Stock Price & Analysis

Based on the recent data and analysis, here's a concise assessment of PepsiCo's stock:

Technical Analysis

• PEP is currently trading at $149.12, showing signs of stabilization after a significant 25% decline from its 2023 peak
• RSI at 46.53 indicates neutral momentum, neither oversold nor overbought
• MACD shows potential bullish crossover with positive histogram of 0.75

Fundamental Strengths

• Strong dividend profile with 52 consecutive years of increases
• Current dividend yield of 3.6%, near historical highs
• Diversified business model across beverages, snacks, and packaged foods
• Recent strategic acquisitions (Siete Foods and Sabra) demonstrate growth initiatives

Current Valuation

• P/E ratio of 22x, below its 10-year median of 26x
• Trading below 5-year averages for both P/S and P/E ratios
• Attractive valuation compared to S&P 500's 31x multiple

Recent Analyst Actions

• JPMorgan: Price target lowered to $165 (10.65% upside)
• Deutsche Bank: Strong Buy rating with $178 target (20.2% upside)
• Barclays: Buy rating with $158 target (6.58% upside)

Buy Recommendation The stock appears attractive for purchase at current levels due to:

1. Historically high dividend yield
2. Discounted valuation metrics
3. Strong business fundamentals despite temporary headwinds
4. Multiple analyst buy ratings with significant upside potential

Based on the provided data and market analysis, here is the price prediction for PepsiCo (PEP) stock in 2025:

PepsiCo's stock is expected to reach $171 by end of 2025, driven by its strong market position and strategic acquisitions like Siete Foods and Sabra. The company's core earnings grew 5% year-over-year in Q3 2024 despite challenges, demonstrating operational resilience and effective cost management.

The technical indicators show RSI at 46.53 and MACD at -2.03, suggesting the stock is currently in a consolidation phase but not oversold. With strong support at $142.81 (Fibonacci S1) and resistance at $151.08 (Fibonacci R2), the stock has room for upward movement from its current price of $149.39.

The S1 support level for PEP Stock is $142.81 ,The R1 resistant level for PEP Stock is $149.12.

As of the end of day on 2025-01-24, the price of PEP Stock was $149.39.

The target price for PEP Stock according to analyst rating is 169.20, with the highest price target at 184.00 and the lowest at 155.00. Analysts have a Moderate Buy rating on PEP Stock overall.

The market cap of PEP is $204.6B.

Based on the provided data and recent market information, I'll analyze whether PEP is overvalued through multiple aspects:

Valuation Metrics Analysis

• Current P/E ratio of 26.13 in Q3 2024 is significantly higher than the industry average
• EV/EBITDA of 15.53 indicates premium valuation compared to historical levels
• P/S ratio of 2.66 suggests relatively high pricing relative to sales
• P/B ratio of 12.52 is notably above industry averages

Financial Performance

• Revenue growth has been modest, with Q3 2024 revenue at $23.32 billion
• Net margin has declined to 12.63% in Q3 2024 from 13.75% in Q2 2024
• High debt-to-equity ratio of 229.6% raises some concerns about financial leverage
• Current ratio of 0.89 indicates slightly tight liquidity position

Market Position & Recent Performance

• Stock has declined about 25% from 2023 peaks
• Current dividend yield of 2.95% is near historical highs, suggesting potential undervaluation
• Market sentiment has turned negative due to promotional pressures and margin concerns

Technical Analysis

Conclusion While PEP's current valuation metrics appear elevated, the recent 25% price decline and near-historical-high dividend yield suggest the stock is approaching fair value rather than being significantly overvalued. The company's strong market position and consistent dividend growth history partially justify its premium valuation multiples.

PepsiCo, Inc. is a beverage and convenient food company. The Company's segments include Frito-Lay North America, which includes its food businesses in the United States and Canada; Quaker Foods North America, which includes its food businesses, such as cereal, rice, pasta and other branded food, in the United States and Canada; PepsiCo Beverages North America, which includes its beverage businesses in the United States and Canada; Latin America, which includes its beverage and convenient food businesses in Latin America; Europe, which includes its beverage and convenient food businesses in Europe; Africa, Middle East and South Asia (AMESA), which includes all of its beverage and convenient food businesses in Africa, the Middle East and South Asia; and Asia Pacific, Australia and New Zealand and China Region (APAC), which includes all of its beverage and convenient food businesses in Asia Pacific, Australia and New Zealand, and China region. Its brands include Lays, Doritos and Cheetos.

Based on the provided data and analysis, here is the price prediction for PepsiCo (PEP) stock by 2030:

PepsiCo stock is projected to reach $210-230 by 2030, driven by its strong market position in both beverages and snacks segments, consistent dividend growth history, and strategic acquisitions. The company's diversified portfolio across food sectors and recent acquisitions like Siete Foods and Sabra position it well for sustained growth despite current market challenges.

The conservative growth projection considers PepsiCo's current challenges including volume declines and pricing pressures, but factors in the company's proven ability to navigate through various economic cycles while maintaining its Dividend King status with 52 consecutive years of dividend increases.

PEP has a total of 318000 employees.