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Yahoo
23-05-2025
- Business
- Yahoo
PepsiCo Stock (PEP) Slips Into Buy-the-Dip Strikezone
PepsiCo (PEP) stock has been on a steady slide for two years, now trading at levels not seen since 2019. The company's grappling with some real challenges, like slowing growth, shifting consumer preferences, and the lingering sting of recent U.S. tariff rollbacks that still complicate supply chains. On the bright side, following this rough patch, PEP's valuation appears dirt cheap at 16.6x earnings, while its dividend yield just hit a record of 4.11%—well above the sector average of 2.4%. This setup has made me feel pretty optimistic about the stock's prospects from its current levels. Easily unpack a company's performance with TipRanks' new KPI Data for smart investment decisions Receive undervalued, market resilient stocks right to your inbox with TipRanks' Smart Value Newsletter PepsiCo, the powerhouse behind Doritos, Gatorade, and that classic cola, has seen its growth engine stall. Figures published last month showed a 1.8% revenue drop, with organic sales barely inching up 1.2%. North America's been tough, with snack volumes down 2% and beverage sales flat, as budget-conscious consumers cut back. The rise of weight-loss drugs like Ozempic hasn't helped, as people are snacking less, and Frito-Lay's feeling it most. Globally, it's a mixed bag. Emerging markets like India and Brazil posted 5% revenue growth, but it's not enough to offset the U.S. slump. PepsiCo's been investing heavily in marketing and acquisitions, like the prebiotic soda brand Poppi, to reignite demand, but results are slow to materialize. Investors are getting antsy, and the stock's 27% drop over the past year clearly reflects that frustration. The company's also dealing with internal hiccups, like supply chain software issues at Frito-Lay, which dented efficiency. While management is optimistic about fixing these, the lack of quick wins has kept pressure on the stock. In any case, I believe PepsiCo's global scale and brand strength give it room to maneuver, even if growth's stuck in low gear for now. The U.S.-China trade deal announced early last week may have, for now, sliced tariffs on Chinese imports from 145% to 30% for 90 days, offering PepsiCo some relief on inputs like aluminum for cans. However, a 20% tariff tied to fentanyl concerns persists, and Canada and Mexico still face 25% tariffs on non-USMCA goods, impacting PepsiCo's North American supply chain. These lingering costs and a now-expired de minimis exemption for low-value Chinese imports keep margins under pressure. CEO Ramon Laguarta noted on the Q1 earnings call that trade volatility continues to squeeze profitability, with core operating profit down 1%. PepsiCo's global supply chain, sourcing materials like corn and sugar across 200 countries, makes it vulnerable to these disruptions. Unlike Coca-Cola (KO), which has an edge here due to more domestic production, PepsiCo's reliance on imports amplifies tariff impacts. PEP is now exploring alternative sourcing, but costs remain elevated for the time being. Another headwind worth noting is the ongoing trend of consumers rethinking their diets, and PepsiCo is feeling the squeeze. Weight-loss drugs and growing scrutiny of processed foods, amplified by figures like the U.S. Health Secretary Robert F. Kennedy Jr. has put snacks like Cheetos in the crosshairs of government regulators. And then, in India, water usage concerns have sparked backlash against PepsiCo's operations, adding PR challenges. These shifts are denting demand for sugary drinks and salty snacks. PepsiCo's trying to pivot with healthier options like Bubly and Gatorade Zero, but its core portfolio still leans on traditional snacks and sodas. The recent Poppi acquisition for $1.95 billion—a fast-growing prebiotic soda brand—targets health-conscious consumers, but it's too small to move the needle yet. Meanwhile, rivals like Coca-Cola, with a stronger low-sugar lineup, are pulling ahead on margins. So naturally, investors worry PepsiCo's slow shift could cede market share. However, it's not all gloomy in PepsiCo's investment case. After its two-year slide, the stock is now trading at just 16.6x forward earnings, one of its lowest valuations ever. For context, its five-year average P/E stands at roughly ~25, including high interest rates for most of this period. For a company with iconic, recession-proof brands like Quaker and Tropicana, that's a steal. To grab a Dividend King that has raised its payouts for 53 consecutive years, trading at a multi-year low valuation and an all-time-high yield of 4.11%, is a lucrative opportunity to capitalize. Despite its prolonged underperformance, Wall Street analysts continue to have mixed feelings about PepsiCo's prospects. Specifically, PEP stock features a Hold consensus rating based on three Buys and 10 Hold recommendations over the past three months. Still, it's worth noting that no analyst rates the stock as a sell today. At $148.33, the average PEP stock price target implies an upside potential of ~14% from the current levels. PepsiCo stock has had a tough run, with growth stalls, tariff headaches, and health trends dragging it back to 2019 prices. But at 16.6x earnings and a 4.11% dividend yield, it's a blue-chip stock at a discount. Its global brands, 53-year dividend streak, and recession-proof business make it a safe long-term play. With trade talks potentially easing costs, I'm betting PEP's poised for a rebound. Disclaimer & DisclosureReport an Issue
