier brands, such as Naked Juice and Sabra and committing to sustainability initiatives, such as reducing plastic waste and greenhouse gas emissions.

In addition to these broader industry trends, PepsiCo has faced specific challenges recently. For example, the company has had to contend with declining soda consumption in the United States as consumers increasingly turn to healthier beverage options.

PepsiCo has diversified its product portfolio to include more non-carbonated beverages such as Gatorade and Tropicana to address this trend.

Another challenge facing the industry is the increasing regulation of sugary and high-calorie food and beverages. In response, PepsiCo has made efforts to reduce its products' sugar and calorie content and has also introduced new low-sugar and low-calorie options.

Despite these challenges, PepsiCo has many growth opportunities in its pipeline. One key area of focus is the at-home beverage market following the acquisition of SodaStream in 2018. PepsiCo has also launched a line of at-home cocktail mixers under its Tostitos brand, further expanding its presence in the at-home beverage category.

PepsiCo has also invested in expanding its presence in international markets, particularly in emerging economies such as China and India. In 2020, the company announced plans to invest $5 billion in India over the next few years to expand its manufacturing facilities and distribution network.

In addition to these initiatives, PepsiCo has continued to invest in innovation and new product development. For example, the company recently launched a line of plant-based snacks under its Quaker Oats brand, catering to the growing demand for healthier and more sustainable food options.

Despite these growth opportunities, PepsiCo also faces several risks and challenges. One risk facing the company is the increasing focus on health and wellness, particularly in developed markets such as the United States and Europe. Consumers increasingly seek healthier, more natural food and beverage options, which could impact demand for PepsiCo's traditional soda and snack products.

PepsiCo is also subject to various regulatory and political pressures, particularly around sugar and calorie content, plastic waste and greenhouse gas emissions. These pressures could increase costs and regulatory compliance requirements, impacting the company's profitability and growth prospects.

Receive PEP Stock News and Ratings via Email

Sign-up to receive the latest news and ratings for PepsiCo and its competitors with MarketBeat's FREE daily newsletter.

PEP Stock News Headlines

May 17, 2023 | marketbeat.com

Up Over 2,600% in 5 Years, Wall Street Still Calls Celsius a Buy (PEP)

In the ultra-competitive beverage industry, Celsius is making a name for itself and is now up more than 20% year-to-date.

May 17, 2023 | marketbeat.com

Beyond Meat Turns A Corner, But Now Is Not The Time To Buy It (PEP)

Beyond Meat is not beyond hope, but that won't keep the share prices from falling; a new filing to raise capital and short-interest will see to that.

May 18, 2023 | Behind the Markets (Ad)

AI Creates New Cancer Drug - In Just 30 Days!

On December 22, 2022, AI discovered a new treatment for multiple myeloma... in just 4 months... On March 19, 2023, AI discovered a new drug for liver cancer... in only 30 days... There's one small-cap at the center of it all. Bill Gates owns 7 million shares... Billionaire hedge-fund manager Steve Cohen owns 1.4 million shares...

May 12, 2023 | marketbeat.com

PepsiCo Hits "Sweet Spot" For APAC Growth, Macros Agree

PepsiCo's APAC CEO points to renewed growth potential in the region, these macro indicators could be the key to unlocking a new all-time high price in the stock

May 12, 2023 | marketbeat.com

3 Recession-Proof Stocks With Nice Dividends (PEP)

Certain sectors like consumer staples and health care tend to outperform during economic turbulence. These three stocks are good names to own for the bad times.

May 8, 2023 | marketbeat.com

Tyson Foods: Is It Time To Cut Losses Or Load Up On Shares? (PEP)

Tyson Foods shares fell 10% on weak earnings and guidance, but the market may be at the point of capitulation and offering up the lowest prices it can.

May 4, 2023 | marketbeat.com

Kellogg Company Looks GRRR-eat! At These Levels (PEP)

Kellogg is a high-yield value among consumer staples stocks, and its shares are going on sale following a robust report and guidance increase.

May 4, 2023 | marketbeat.com

Hershey Hits the Sweet Spot with Sales, Earnings Growth (PEP)

Hershey's next moving-average pullback may offer a buy zone. The stock is up 7.82% in the past month after beating Q1 views and boosting its 2023 outlook.

May 18, 2023 | Base Camp Trading (Ad)

Beginner Traders Become Profitable With One Simple Trade?

Hi, 20-year Pro trader Dave Aquino here… I’ve helped many novice traders become full-time, profitable traders over the years… And inside my new free guide, “How to Master The Retirement Trade” I reveal the secret One Trade strategy that’s been the key to their success.

May 3, 2023 | marketbeat.com

Kraft Heinz Recovery Gains Momentum (PEP)

Kraft Heinz's turnaround gains momentum as the company reveals clear pricing power and widens margins. The dividend is getting safer by the quarter.

May 1, 2023 | insidertrades.com

Insiders Drive Volatility For Keurig Dr Pepper (PEP)

April 29, 2023 | marketbeat.com

MarketBeat Week in Review – 4/24 - 4/28 (PEP)

Earnings reports and economic data shows a weakening economy and the market will continue to look for direction before the Fed decision on interest rates