PEP Stock Analysis & Forecast (2026)

PepsiCo, Inc. Consumer Defensive Beverages - Non-Alcoholic
$157.67
Current Price
68%
Buy
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Data refreshed: April 20, 2026

Key Financial Metrics

Market Cap
$215.53B
P/E Ratio (TTM)
24.8x
P/E Forward
17.3x
Revenue Growth
8.5%
Gross Margin
54.4%
Net Margin
9.1%
Return on Equity
43.9%
Debt/Equity
2.45

AI Analysis Summary

PepsiCo, Inc. (PEP) is a Consumer Defensive company in the Beverages - Non-Alcoholic industry with a 68% Buy Score. Key strengths include Gross Margin (54.4%), Return on Equity (43.9%). Areas to watch: Debt/Equity (2.45). Our AI evaluates 8 fundamental categories including revenue growth, margin quality, balance sheet strength, cash flow generation, return on capital, and valuation metrics.

Revenue Growth: Moderate Gross Margin: Excellent Net Margin: Thin Return on Equity: Excellent Debt/Equity: High Risk

This analysis is generated by StrongBuyAnalytics AI using publicly available financial data from SEC filings, earnings reports, and market feeds. It is not personalized investment advice. See our methodology and disclaimer.

PEP Fundamental Analysis Report
PDF Report Preview
68%
Strong Buy Score
  • 8 Fundamental Categories Analyzed
  • Revenue & Growth Trends
  • Margin & Profitability Analysis
  • Balance Sheet Strength
  • Cash Flow Quality
  • Valuation Assessment
  • AI-Powered Investment Insights
Get Your Free PEP Report

How It Works: AI Stock Analysis in 60 Seconds

See how our AI analyzes PEP fundamentals to generate buy/sell signals and Strong Buy Scores.

Why PEP Has a 68% Score

Our AI evaluates PepsiCo, Inc.'s fundamentals across multiple dimensions. Here is what is driving the current Buy rating:

Recent Catalysts for PEP

Key developments and data points that may impact PepsiCo, Inc.'s trajectory:

Earnings grew 27.8% — accelerating profitability could drive re-rating.
Wall Street consensus target is $171.57 (+8.8% from current price), based on 21 analyst estimates.
Analyst consensus recommendation: Hold.
Institutional ownership at 79.9% — strong smart-money backing.
Dividend yield of 3.61% provides income while you wait for capital appreciation.

PEP vs. Peers

How PepsiCo, Inc. stacks up against comparable Consumer Defensive companies on key metrics:

Ticker Price Market Cap P/E Rev Growth Net Margin ROE
PEP $157.67 $215.53B 24.8x 8.5% 9.1% 43.9%
AAPL $270.23 $3.97T 34.2x 15.7% 27.0% 152.0%
MSFT $422.79 $3.14T 26.5x 16.7% 39.0% 34.4%
GOOGL $341.68 $4.13T 31.6x 18.0% 32.8% 35.7%
AMZN $250.56 $2.69T 34.9x 13.6% 10.8% 22.3%

Main Risks for PEP Investors

Every investment carries risk. Here are the specific risk factors our analysis identified for PepsiCo, Inc.:

Debt/Equity (2.45)
Low beta of 0.41 suggests limited upside participation in bull markets.
Short interest is elevated with a 3.3-day cover ratio, indicating bearish bets against the stock.
High leverage amplifies downside risk if revenue softens or interest rates rise.

Generate the full PDF report for a detailed risk-reward framework and bear-case scenarios.

PEP Balance Sheet & Cash Flow

A snapshot of PepsiCo, Inc.'s financial health based on the most recent filings:

Total Cash
$10.83B
Total Debt
$52.73B
Current Ratio
0.90
FCF Yield
4.1%
EBITDA
$18.70B
Operating Margin
17.0%

Data sourced from the latest SEC filings. Generate the full PDF report for detailed balance sheet and cash flow commentary.

PEP Valuation Snapshot

Trailing P/E
24.8x
Fairly valued
Forward P/E
17.3x
Earnings growth expected
Price / Book
10.6x
High intangible value
PEG Ratio
1.70
Fairly valued
Analyst Target (Mean)
$171.57
Range: $130 – $195
Dividend Yield
3.61%
5Y avg: 3.00%
52-Week Price Range — PEP is trading at 69% of its range
$127.60 (52W Low) $171.48 (52W High)

Is PEP a Buy Right Now?

Based on our AI-powered fundamental analysis, PEP has a Strong Buy Score of 68%, earning a "Buy" rating. This score synthesizes 8 key financial metrics to provide an objective investment signal.

Moderate Buy Signal

PepsiCo, Inc. shows mixed fundamentals with some strengths and areas to monitor. Positives include Gross Margin (54.4%). Watch for Debt/Equity (2.45).

PEP AI Buy & Sell Signals Explained

Our AI analyzes PepsiCo, Inc.'s financial statements to generate buy/sell signals based on quantitative metrics, not market sentiment or news headlines. Here's what drives the 68% score:

  • Revenue Growth: 8.5% year-over-year (positive)
  • Gross Margin: 54.4% (strong pricing power)
  • Net Margin: 9.1% (profitable)
  • Return on Equity: 43.9% (excellent capital efficiency)

Generate the full PDF report for complete category-by-category scoring and AI-powered investment recommendations.