Yahoo
23-05-2025
- Business
- Yahoo
PepsiCo Stock (PEP) Slips Into Buy-the-Dip Strikezone
PepsiCo (PEP) stock has been on a steady slide for two years, now trading at levels not seen since 2019. The company's grappling with some real challenges, like slowing growth, shifting consumer preferences, and the lingering sting of recent U.S. tariff rollbacks that still complicate supply chains. On the bright side, following this rough patch, PEP's valuation appears dirt cheap at 16.6x earnings, while its dividend yield just hit a record of 4.11%—well above the sector average of 2.4%. This setup has made me feel pretty optimistic about the stock's prospects from its current levels. Easily unpack a company's performance with TipRanks' new KPI Data for smart investment decisions Receive undervalued, market resilient stocks right to your inbox with TipRanks' Smart Value Newsletter PepsiCo, the powerhouse behind Doritos, Gatorade, and that classic cola, has seen its growth engine stall. Figures published last month showed a 1.8% revenue drop, with organic sales barely inching up 1.2%. North America's been tough, with snack volumes down 2% and beverage sales flat, as budget-conscious consumers cut back. The rise of weight-loss drugs like Ozempic hasn't helped, as people are snacking less, and Frito-Lay's feeling it most. Globally, it's a mixed bag. Emerging markets like India and Brazil posted 5% revenue growth, but it's not enough to offset the U.S. slump. PepsiCo's been investing heavily in marketing and acquisitions, like the prebiotic soda brand Poppi, to reignite demand, but results are slow to materialize. Investors are getting antsy, and the stock's 27% drop over the past year clearly reflects that frustration. The company's also dealing with internal hiccups, like supply chain software issues at Frito-Lay, which dented efficiency. While management is optimistic about fixing these, the lack of quick wins has kept pressure on the stock. In any case, I believe PepsiCo's global scale and brand strength give it room to maneuver, even if growth's stuck in low gear for now. The U.S.-China trade deal announced early last week may have, for now, sliced tariffs on Chinese imports from 145% to 30% for 90 days, offering PepsiCo some relief on inputs like aluminum for cans. However, a 20% tariff tied to fentanyl concerns persists, and Canada and Mexico still face 25% tariffs on non-USMCA goods, impacting PepsiCo's North American supply chain. These lingering costs and a now-expired de minimis exemption for low-value Chinese imports keep margins under pressure. CEO Ramon Laguarta noted on the Q1 earnings call that trade volatility continues to squeeze profitability, with core operating profit down 1%. PepsiCo's global supply chain, sourcing materials like corn and sugar across 200 countries, makes it vulnerable to these disruptions. Unlike Coca-Cola (KO), which has an edge here due to more domestic production, PepsiCo's reliance on imports amplifies tariff impacts. PEP is now exploring alternative sourcing, but costs remain elevated for the time being. Another headwind worth noting is the ongoing trend of consumers rethinking their diets, and PepsiCo is feeling the squeeze. Weight-loss drugs and growing scrutiny of processed foods, amplified by figures like the U.S. Health Secretary Robert F. Kennedy Jr. has put snacks like Cheetos in the crosshairs of government regulators. And then, in India, water usage concerns have sparked backlash against PepsiCo's operations, adding PR challenges. These shifts are denting demand for sugary drinks and salty snacks. PepsiCo's trying to pivot with healthier options like Bubly and Gatorade Zero, but its core portfolio still leans on traditional snacks and sodas. The recent Poppi acquisition for $1.95 billion—a fast-growing prebiotic soda brand—targets health-conscious consumers, but it's too small to move the needle yet. Meanwhile, rivals like Coca-Cola, with a stronger low-sugar lineup, are pulling ahead on margins. So naturally, investors worry PepsiCo's slow shift could cede market share. However, it's not all gloomy in PepsiCo's investment case. After its two-year slide, the stock is now trading at just 16.6x forward earnings, one of its lowest valuations ever. For context, its five-year average P/E stands at roughly ~25, including high interest rates for most of this period. For a company with iconic, recession-proof brands like Quaker and Tropicana, that's a steal. To grab a Dividend King that has raised its payouts for 53 consecutive years, trading at a multi-year low valuation and an all-time-high yield of 4.11%, is a lucrative opportunity to capitalize. Despite