Purchase, New York-based PepsiCo, Inc. (PEP) manufactures, markets, distributes, and sells a broad range of beverages and convenient foods. It is valued at a market cap of $222.7 billion.
This food and beverage giant has outpaced the broader market over the past 52 weeks. Shares of PEP have rallied 16.5% over this time frame, while the broader S&P 500 Index ($SPX) has gained 15.4%. Moreover, on a YTD basis, the stock is up 16.5%, compared to SPX’s 1.1% return.
Zooming in further, PEP has also outperformed the First Trust Nasdaq Food & Beverage ETF (FTXG), which rose 5.3% over the past 52 weeks and 10.1% on a YTD basis.
On Feb. 3, shares of PEP rose 4.9% after it delivered better-than-expected Q4 earnings results. The company’s net revenue increased 5.6% year-over-year to $29.3 billion, surpassing consensus estimates by 1.2%. Moreover, its adjusted EPS came in at $2.26, up 15.3% from the same period last year and marginally ahead of Wall Street estimates. Moreover, PEP announced that it is cutting prices on Lay's, Doritos, Cheetos and Tostitos chips to win back customers exasperated by years of price hikes.
For fiscal 2026, ending in December, analysts expect PEP’s EPS to grow 5% year over year to $8.55. The company’s earnings surprise history is mixed. It exceeded the consensus estimates in three of the last four quarters, while missing on another occasion.
Among the 21 analysts covering the stock, the consensus rating is a "Moderate Buy,” which is based on eight “Strong Buy,” 12 “Hold,” and one "Strong Sell.”
The configuration is more bullish than a month ago, with seven analysts suggesting a "Strong Buy” rating.
On Feb. 4, DBS analyst Zheng Feng Chee maintained a “Hold” rating on PEP and set a price target of $175, indicating a 6.5% potential upside from the current levels.
While the company is trading above its mean price target of $160.30, its Street-high price target of $179 suggests an 8.9% potential upside from the current levels.