Key Support / Demand Zones

Technical traders can view real-time demand and supply zones for PEP on our Demand Zones page. These zones identify key price levels where institutional buying or selling has historically occurred.

With PEP currently trading at $157.67, our system monitors proximity to these critical levels and can alert you when the stock approaches support or resistance zones.

Subscribe to demand zone alerts to receive real-time notifications when PEP reaches key technical levels.

Earnings & Revenue Outlook

PepsiCo, Inc. operates in the Consumer Defensive sector, specifically in Beverages - Non-Alcoholic. Understanding earnings trends is crucial for forecasting PEP's trajectory.

Current revenue growth of 8.5% exceeds the average company.

Visit our Earnings Calendar to track upcoming PEP earnings dates and historical beat/miss patterns. Sign up for earnings alerts to get notified before announcements.

PEP Stock Forecast (Next 3–12 Months)

Our AI projects PEP's trajectory based on current fundamentals and historical patterns. With a 68% Strong Buy Score, here's what the data suggests:

Mixed Outlook: PepsiCo, Inc. shows moderate fundamental strength. Revenue growth at 8.5% is positive but warrants monitoring. The stock may trade sideways or experience modest gains depending on execution and market conditions.

For a complete 12-month price forecast with specific bull/bear scenarios, generate the full PDF report.

Valuation Metrics (P/E, Growth, Margins)

Understanding valuation is critical for determining if PEP is fairly priced. Here's the current snapshot:

  • Market Capitalization: $215.53B
  • P/E Ratio (TTM): 24.8x (fairly valued)
  • Forward P/E: 17.3x (based on analyst estimates)
  • Debt/Equity: 2.45 (higher leverage)

Our AI weighs these metrics against growth rates and margin quality to determine if PEP offers compelling risk-adjusted returns at current prices.

Bull Case for PEP

Here's why investors are bullish on PepsiCo, Inc.:

  • Gross Margin (54.4%)
  • Return on Equity (43.9%)

While these positives exist, investors should weigh them against the risks outlined in the bear case below.

Bear Case & Risks for PEP

Every investment carries risk. Here are potential concerns for PEP investors:

  • Debt/Equity (2.45)

The full PDF report includes a detailed bear case analysis with specific risk ratings for each category.

Summary / 12-Month Outlook

PEP Summary: PepsiCo, Inc. earns a 68% Buy Score based on AI analysis of fundamental data. Trading at $157.67 with a $215.53B market cap, the stock presents a balanced risk/reward profile for the coming year.

Bull Case: Gross Margin (54.4%), Return on Equity (43.9%)

Watch: Debt/Equity (2.45)

For the complete analysis with specific price considerations, growth projections, and AI-powered buy/hold/sell recommendations, generate your free PEP PDF report.

Learn More About Stock Analysis

Deepen your understanding of the concepts used in this PEP analysis:

Fundamental Analysis Guide

Learn how to evaluate stocks using financial statements and key metrics.

Understanding P/E Ratio

What P/E ratio tells you about a stock's valuation and growth expectations.

Return on Equity (ROE)

Why ROE matters for stock selection and how to interpret it.

Stock Valuation Methods

Compare DCF, P/E, and other approaches to value stocks like PEP.

What Are Demand Zones?

Find key support and resistance levels for PEP and other stocks.

How to Read Earnings Reports

Understand earnings per share, revenue surprises, and guidance.

Related Tools for PEP

Demand Zone Analyzer PEP Live Chart Earnings Calendar Institutional Ownership Sector Scanner Average Down Calculator

Frequently Asked Questions about PEP

Is PEP a good buy right now?
PEP currently has a Strong Buy Score of 68% (Buy). PEP shows moderate buy signals. The stock has mixed fundamentals worth reviewing in detail. Generate a free PDF report for specific buy/hold/sell recommendations.
What is the PEP stock forecast for 2026?
Our AI forecasts PEP based on current fundamentals: revenue growth of 8.5%, net margin of 9.1%, and P/E of 24.8x. The 68% Strong Buy Score reflects our outlook combining growth trajectory, margin quality, and valuation. See the full 12-month projection in your PDF report.
What are key support and resistance levels for PEP?
View real-time PEP demand zones (support) and supply zones (resistance) on our Demand Zones page. With PEP currently at $157.67, you can see how close the stock is to key technical levels. Subscribe to get alerts when PEP approaches these zones.
How do PEP fundamentals compare to peers?
PepsiCo, Inc. operates in the Consumer Defensive sector. Key metrics for peer comparison: Gross margin 54.4%, ROE 43.9%, Debt/Equity 2.45. The 68% Strong Buy Score factors in how these metrics stack up against industry averages. Data is refreshed daily.
Is the PEP analysis PDF report free?
Yes! Your first PEP fundamental analysis report is completely free with no credit card required. The PDF includes the full Strong Buy Score breakdown, all 8 fundamental categories analyzed, AI-powered insights, and specific investment recommendations. Additional reports are available through our subscription plans starting at $24/month.
What is PepsiCo, Inc.'s market cap and P/E ratio?
PepsiCo, Inc. (PEP) has a market cap of $215.53B and a trailing P/E ratio of 24.8x (forward P/E: 17.3x). These valuation metrics are key factors in our Strong Buy Score calculation. See all metrics in the PDF report for comprehensive valuation analysis.

This PEP analysis is for educational and informational purposes only and does not constitute financial advice. All data is sourced from public filings and market feeds. Past performance does not guarantee future results. Read our full disclaimer.