Stock Price & Analysis

Based on the provided data and recent market activity, here's a comprehensive analysis of PepsiCo stock:

Technical Analysis

The stock has shown positive momentum recently, with a 2.95% gain in the latest trading session. PEP is currently trading at $164.34, showing signs of recovery from its recent downtrend. The stock has formed a potential support level around $160-162 range.

Fundamental Strength

• Revenue Growth: 2023 revenue increased to $91.47B from $86.39B in 2022
• Net Income: Improved to $9.07B in 2023 from $8.91B in 2022
• Gross Margin: Expanded to 54.37% in 2023 from 53.53% in 2022

Recent Developments

1. Strategic Acquisition: PepsiCo announced acquisition of Siete Foods for $1.2B, expanding its better-for-you food offerings
2. Market Position: Currently trading at a P/E multiple of 19.8x, below industry average of 21.5x
3. Dividend Strength: Offers a 3.6% yield near historical highs

Buy Case

• Strong market position with diversified portfolio
• Attractive valuation compared to peers
• Consistent dividend growth (52 consecutive years of increases)
• Strategic acquisitions enhancing growth potential

Sell Case

• Near-term headwinds in North American market
• Volume challenges in recent quarters
• Competitive pressures in beverage segment
• Potential impact from health-conscious consumer trends

Recommendation: BUY

PepsiCo presents an attractive buying opportunity at current levels for long-term investors. The company's strong fundamentals, strategic acquisitions, and attractive valuation relative to peers make it a compelling investment. The recent price weakness provides a good entry point for investors seeking both growth and income.

Based on the provided data and references, here is a comprehensive analysis of PepsiCo's (PEP) stock price prediction for 2025:

Technical Analysis

• Current price: $153.50 (as of Feb 21, 2025)
• The stock is showing signs of recovery after recent consolidation, with RSI at 62.32 indicating moderate bullish momentum
• Key resistance levels: $166 (near-term), $171 (medium-term)
• Key support levels: $150, $147

Analyst Consensus & Price Targets

• According to 16 analysts, the consensus rating is "Moderate Buy" with:
  • 10 Buy ratings
  • 6 Hold ratings
  • 0 Sell ratings
• Average price target: $166.07 (8.19% upside potential)
• Price target range: $150-$185

Growth Projections According to multiple forecasts:

• Revenue 2025: Expected to grow 1.26% to $93.01B
• EPS 2025: Projected at $8.37 (20.5% growth)
• Dividend yield: 3.60% with consistent growth history

Price Predictions by Different Sources

• LongForecast: Projects $169 by end of 2025 (+10% from current)
• CoinPriceForecast: Forecasts $169 by end of 2025 (+10%)
• WalletInvestor: More conservative at $147.36 (-4% from current)

Key Growth Drivers

1. International market expansion
2. Diversified product portfolio beyond beverages
3. Strong brand recognition and distribution network
4. Consistent dividend growth history (53 consecutive years)

Risks

• Inflationary pressures affecting consumer spending
• Competitive pressures in beverage industry
• Potential regulatory challenges
• Market volatility and economic uncertainty

Conclusion Based on comprehensive analysis, PepsiCo's stock price is likely to reach $165-170 by end of 2025, representing approximately 10% upside from current levels. This projection is supported by:

• Strong analyst consensus
• Consistent revenue and earnings growth
• Solid dividend history
• Strategic international expansion

The S1 support level for PEP Stock is $142.93 ,The R1 resistant level for PEP Stock is $155.81.

As of the end of day on 2025-02-26, the price of PEP Stock was $156.21.

The target price for PEP Stock according to analyst rating is 166.06, with the highest price target at 185.00 and the lowest at 150.00. Analysts have a Moderate Buy rating on PEP Stock overall.

The market cap of PEP is $214.5B.

Based on the provided data and recent market activity, here's a concise analysis of PepsiCo's valuation:

Valuation Analysis PepsiCo is currently trading at a P/E ratio of 22x (Q4 2024), which is significantly below its 5-year average P/E of 26x. The stock has declined about 9% since the beginning of 2024, underperforming the broader S&P500 index.

Recent Performance

• Q4 2024 results showed mixed performance with revenue missing but earnings exceeding estimates
• Organic growth of 2% driven by 3% pricing increase, offset by 1% volume decline
• North American market continues to face challenges with volume declines:
  • Frito-Lay: -3%
  • PepsiCo Beverages: -3%
  • Quaker Foods: -6%

Growth Outlook Management's 2025 guidance indicates:

• Low single-digit organic revenue growth
• Mid-single-digit core EPS growth
• International business remains strong at $40 billion, representing 40% of sales with continued growth potential

Analyst Sentiment Recent analyst actions show mixed views:

• Morgan Stanley lowered PT to $168 (15.3% upside) citing muted organic sales growth
• Citigroup maintains Strong Buy with $170 PT (16.7% upside)
• JP Morgan lowered PT to $158 (2.9% upside) noting lack of near-term catalysts

Conclusion At current levels around $153, PEP appears slightly undervalued considering:

• Trading below historical P/E multiple
• Strong international growth prospects
• Stable dividend growth (53rd consecutive raise)
• Defensive business model with pricing power

However, near-term headwinds in North American market and volume challenges warrant the current valuation discount.

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 available data and market analysis, here is a projection for PepsiCo (PEP) stock price in 2030:

PepsiCo's stock is projected to reach approximately $245-255 by 2030, representing a 60-66% increase from current levels around $153. This forecast is supported by PepsiCo's strong market position in both beverages and snacks, consistent dividend growth history of over 50 years, and the company's proven ability to navigate through challenging market conditions while maintaining profitability.

The key drivers supporting this price target include:

1. Strong Business Fundamentals: PepsiCo maintains a diversified portfolio with leading positions in both beverages and snacks, particularly through its Frito-Lay business which is the #1 player in salty snacks.

2. Consistent Financial Performance: Despite recent challenges, PepsiCo has demonstrated resilience with expectations of low single-digit organic revenue growth and mid-single-digit core EPS growth in 2025.

3. Dividend Growth: The company's commitment to dividend growth, with a current yield of 3.6% and a 53-year track record of consecutive increases, provides a solid foundation for long-term value appreciation.

PEP has a total of 318000 employees.