its prolonged underperformance, Wall Street analysts continue to have mixed feelings about PepsiCo's prospects. Specifically, PEP stock features a Hold consensus rating based on three Buys and 10 Hold recommendations over the past three months. Still, it's worth noting that no analyst rates the stock as a sell today. At $148.33, the average PEP stock price target implies an upside potential of ~14% from the current levels. PepsiCo stock has had a tough run, with growth stalls, tariff headaches, and health trends dragging it back to 2019 prices. But at 16.6x earnings and a 4.11% dividend yield, it's a blue-chip stock at a discount. Its global brands, 53-year dividend streak, and recession-proof business make it a safe long-term play. With trade talks potentially easing costs, I'm betting PEP's poised for a rebound. 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Epoch Times
16-05-2025
- Business
- Epoch Times
In-N-Out Removing Artificial Ingredients From Popular Drinks
The burger chain In-N-Out says it is taking artificial dyes out of two popular drinks, shortly after federal regulators announced a ban on several dyes and plans to work with companies to remove the rest voluntarily. A spokesperson for In-N-Out told news outlets in a May 15 statement that the chain is removing artificial coloring from strawberry milkshakes and pink lemonade. The company is replacing the dyes with natural coloring. In-N-Out is also going to provide customers in the future with ketchup that contains sugar as opposed to high-fructose corn syrup. The spokesperson attributed the changes to In-N-Out's 'ongoing commitment to providing our customers with the highest-quality ingredients.' The Food and Drug Administration (FDA), part of the Department of Health and Human Services (HHS), Officials said they would be working with companies to voluntarily remove the remaining six artificial dyes that regulators have authorized. Related Stories 4/22/2025 4/28/2025 One of those dyes is Red No. 40, which has been used to color pink lemonade and strawberry milk. 'In less than 30 days of HHS and FDA announcing plans to phase out petroleum-based dyes from the nation's food supply, American fast-food chain, In-N-Out Burger, is voluntarily eliminating synthetic dyes from a few of its menu items,' Health Secretary Robert F. Kennedy Jr. 'I encourage more companies to prioritize Americans' health and join the effort to Make America Healthy Again,' he added. In-N-Out did not respond to a query asking whether it plans to remove dyes from additional menu items in the future. Multiple other companies have recently said they would be removing dyes in the wake of the FDA's announcement. PepsiCo 'In the next couple of years, we'll have migrated all the portfolio into natural colors or at least provide the consumer with natural color options,' CEO Ramon Laguarta told investors in a call. Tyson Foods CEO Donnie King said in a separate call that the company is working to eliminate synthetic dyes in a process expected to be finished by June. The artificial dyes have been linked in research with behavioral problems. A clinical trial of several hundred children, for instance,
Yahoo
30-04-2025
- Business
- Yahoo
How Much Would It Take To Earn $100 A Month From PepsiCo Stock
Benzinga and Yahoo Finance LLC may earn commission or revenue on some items through the links below. PepsiCo (NASDAQ:PEP) engages in the manufacture, marketing, distribution, and sale of various beverages and convenient foods worldwide. The 52-week range of PepsiCo stock price was $131.80 to $183.39. PepsiCo's dividend yield is 4.01%. It paid $5.42 per share in dividends during the last 12 months. Don't Miss: Deloitte's fastest-growing software company partners with Amazon, Walmart & Target – Many are using retirement income calculators to check if they're on pace — On April 24, the company announced its Q1 2025 earnings, posting revenues of $17.92 billion, beating the analyst consensus estimate of $17.77 billion, as reported by Benzinga. Adjusted EPS of $1.48 missed the consensus estimate of $1.49. 'As we look ahead, we expect more volatility and uncertainty, particularly related to global trade developments, which we expect will increase our supply chain costs. At the same time, consumer conditions in many markets remain subdued and similarly have an uncertain outlook,' said CEO Ramon Laguarta. PepsiCo cut its full-year 2025 adjusted EPS outlook to $7.92, much lower than the consensus estimate of $8.27. Trending: It's no wonder Jeff Bezos holds over $250 million in art — If you want to make $100 per month — $1,200 annually — from PepsiCo dividends, your investment value needs to be approximately $29,925, which is around 224 shares at $133.38 each. Understanding the dividend yield calculations: When making an estimate, you need two key variables — the desired annual income ($1,200) and the dividend yield (4.01% in this case). So, $1,200 / 0.0401 = $29,925 to generate an income of $100 per month. You can calculate the dividend yield by dividing the annual dividend payments by the current price of the stock. The dividend