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NASDAQ:PEP

PepsiCo (PEP)

142.19
+0.17 (0.12%)
as of Jun 18, 2026, 11:45:58 pm Market Open.
121 watching
0
BUY ON WEAKNESS
They report Tuesday. They'll deliver great numbers, but will need to explain why raw costs, especially freight, keep going up. Shares trade too high, so buy only if share pullback after earnings.
COMMENT
The consumer staples sector had been an under-performer. Now it is still a headwind. It is a defensive piece for a portfolio, however.
DON'T BUY
Defensive, so it's been underperforming the broader S&P since last March. Bit expensive. 24x forward earnings for 7% earnings growth. Nice dividend at 3%. Higher end of 10-year valuation. Consumer staples is not a focus for him right now.
BUY

He expects a great report from them on Thursday, because their snack business given them more consumer exposure than Coke has. Their last quarter was fine, but the market yawn from being bored with consumer staples. He bets their business is accelerating.

COMMENT
An analyst raised her price target of PEP to $169 in a catch-up trade, following 5 years of underperforming peers. He agrees with her.
BUY

Allan Tong’s Discover Picks Analysts such as Jim Cramer would buy Pepsi stock now as the number of Covid cases could rise as the weather turns colder and more people stay at home to snack. Analysts expects its EPS to reach $1.50, which would return to last year’s levels. Pepsi pays a dividend just under 3%. The trailing PE has ballooned from 15.62x last December to the current 26.85x, which will give some investors pause. Read PEP and NVDA: 3 More Top Recognized ESG Investing Options for our full analysis.

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

BUY ON WEAKNESS

Stochchase Research Editor: Michael O'Reilly We are encouraged by the rebound in PEP stock recently. As we head into the next round of the pandemic, with more people at home for the holidays, we should expect sales to continue to recover. Analysts are calling for EPS of $1.47-$1.52, which would put it on track with last year's levels. We would look to buy on an opportunistic pullback to $135. Yield 2.95% (Analysts’ price target is $146.59)

BUY
It reports next week. People are snacking during Covid, like Pepsi's Frito-Lay chips. He likes it and would buy ahead of the report.
BUY
An excellent company with great growth as a packaged food play. Has a tremendous balance sheet. It's pulled back 11% from its highs and now pays a 3% yield. It's a snacking company and snacking is big during this pandemic.
DON'T BUY
Instead of holding utilities and telecoms? He hasn't drilled into their current earnings, but their valuation is extended and current restaurant (semi-) closures will impact Pepsi. Don't chase consumer products. Stick to utilities and telecoms because of good yields and valuations. Internet traffic has surged. The recovery won't happen as quickly as some think.
TOP PICK
It gives him some stability and safety in portfolios. About 3% yield and it is growing. You are buying a lot of their products in going to grocery stores and drug stores. It is a snack and beverage company. It is less exposed to the syrup business like pop in movie theatres and stadiums. You get a higher multiple and lower volatility. (Analysts’ price target is $143.11)
BUY
CO-N vs. PEP-Q. They are both consumer stables and he likes them because they are falling off maybe 20% from their high. He is more a Coke guy and it is close to EBV+7 at $39 and closed at $42.81. Close to $38-9 he would be a buyer, maybe even at this price. You can do one or the other and still be okay.
BUY

Very well-managed. They're not a straight beverage company like Coke. Pepsi has Frito-Lay, which is not healthy, but amounts to 50% of the company's profits. Pepsi has marketed F-L well. Pepsi is defensive and has sold off less than the current pullback.

BUY
No reason to sell this. It fails to sell off, actually.
DON'T BUY

Not enough growth here and he barely invests in consumer staples. A well-run company though. If you want dividend growth, look at the banks or utilities instead.

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