PepsiCo Inc.
NASDAQ: PEPKey stats
Price chart
About PepsiCo Inc.
Beverages
Company profile
- IPO date
- Dec 18, 1919
- Website
- www.pepsico.com
Consumer Staples peers
How PEP compares to other large companies in the same sector.
| Company | Price | Today | Market cap | P/E |
|---|---|---|---|---|
 WMT Walmart Inc. | $126.79 | -1.81% | $1.01T | 46.16 |
 COST Costco Wholesale | $998.49 | -3.25% | $442.97B | 51.82 |
 PG Procter & Gamble | $145.18 | -1.01% | $337.35B | 20.50 |
 KO Coca-Cola Company | $77.49 | -0.88% | $333.18B | 25.42 |
 MDLZ Mondelez International | $59.02 | -0.12% | $75.63B | 30.86 |
Wall Street analyst ratings
DollarScout analysis
Editorial, not advice. See our methodology.
Bull case
PepsiCo's strength lies in its diversified portfolio of products, ranging from drinks to snacks, which cushions it against cyclical shifts. Strong brands like Gatorade and Tropicana enhance its competitive moat, allowing it to leverage marketing and innovation effectively. The company's foray into healthier food options, including products like Bubly and Quaker, aligns with growing consumer preferences for health and wellness. Its global distribution network provides a robust platform for growth, particularly in emerging markets, where demand for its products continues to rise. PepsiCo's 3.56% dividend yield is a big draw, offering consistency in returns for income-focused investors. Despite economic volatility, the reliable dividend payments provide investors with a perception of stability and security. With a P/E ratio of 26.05, PepsiCo is not cheapest but captures the market's confidence in its steady, albeit modest, growth trajectory. Finally, a beta of 0.4183 indicates low volatility, which is attractive in turbulent markets, especially for risk-averse investors looking for less exposure to market swings.
Bear case
One of PepsiCo's main challenges is the intensifying competitive environment, especially from Coca-Cola, which continuously innovates its product line-up. With a P/E ratio of 26.05, concerns arise whether PepsiCo is overvalued compared to peers that might offer similar returns at lower multiples. The ongoing shift towards healthier lifestyles remains a challenge for entities like PepsiCo traditionally associated with sugary products. Regulatory pressures, including sugar taxes, could impact margins significantly, especially in European markets and more health-conscious regions. The beverage industry also faces supply chain disruptions, raw material price inflation, and logistic challenges, making cost management difficult. Moreover, geopolitical tensions and trade policies can hurt PepsiCo's global operations, affecting revenues.
Who should buy PEP
PepsiCo is an excellent fit for long-term dividend investors with a 5-10 year horizon looking for steady income and moderate growth. It suits investors who value stable returns over high-risk, high-reward strategies. It's best for those who want a reliable staple in their portfolio that could cushion against market volatility.
Key risks
- Strong competition from beverage giants like Coca-Cola which can erode market share. - Regulatory challenges such as sugar taxes potentially impacting profitability. - Rising raw material costs and supply chain disruptions affecting product pricing. - Global economic and political instability could disrupt international operations.
Where to buy PEP
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Recent PEP news
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PepsiCo Inc (NASDAQ:PEP, XETRA:PEP) is expected to report first quarter 2026 results next Thursday before the market opens, with analysts at UBS expecting a largely in-line print but ongoing scrutiny around North American performance and the sustainability of recent improvements in...
Appointment marks first in a series of senior growth hires as Stagwell scales its integrated model following 25% new business growth in 2025 NEW YORK CITY, NY / ACCESS Newswire / April 10, 2026 / Stagwell (NASDAQ:STGW) today announced the appointment ...
PepsiCo (PEP) possesses the right combination of the two key ingredients for a likely earnings beat in its upcoming report. Get prepared with the key expectations.
London, 09 April 2026 – Sustainability LIVE: The US Summit has unveiled its food, beverage & retail programme, featuring senior executives from PepsiCo, Walmart, McDonald's, and other leading consumer brands. The programme explores sustainable sourcing, supply chain transformation, and the role of procurement in driving positive environmental impact across the value chain. Attendees gain insights from industry leaders on how consumer brands are embedding sustainability into their core business s
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