yield can change over time. This is the outcome of fluctuating stock prices and dividend payments on a rolling instance, assume a stock that pays $2 as an annual dividend is priced at $50. Its dividend yield would be $2/$50 = 4%. If the stock price rises to $60, the dividend yield drops to 3.33% ($2/$60). A drop in stock price to $40 will have an inverse effect and increase the dividend yield to 5% ($2/$40). In summary, income-focused investors may find PepsiCo stock an attractive option for making a steady income of $100 per month by owning 224 shares of stock. There may be more upside to come as investors benefit from the company's consistent dividend hikes. PepsiCo has raised its dividend consecutively for the last 53 years. Check out this article by Benzinga for three more stocks offering high dividend yields. Read Next:'Scrolling To UBI' — Deloitte's #1 fastest-growing software company allows users to earn money on their phones. Image: Shutterstock Send To MSN: 0 This article How Much Would It Take To Earn $100 A Month From PepsiCo Stock originally appeared on Sign in to access your portfolio
New York Post
30-04-2025
- Business
- New York Post
PepsiCo to remove artificial ingredients from popular food items by end of 2025
Heeding the call to ban artificial ingredients by Health and Human Services Secretary Robert F. Kennedy Jr., PepsiCo isn't wasting any time getting started. Ramon Laguarta, PepsiCo Inc. chair and chief executive officer, said in an April 24 conference call that the company will reduce artificial ingredients and has already begun doing so, as Food Business News reported. Advertisement 'We've been leading the transformation of the industry now for a long time on sodium reduction, sugar reduction and better fats,' Laguarta said. 'Sixty percent-plus of our (portfolio) today doesn't have any artificial colors,' he said — and the company is 'undergoing that transition.' Laguarta cited examples such as Lay's and Tostitos, which 'will be out of artificial colors by the end of this year.' He added, 'So, we're well underway.' Advertisement RFK Jr. and Dr. Martin Makary, U.S. Food and Drug Administration commissioner, announced a ban on petroleum-based synthetic dyes from America's food supply last Tuesday. As the HHS noted in its news release, among the steps to be taken are 'establishing a national standard and timeline for the food industry to transition from petrochemical-based dyes to natural alternatives.' 'Initiating the process to revoke authorization for two synthetic food colorings — Citrus Red No. 2 and Orange B — within the coming months; and working with industry to eliminate six remaining synthetic dyes — FD&C Green No. 3, FD&C Red No. 40, FD&C Yellow No. 5, FD&C Yellow No. 6, FD&C Blue No. 1, and FD&C Blue No. 2 — from the food supply by the end of next year.' 3 In an April 24 conference call, PepsiCo Inc. chair and chief executive officer, Ramon Laguarta, said the company will reduce artificial ingredients. jetcityimage – Advertisement 3 Food Business News reported that the company has already started doing so after the ban was placed on artificial ingredients by Health and Human Services Secretary Robert F. Kennedy Jr. tanvirshafi – Certified nutritionist and 'Make America Healthy Again' supporter Liana Werner-Gray told Fox News Digital, 'This is a huge win for public health and long overdue.' Werner-Gray is the author 'The Earth Diet,' which began as a blog about what she ate to help promote healing and remedy her health problems after she was diagnosed with cancer. The Earth Diet, she said, is 'all about going back to nature and eating foods from nature, eating real nutrition, eating foods that God provides us with naturally,' she told Fox News Digital. Advertisement 3 Laguarta said Lay's and Tostitos 'will be out of artificial colors by the end of this year.' billtster – 'I've personally eliminated artificial dyes like Red 40, Yellow 5, Yellow 6, Blue 1 and others from my diet over 16 years ago when I started The Earth Diet, living a natural lifestyle,' Werner-Gray said. She would suffer from frequent major mood swings, anxiety, skin breakouts and energy crashes, as well as strong impulsive urges to eat processed food, she said. 'Once I removed these dyes and switched to natural, whole-food-based alternatives, those symptoms went away, too,' Werner-Gray said, adding that her clients have reported similar outcomes. In Werner-Gray's opinion, the manipulation of food has gone on far too long, she said. 'This move by the FDA under Secretary Kennedy and Commissioner Makary's leadership is a pivotal step toward restoring integrity in our food system,' she said. 'It's time we raise the standard. Clean, natural and nourishing food should be the norm, not a luxury.' Advertisement In the April 24 conference call, PepsiCo's CEO noted that its chips, puffs and other snacks are safe to consume and that the company stands by the existing science, according to reports. 'Every consumer will have the opportunity to choose what they prefer,' said Laguarta. Fox News Digital reached out to PepsiCo for additional comment.
