Should I Buy PEP? PEP 2026 Analysis

Should You Buy PepsiCo Inc (PEP) Today? Analysis, Price Targets, and 2026 Outlook.

Conclusion

Hold

Latest Price

148.500

1 Day change

-0.19%

52 Week Range

160.150

Analysis Updated At

2026/01/26

PepsiCo Inc (PEP) is not a strong buy for a beginner, long-term investor at this moment. While the company has a strong dividend history and some positive analyst sentiment, the recent financial performance shows declining net income, EPS, and gross margin. Insider selling and significant congressional sales further indicate caution. The technical indicators are neutral to slightly bullish, but there are no strong proprietary trading signals to suggest immediate action. For a long-term investor, it may be better to wait for improved financial performance or a more favorable entry point.

Technical Analysis

The MACD is positive and contracting, RSI is neutral at 49.319, and moving averages are bullish (SMA_5 > SMA_20 > SMA_200). Key support and resistance levels are Pivot: 143.755, R1: 147.365, S1: 140.145, R2: 149.595, S2: 137.915. Overall, the technical indicators suggest a neutral to slightly bullish trend.

Options Data

Bullish

Open Interest Put-Call Ratio

Bullish

Option Volume Put-Call Ratio

Technical Summary

Sell

Buy

Positive Catalysts

PepsiCo has a strong dividend yield of 3.89% and a 53-year history of increasing dividends.
Analysts have recently upgraded the stock, with price targets ranging from $148 to $
The stock has a historical tendency to gain 14.61% in the next month based on similar patterns.

Neutral/Negative Catalysts

Insiders are selling heavily, with a 364.50% increase in selling activity over the last month.
Congress members have made 12 sale transactions with no purchases in the last 90 days, indicating caution.
Financial performance in Q3 2025 shows declining net income (-11.16% YoY), EPS (-10.80% YoY), and gross margin (-2.93% YoY).
Analysts have raised concerns about sector-level fundamentals and potential headwinds in 2026, including oil and currency risks.

Financial Performance

In Q3 2025, PepsiCo's revenue increased by 2.65% YoY to $23.94 billion. However, net income dropped by 11.16% YoY to $2.60 billion, EPS declined by 10.80% YoY to $1.90, and gross margin fell by 2.93% YoY to 53.91%. These trends indicate weakening profitability.

Growth

Profitability

Efficiency

Analyst Ratings and Price Target Trends

Analysts are mixed but leaning positive. BNP Paribas upgraded the stock to Outperform with a $179 price target, citing a 'win-win' setup. Barclays raised its price target to $148 but expressed concerns about fundamentals. Other analysts have price targets ranging from $148 to $179, with some highlighting potential risks in 2026.

12 Analyst Rating

Wall Street analysts forecast PEP stock price to rise over the next 12 months. According to Wall Street analysts, the average 1-year price target for PEP is 161.9 USD with a low forecast of 144 USD and a high forecast of 172 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.

6 Buy

6 Hold

0 Sell

Moderate Buy

Current: 148.780

Low

144

Averages

161.9

High

172

Current: 148.780

Low

144

Averages

161.9

High

172

BNP Paribas

Neutral -> Outperform

upgrade

$179

AI Analysis

2026-01-16

Reason

BNP Paribas

Price Target

$179

AI Analysis

2026-01-16

upgrade

Neutral -> Outperform

Reason

BNP Paribas upgraded PepsiCo to Outperform from Neutral with a $179 price target. The firm, which raised its FY27 EPS estimate by about 5%, sees activist involvement at Pepsi driving a proverbial "win-win" set-up, the analyst tells investors.

Barclays

Equal Weight

maintain

$144 -> $148

2026-01-16

Reason

Barclays

Price Target

$144 -> $148

2026-01-16

maintain

Equal Weight

Reason

Barclays raised the firm's price target on PepsiCo to $148 from $144 and keeps an Equal Weight rating on the shares. The firm adjusted targets in the consumer staples group as part of a Q4 earnings preview. Barclays attributes the recent "enthusiasm" in the stock to "a flight to safety" and remains concerned about company- and sector-level fundamentals. Potential oil and currency headwinds could materialize in 2026, the analyst tells investors in a research note.

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PEP Should I Buy

PEP Should I Buy

Should You Buy PepsiCo Inc (PEP) Today? Analysis, Price Targets, and 2026 Outlook.

Technical Analysis

Options Data

Technical Summary

Positive Catalysts

Neutral/Negative Catalysts

Financial Performance

Growth

Profitability

Efficiency

Analyst Ratings and Price Target Trends

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