PepsiCo, Inc. Monthly Stock Report - January 02, 2026

Company Overview

PepsiCo, Inc. (NASDAQ: PEP), founded in 1898 and headquartered in Purchase, New York, is a leading player in the non-alcoholic beverage industry. Operating within the consumer defensive sector, PepsiCo manufactures, markets, and distributes a diverse range of beverages and convenient foods globally. The company's extensive product portfolio includes popular brands such as Lay's, Doritos, Gatorade, and the flagship Pepsi-Cola, catering to a broad customer base through multiple channels including grocery stores, convenience shops, and e-commerce platforms. PepsiCo's robust market presence, with its operations segmented across various regions -- North America, Latin America, Europe, Africa, the Middle East, South Asia, and Asia Pacific -- positions it as a formidable entity in a sector characterized by stability and consistent demand.

52-Week Price Performance Analysis

52-Week Price Performance Chart

An examination of PepsiCo's 52-week stock price chart reveals a primarily sideways trend interspersed with periods of volatility. Over the past year, the stock price has fluctuated between a 52-week high of $160.15 and a low of $127.60. Currently trading at $143.52, the stock is situated near the lower end of this historical range.

Key technical indicators show that support is established around the $125 level, while $150 acts as a significant resistance level. This delineates a critical trading range for investors to watch. Recently, the fifty-day moving average of $147.00 indicates that the stock has been underperforming slightly, but it is worth noting the pattern of higher lows being formed, albeit without a decisive breakout past the $150 resistance.

Momentum analysis suggests that the stock may be in a prone consolidation phase. Traders should focus on the following key price levels: - Support Level: $140 (recent resilience signals) - Resistance Level: $150 (potential breakout signal)

All these factors suggest that if purchasing interest picks up, a break above the $150 threshold could lead to bullish behavior, while a drop below *$140 may indicate bearish momentum.

Financial Performance and Metrics

PepsiCo's financial metrics portray a company with strong operational performance. For the fiscal year, the firm has reported an impressive total revenue of $92.37 billion, alongside an EBITDA of approximately $17.02 billion. These figures underline a robust financial health, demonstrating not only revenue generation capability but also significant operational profitability.

• Current Stock Price: $143.52
• EBITDA: $17.02 billion
• Total Revenue: $92.37 billion
• Shares Outstanding: 1,367,340,122
• Short Interest: 21,269,278 shares (approximately 0.0156% of the float)

The presence of a low short interest ratio suggests that most investors maintain a bullish sentiment towards the stock, indicative of confidence in the company's ongoing business model and potential for growth.

Recent News and Developments

Recent developments have notably influenced the market landscape for PepsiCo:

• Trading Activity Surge: On December 26, 2025, PepsiCo's trading volume soared by 90.09%, making it the 50th highest in trading activity, a sign of heightened investor interest.

• Dividend Announcement: The company declared a quarterly dividend of $1.4225 per share, yielding approximately 4.0%, though some analysts express caution due to a payout ratio exceeding 100%.

• Strategic Stake Acquisition: Elliott Investment Management has acquired a $4 billion stake in PepsiCo, becoming one of its largest shareholders. The activist firm aims to push for strategic changes, although specific plans have not been disclosed.

• Operational Streamlining: In a bid to optimize operations, PepsiCo is set to cut nearly 20% of its product offerings by early 2026. This move is aimed at investing further in marketing and enhancing consumer value.

Market Sentiment and Analyst Recommendations

The current market sentiment surrounding PepsiCo reflects a mix of optimism and caution.

• Analyst Consensus: The average target price for PepsiCo is approximately $155.91, with a high target of $172.00 and a significantly lower target of $115.00. This indicates fairly optimistic expectations with room for upside potential.

• Investment Recommendations:

• Hold recommendation stands, as corroborated by a mean recommendation score of 2.71, suggesting investors should proceed with prudence rather than aggressive allocation.

• Recent Ratings:

• JPMorgan upgraded its rating from Neutral to Overweight, expecting high-single-digit total shareholder returns in 2026, bolstered by plans for an accelerated agenda of innovation and cost productivity.
• Conversely, Evercore ISI lowered its price target to $140, indicating challenges in specific market segments such as Frito-Lay.

Overall, analyst sentiment and strong financial metrics indicate that while PepsiCo is well-positioned, caution may be warranted, especially in light of ongoing consumer pressure and strategic shifts within the company.

Conclusion

PepsiCo, Inc. stands strong as a resilient player in the consumer defensive sector, showcasing solid revenues and a credible business model. However, investors must tread carefully due to market fluctuations and mixed external signals. At the current price of $143.52, PEP could present a compelling opportunity for investors looking for stability amidst a potentially volatile market environment, but the recommendation to hold suggests a strategic approach to engagement with this fundamentally sound company.

With ongoing developments and an evolving market sentiment, investors should remain vigilant, weighing both productivity enhancements and external pressures that could influence the stock's trajectory in the coming months.