Should I buy PepsiCo stock in 2025?

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At HelloSafe, our expert has been monitoring PepsiCo’s performance for over three years. Each month, hundreds of thousands of users in the United States rely on us to interpret market movements and highlight the best investment opportunities. Our reports are intended solely for informational purposes and do not represent investment advice. In line with our ethical commitments, we have never received, and will never receive, any compensation from PepsiCo.

What is PepsiCo?

How much is PepsiCo stock?

The price of PepsiCo stock is rising this week. As of today, PepsiCo (PEP) shares are trading at $133.60, showing a positive 0.17% change over the past 24 hours, while recording a weekly decline.

The company holds a market capitalization of $183.11 billion, with an average 3-month trading volume of 8.04 million shares.

A stock beta of 0.50 points to relatively low volatility compared to the market.

Investors should note that, despite short-term pressure, PepsiCo’s strong dividend record and defensive profile may make it appealing for those seeking stability.

Our full analysis on PepsiCo stock

After a rigorous review of PepsiCo’s latest financial disclosures and careful analysis of its stock trajectory over the past three years, our proprietary modeling has drawn powerful insights by synthesizing financial metrics, technical signals, market data, and competitor trends. In the context of a shifting consumer staples landscape, PepsiCo’s recent market evolution and robust fundamentals merit close attention. So, why might PepsiCo stock once again become a strategic entry point into the blue-chip staples sector in 2025?

Recent Performance and Market Context

PepsiCo (NASDAQ: PEP) – a paragon of the consumer staples sector – currently trades at $133.60 per share, framing its $183 billion market capitalization. Notably, the stock sits close to its 52-week low, after a downtrend that saw a 24.18% decline year-over-year, contrasting with major indices like the S&P 500, which advanced 9.29% over the same period. This divergence places PepsiCo in a unique position within the market cycle.

Several positive undercurrents deserve attention despite recent headwinds:

• The company has announced its 53rd consecutive annual dividend increase, now offering an attractive forward yield of 4.06%, reinforcing investor confidence in management’s commitment to capital returns.
• PepsiCo’s defensive nature, as evidenced by a remarkably low 5-year beta of 0.50, suggests resilience amid periods of economic inertia or volatility.
• While the global consumer landscape remains challenged and supply chain costs have weighed on short-term margins, PepsiCo’s diversified product mix and entrenched international operations provide a natural buffer and set the groundwork for cyclical recovery.

In a sector characterized by stability and cash flow generation, PepsiCo’s current position against its historical lows suggests potential for tactical entry—especially as macroeconomic factors begin to turn more favorable for staple brands with pricing power and scale.

Technical Analysis

Despite its short-term underperformance, PepsiCo’s technical indicators yield constructive signals for medium-term investors seeking favorable risk-reward positioning:

• Relative Strength Index (RSI): At 34.78, PEP is nearing oversold territory—a technical zone from which blue-chip consumer stocks often demonstrate sharp reversals.
• MACD (12,26,9): The current reading of -3.63 confirms recent bearish momentum, yet also serves as a classic setup for a medium-term bullish crossover, particularly as market participants digest forward guidance.
• Key Moving Averages:
• 20-Day SMA: $141.07
• 50-Day SMA: $146.95
• 100-Day SMA: $148.46
• 200-Day SMA: $159.48

With PEP trading well below all its major moving averages, the risk/reward dynamics become unusually compelling for investors with even modest risk appetite. The principal support zone lies between $126 and $131, which could serve as a technical “floor,” while resistance materializes in the $149 to $155 range. Historically, such conditions, especially combined with an oversold RSI, have signaled the early stages of prolonged bullish recoveries in consumer staples giants.

Fundamental Analysis

PepsiCo’s enduring financial strength anchors its long-term attractiveness:

• Revenue and Earnings Resilience: Q1 2025 revenue reached $17.92 billion with organic revenue growth of 1.2%, highlighting the company’s ability to grow core operations even in turbulent demand contexts.
• Profitability Metrics: Profit margin at 10.24% and operating margin of 15.82% underscore operational efficiency, while return metrics (ROA 8.86%, ROE 49.93%) illustrate effective capital stewardship.
• Valuations: The stock’s forward P/E of 16.72 and a P/S of 2.01 position it attractively both versus historical averages and relative to sector peers. The PEG ratio of 2.36 remains within a justifiable range for a company of PepsiCo’s scale and growth profile, especially considering elevated income and predictable cash flows.
• Dividend Record: The 53rd consecutive annual increase in dividends (forward annualized at $5.42 per share) is not only unmatched in the industry but also cements PEP as a fixture for income-oriented investors.

Strategically, PepsiCo’s embrace of productivity initiatives, combined with a relentless global expansion, powers its ability to invest in commercial innovation—all while steadily improving profitability. Its diversified, market-leading portfolio (from beverages to snacks) positions the company to capture incremental value across global markets.

Volume and Liquidity

Liquidity remains a core asset for PepsiCo:

• Average 3-Month Trading Volume: 8.04 million shares, indicating robust daily liquidity and tight bid/ask spreads.
• Float: At 1.37 billion shares, the stock’s ample float supports dynamic valuation, allowing institutional holders (79.08% ownership) and retail participants alike to transact efficiently without major price disruptions.

Sustained volume at current levels, even through corrective phases, signals institutional confidence and underpins the stock’s capacity for rapid valuation recalibration once sentiment shifts.

