Commanding a market cap of $180.9 billion, PepsiCo, Inc. (PEP) is a global leader in the food and beverage industry, best known for its wide portfolio of iconic brands. Headquartered in Purchase, New York, PepsiCo operates in more than 200 countries and territories.
Shares of this food & beverage behemoth have underperformed the broader market over the past 52 weeks. PEP has declined 25.9% over this time frame, while the broader S&P 500 Index ($SPX) has rallied 9.2%. In 2025, PEP is down 13.6% compared to SPX’s 3.7% plunge on a YTD basis.
Zooming in further, PEP has underperformed the Nasdaq Food & Beverage ETF’s (FTXG) 8% decline over the past year and a 1.3% drop on a YTD basis.
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On May 6, PEP shares hit a 52-week low of $130.16, marking a steep 28.7% drop from its 52-week high of $183.41. The stock has faced a difficult year, driven by weak consumer demand, product recalls in its Quaker Foods North America segment, and recent tariff-related pressures.
For the current fiscal year, ending in December, analysts expect PEP’s EPS to grow 3.3% year over year to $7.89. The company’s earnings surprise history is mixed. It beat the consensus estimates in three of the last four quarters, while missing on another occasion.
Among the 20 analysts covering the stock, the consensus rating is a “Moderate Buy.” That’s based on seven “Strong Buy” ratings, 12 “Holds,” and one “Strong Sell.”
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The configuration is less bullish than a month ago, with eight analysts suggesting a “Strong Buy.”
On Apr. 25, Morgan Stanley (MS) analyst Dara Mohsenian lowered PepsiCo’s price target from $168 to $153 while maintaining an “Equal Weight” rating. The downgrade follows disappointing Q1 results, including a 4% volume decline in the high-margin Frito-Lay North America segment and an 8% drop in year-over-year EPS. The firm expressed concerns over ongoing challenges in U.S. organic sales growth, weak snack category performance, and structural beverage market share pressures.
The mean price target of $150.47 represents a premium of 14.5% to PEP’s current levels. The Street-high price target of $172 implies a potential upside of 30.9% from the current price level.
On the date of publication, Kritika Sarmah did not have (either directly or indirectly) positions in any of the securities mentioned in this article. All information and data in this article is solely for informational purposes. For more information please view the Barchart Disclosure Policy here.