A Smarter Approach to Income Investing Before Money-Market Yields Drop
Written by Emily J. Thompson, Senior Investment Analyst
Updated: Oct 16 2025
0mins
Should l Buy PEP?
Source: MarketWatch
Current Money-Market Yields: Money-market funds currently offer an attractive yield of 4%, which is appealing due to their stable market value.
Investment Strategy Shift: Professional investors are increasingly turning to bonds as money-market rates are expected to decline, suggesting a need for diversification in investment portfolios for consistent income.
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Analyst Views on PEP
Wall Street analysts forecast PEP stock price to fall over the next 12 months. According to Wall Street analysts, the average 1-year price target for PEP is 161.90 USD with a low forecast of 144.00 USD and a high forecast of 172.00 USD. However, analyst price targets are subjective and often lag stock prices, so investors should focus on the objective reasons behind analyst rating changes, which better reflect the company's fundamentals.
12 Analyst Rating
6 Buy
6 Hold
0 Sell
Moderate Buy
Current: 169.150
Low
144.00
Averages
161.90
High
172.00
Current: 169.150
Low
144.00
Averages
161.90
High
172.00
About PEP
PepsiCo, Inc. is a global beverage and convenient food company. The Company’s segments include PepsiCo Foods North America (PFNA), PepsiCo Beverages North America (PBNA), International Beverages Franchise (IB Franchise), Europe, Middle East and Africa (EMEA), Latin America Foods (LatAm Foods), and Asia Pacific Foods. PFNA segment includes all of its convenient food businesses in the United States and Canada. PBNA segment includes all of its beverage businesses in the United States and Canada. IB Franchise segment includes its international franchise beverage businesses, as well as its SodaStream business. EMEA segment includes its convenient food businesses and beverage businesses with Company-owned bottlers in Europe, the Middle East and Africa. LatAm Foods segment includes all of its convenient food businesses in Latin America. Asia Pacific Foods segment consists of its convenient food businesses in Asia Pacific, including China, Australia and New Zealand, as well as India.
About the author
Emily J. Thompson
Emily J. Thompson, a Chartered Financial Analyst (CFA) with 12 years in investment research, graduated with honors from the Wharton School. Specializing in industrial and technology stocks, she provides in-depth analysis for Intellectia’s earnings and market brief reports.
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- Stock Buyback Initiative: The company announced a $10 billion stock buyback program, with $1 billion planned for fiscal 2026, reflecting management's confidence in future free cash flow growth and commitment to returning more capital to shareholders.
- Enhanced Market Competitiveness: Despite the recent stock price increase, PepsiCo's forward P/E ratio stands at 19.8, notably lower than Coca-Cola's 24.5, indicating that acquisitions in health-conscious and mini meal categories will bolster its market competitiveness and attract more dividend investors.
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- Corporate Strategies: Airlines like Delta and United are shifting their profit focus towards high-end markets by leveraging corporate travel and loyalty programs, reflecting a reliance on affluent consumers for revenue generation.
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- Shifting Market Dynamics: As investors pivot from high-growth sectors to value stocks, the consumer staples sector has emerged as one of the best-performing segments in 2026, reflecting a market preference for stable income despite ongoing pressures from reduced consumer spending.
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