With a market cap of $213.6 billion, PepsiCo, Inc. (PEP) is a global food and beverage company that manufactures, markets, distributes, and sells a wide range of beverages, snacks, cereals, dairy products, and convenient foods through multiple business segments worldwide. It serves consumers through extensive retail, foodservice, e-commerce, and direct-store-delivery networks across international markets.
Shares of the Purchase, New York-based company have underperformed the broader market over the past 52 weeks. PEP stock has increased 18.5% over this time frame, while the broader S&P 500 Index ($SPX) has rallied 30.6%. However, on a YTD basis, shares of the company are up 8.5%, slightly outpacing SPX’s 8.1% gain.
Focusing more closely, shares of PepsiCo have exceeded the State Street Consumer Staples Select Sector SPDR ETF’s (XLP) 3.9% gain over the past 52 weeks.
Shares of PepsiCo rose 2.3% on Apr.16 after the company reported stronger-than-expected Q1 2026 results, with revenue rising 8.5% to $19.44 billion and adjusted EPS came in at $1.61. Investor sentiment was also boosted by a 2% increase in North America foods volumes, the segment’s first growth in at least a year, driven by PepsiCo’s price cuts of up to 15% on snack brands such as Lay’s and Doritos to regain consumers and retailer shelf space.
For the fiscal year ending in December 2026, analysts expect PEP’s adjusted EPS to grow 6% year-over-year to $8.63. The company's earnings surprise history is promising. It beat the consensus estimates in the last four quarters.
Among the 22 analysts covering the stock, the consensus rating is a “Moderate Buy.” That’s based on eight “Strong Buy” ratings, 13 “Holds,” and one “Strong Sell.”
On Apr. 20, Barclays analyst Lauren Lieberman raised the price target for PepsiCo to $158 while maintaining an “Equal Weight rating.
The mean price target of $172.50 represents a 11.3% premium to PEP’s current price levels. The Street-high price target of $195 suggests a 25.8% potential upside.
On the date of publication, Sohini Mondal 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.
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