With a market cap of $180.9 billion, PepsiCo, Inc. (PEP) is a global leader in the manufacture, marketing, distribution, and sale of a broad range of beverages and convenient foods. The company distributes its products through direct-store-delivery, customer warehouses, third-party networks, and e-commerce platforms, serving a wide variety of retail and foodservice customers worldwide.
Companies valued at $10 billion or more are generally classified as “large-cap” stocks, and PepsiCo fits this criterion perfectly. Its diverse portfolio includes iconic brands such as Pepsi-Cola, Frito-Lay, Quaker, Gatorade, Tropicana, and Mountain Dew, operating across seven segments spanning North America, Latin America, Europe, Africa, the Middle East, South Asia, and the Asia Pacific region.
However, the Purchase, New York-based company pulled back 27.1% from its 52-week high of $180.91. Shares of PepsiCo have declined over 14% over the past three months, lagging behind the Consumer Staples Select Sector SPDR Fund’s (XLP) 1.2% decrease over the same time frame.
Longer term, the food and beverage giant is down 13.2% on a YTD basis, underperforming XLP’s 4.5% rise. Moreover, shares of PepsiCo have dipped 23.9% over the past 52 weeks, compared to XLP’s 7.3% return over the same time frame.
PEP stock has been trading mostly below its 50-day and 200-day moving averages since late-October last year.
Shares of PepsiCo fell 4.9% on Apr. 24 after the company reported mixed Q1 2025 results, with revenue of $17.9 billion beating estimates but declining 1.8% year-over-year, and adjusted EPS of $1.48 missing expectations. The company cut its 2025 outlook, projecting flat core constant currency EPS growth instead of the previously expected mid-single-digit increase, citing rising supply chain costs driven by tariffs and soft consumer demand. Additionally, weakness in the North American market contributed to the drop, with food volumes down 1% and beverage volumes falling 3%.
In comparison, rival The Coca-Cola Company (KO) is outperforming PepsiCo. Shares of Coca-Cola have gained 15.6% over the past 52 weeks and 14.8% on a YTD basis.
Despite PEP’s weak price action, analysts are moderately optimistic about its prospects. The stock has a consensus rating of “Moderate Buy” from the 20 analysts covering the stock, and as of writing, PEP is trading below the mean price target of $147.63.
