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. | $131.45 | -0.76% | $1.04T | 47.86 |
 COST Costco Wholesale | $1048.95 | +0.74% | $465.37B | 54.44 |
 KO Coca-Cola Company | $80.82 | +0.46% | $347.73B | 25.38 |
 PG Procter & Gamble | $141.57 | -0.80% | $329.66B | 19.84 |
 MDLZ Mondelez International | $60.44 | -0.87% | $77.58B | 29.67 |
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
While Coca-Cola and PepsiCo remain the titans of the beverage industry, they now face significantly increased competion for consumers. Energy drinks and functional beverages now fight for shelf space alongside traditional sodas. In addition, Keurig Dr. Pepper's Dr. Pepper has become the second-best ...
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PepsiCo Inc: PepsiCo - Muscle Milk launches reformulated shakes with ultra-filtered milk with no artificial sweeteners, flavors or added colors...
The reformulated beverage amps up the protein while cutting artificial colors, sweeteners and flavors, positioning it to stand out among competitors like Coca-Cola's Core Power.
PepsiCo, Inc. (NASDAQ:PEP) is one of the 10 Best Stocks to Buy in Falling Markets According to Wall Street Analysts. On May 5, 2026, PepsiCo, Inc. (NASDAQ:PEP) announced a new collaboration with agriculture technology company TalusAg aimed at advancing fertilizer decarbonization across global agricultural supply chains through low-carbon ammonia environmental attributes. PepsiCo said the agreements […]
The Procter & Gamble Company (NYSE:PG) was one of the stocks on which Jim Cramer shared his take, explaining that dot-com analogies do not hold up in this market. Cramer showed confusion regarding adding more of the stock to the Charitable Trust’s portfolio, as he commented: Back in 1999, we had some stocks of companies […]
Whether the transactions reflected direct trading activity by Trump or activity conducted through managed accounts is not clear.
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