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Shares of PepsiCo Inc. PEP hit a new 52-week low of $130.16 yesterday, before rising 0.4% to close trading at $130.74. The current price reflects a 28.7% discount from its 52-week high of $183.41, highlighting a challenging year for the beverage company. Overall, the PEP stock has trended downward in the past year, driven by challenges in its North America operations since the start of 2024, including reduced consumer demand and product recalls in the QFNA segment. Additionally, the recent tariff-related headwinds have led investors to lose confidence in the stock’s prospects.
In the year-to-date period, PEP shares have declined 14% against the broader industry’s 6.9% rise and the Zacks Consumer Staples sector’s 5% growth. The stock has also underperformed the S&P 500’s decline of 4.3% in the same period.
PepsiCo’s YTD Stock Price Performance
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PEP shares have underperformed its close competitor The Coca-Cola Company’s KO gain of 15.2% in the year-to-date period. PEP also lagged other industry peers, including Monster Beverage (MNST) and Keurig Dr Pepper’s (KDP) 14.2% and 6.2% growth, respectively.
PepsiCo trades below the 50-day and 200-day simple moving averages, indicating a bearish sentiment.
PEP Stock Trades Below 50 & 200-Day Moving Averages
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Estimate Revision Trend for PEP
The Zacks Consensus Estimate for PepsiCo's 2025 EPS moved down 4.1% in the last 30 days. The negative estimate revision trend reflects analysts’ concerns about the impacts of tariffs on the company’s results. The consensus estimate for 2026 EPS has moved down 4.7% in the past 30 days. (See the Zacks Earnings Calendar to stay ahead of market-making news.)
For 2025, the Zacks Consensus Estimate for PEP’s sales implies year-over-year growth of 0.4%, whereas the EPS estimate suggests a decline of 2.8%. The consensus mark for 2026 sales and earnings indicates 3.3% and 5.7% year-over-year increases, respectively.
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Analyzing PEP Stock’s Drop to 52-Week Low
PepsiCo has faced a series of headwinds that have weighed on its share price over the past year, most notably persistent soft top-line trends and ongoing challenges within its North America operations dating back to early 2024. The recent drop to a 52-week low also mirrors the company's more cautious outlook and the muted tone of its first-quarter 2025 earnings update.
Management highlighted rising global macroeconomic volatility, particularly concerning trade dynamics, as a key pressure point. This environment is expected to significantly increase supply-chain costs, driven by factors such as tariffs and difficulties in sourcing critical global inputs. Without successful cost containment, these pressures can erode margins and weigh on earnings throughout the year.
Adding to the uncertainty, consumer demand remains sluggish across many key markets. High inflation continues to constrain household spending, leading to more price-sensitive behavior and reduced discretionary spending, especially in categories like snacks. While PepsiCo has introduced more value-oriented offerings focused on flavor, functionality and portion control, consumer engagement has yet to fully rebound.
In response, the company is actively pursuing mitigation strategies aimed at controlling costs while maintaining operational stability and safeguarding customer relationships. Strategic initiatives include enhancing international expansion and revitalizing performance in North America through ongoing productivity programs rooted in automation, standardization and digital transformation.
Despite these efforts, PepsiCo has revised its full-year guidance. It expects core constant-currency EPS to be flat year over year, down from the previously mentioned mid-single-digit rise. Organic revenue are projected to rise in the low-single-digit range, reflecting the increasingly complex and constrained operating environment.