How Is PepsiCo’s Stock Performance Compared to Other Food & Beverage Stocks?
With a market cap of $203.5 billion, PepsiCo, Inc. (PEP) is a leading global food and beverage company known for iconic brands like Pepsi, Lay’s, Gatorade, Quaker, and Tropicana. Headquartered in Purchase, New York, it operates in over 200 countries, offering a diverse portfolio of snacks, beverages, and nutrition products, with a strong focus on innovation and sustainability.
Companies valued at $200 billion or more are generally classified as “mega-cap” stocks, and PepsiCo fits this criterion perfectly. The company’s highly diversified portfolio of iconic food and beverage brands, balanced revenue mix, and vast global distribution network establish its brand power. Its strong marketing, financial stability, and consistent dividends enhance its market leadership
However, shares of the beverage giant pulled back 17.3% from its 52-week high of $179.73. Shares of PepsiCo have climbed over 12.7% over the past three months, lagging behind the Nasdaq Food & Beverage ETF’s (FTXG) 4.9% rise over the same time frame.
PEP stock is down 2.2% on a YTD basis, underperforming FTXG’s 2.3% rise. Moreover, shares of PepsiCo have dipped 14.5% over the past 52 weeks, compared to FTXG’s 11.4% over the same time frame.
PEP stock has been trading mainly above its 50-day moving average since the end of June and above its 200-day moving average since mid-August.
On Aug. 29, PEP shares climbed 1.1% after the company announced an expanded long-term strategic partnership with Celsius Holdings, Inc. (CELH). Under the deal, Celsius will acquire the U.S. and Canada rights to Rockstar Energy, while PepsiCo retains international ownership of the brand. PepsiCo will also invest $585 million in newly issued convertible preferred stock in Celsius and assume U.S. and Canadian distribution of Celsius’ portfolio, including its Alani Nu brand, which will be integrated into PepsiCo’s distribution system.
In comparison, rival The Coca-Cola Company (KO) is outperforming PepsiCo. Shares of Coca-Cola have dipped 3.9% over the past 52 weeks and have soared 10.8% on a YTD basis.
The stock has a consensus rating of “Moderate Buy” from the 21 analysts covering the stock, and the mean price target of $152.47 represents an upside potential of 2.6% from the prevailing market prices.
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.