Catalysts and Positive Outlook

Several imminent and structural catalysts outline a notably positive forward view:

• Product and Market Innovation:
• New launches and refreshes across beverage and snack lines, tailored to emerging consumer trends (wellness, convenience, premiumization), are set to underpin future revenue growth.
• Ongoing expansion into international and emerging markets remains a core avenue for organic and inorganic growth.
• Operational Excellence:
• Multi-year productivity initiatives continue to unlock cost efficiencies and fund targeted investments in digitalization, supply chain resilience, and brand building.
• PepsiCo’s strong commitment to ESG (environmental, social, governance) standards further enhances its appeal to a growing base of responsible investors.
• Dividend Growth and Income Visibility:
• The June 2025 dividend increase marks over five decades of uninterrupted growth—a rare feat likely to draw renewed interest from institutional funds seeking stability and reliable returns.
• Broader Sector Tailwinds:
• Defensive consumer staples companies historically outperform in uncertain macroeconomic environments, as defensive earnings profiles, scale, and global reach become increasingly valuable.

Looking to the broader market context, moderation in global supply chain pressures, potential stabilization of foreign exchange headwinds, and ongoing fiscal resilience in core markets could all serve as upside catalysts for margin and earnings recovery into late 2025 and beyond.

Investment Strategies

Depending on one’s time horizon and risk profile, PepsiCo offers compelling entry points:

• Short-Term: The stock’s convergence toward technical support with an oversold RSI suggests a potential mean-reverting bounce. Traders may consider positioning for a recovery toward the first resistance band in the $149–$155 region.
• Medium-Term: Investors seeking steady yield and capital appreciation may find this period’s discounted valuation unusually attractive, especially as market sentiment realigns with underlying company fundamentals and as productivity initiatives begin materializing in improved earnings.
• Long-Term: For those prioritizing income growth, capital preservation, and exposure to a resilient multi-national portfolio, PepsiCo’s protracted track record of dividend increases and cash flow generation lays a robust foundation for portfolio anchoring. Since the stock remains near a cyclical low, long-term capital deployment ahead of upcoming catalysts (notably, emerging market expansion and ESG-driven inflows) seems particularly well-timed.

In all scenarios, the technical alignment—trading near support with defensive valuation metrics and resilient fundamentals—favors entry ahead of anticipated strategic and macroeconomic tailwinds.

Is it the Right Time to Buy PepsiCo?

PepsiCo stands today at the crossroads of value, yield, and cyclical opportunity. A confluence of factors—historically high and growing dividends, a rare discount to broader market valuation, world-class brands, and defensive operating performance—are converging as the stock hovers at multi-year support levels. The current underperformance relative to the S&P 500 opens a compelling window for re-rating, especially for investors seeking stability, reliable income, and global consumer exposure.

Institutional conviction remains high, reflected in robust ownership and trading liquidity, while the enduring brand legacy and ongoing strategic execution point to renewed growth potential as macro conditions begin to stabilize. As technical momentum reverses and margins recover, PepsiCo’s fundamentals suggest the stock is entering a promising bullish phase.

For investors seeking a combination of resilience, yield, and blue-chip stability at an attractive entry point relative to historical precedent, PepsiCo seems to represent an excellent opportunity to participate in the next phase of upside for the global consumer staples sector. With key catalysts on the horizon and robust fundamentals in place, the case for serious consideration has rarely been stronger.

How to buy PepsiCo stock in United States?

Buying PepsiCo (PEP) stock online is a straightforward and secure process when you choose a regulated U.S. broker. Modern online brokers offer two main ways to invest: direct or “spot” share purchases, and trading using Contracts for Difference (CFDs). Spot buying means you become a shareholder, while CFDs are trading instruments for those seeking exposure without owning the stock. Both methods can be accessed via intuitive online platforms, making it easy to start investing from home. Before opening an account, it’s essential to review a broker comparison to find one that best fits your needs—see further down this page for details.

Spot Buying

Buying PepsiCo shares “for cash” means you purchase real shares and become a partial company owner, entitled to dividends and voting rights. U.S. brokers often charge a modest fixed commission per trade—typically $0 to $6.

Important example

For example, if PepsiCo’s share price is $133.60, with a $1,000 investment (and a $5 brokerage fee), you can purchase approximately 7 shares of PepsiCo ($133.60 × 7 = $935.20 + $5 fee ≈ $940.20). Any remaining cash stays in your account.

✔️ Gain scenario: If the stock rises by 10%, your shares are now worth $1,100.
Result: +$100 gross gain, which equals +10% on your initial investment.

Trading via CFD

CFDs (Contracts for Difference) allow you to trade on PepsiCo’s price movements without owning the underlying shares. Instead, you speculate on whether PEP’s price will rise or fall, using leverage to amplify both potential gains and risks. CFD trading involves costs such as the spread (the difference between buying and selling price) and overnight financing fees if you keep positions open more than a day.

Important example

For example, with a $1,000 deposit and 5x leverage, you control a position worth $5,000 in PepsiCo stock.

✔️ Gain scenario: If the stock rises by 8%, your position gains 8% × 5 = 40%.
Result: +$400 gain on your $1,000 investment (before fees).

Final Advice

Before buying PepsiCo shares or trading CFDs, it’s important to carefully compare brokers’ fees, trading conditions, and account types. The best method depends on your goals: spot buying for long-term investment and dividends, CFDs for short-term trading with leverage. Take your time to consult the broker comparison provided further down this page to make the choice that fits your investment strategy and risk profile.

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Is eToro reliable?

Yes, eToro is a reliable platform, regulated by leading authorities, including the AMF in France, as well as the FCA (UK), ASIC (Australia) and CySEC in Europe. With over 30 million users worldwide, eToro is widely recognized for its security and transparency. Based on our analysis, this broker is among the most reliable in the market, and we have not found any complaints regarding the security of funds.

Why choose eToro?

With eToro, you don’t need to be an expert to get started. Its intuitive interface and unique tool, the CopyTrader, allow you to copy the best traders to learn while investing.
You have access to thousands of assets, such as stocks, cryptos, Forex and commodities, all with an active community for exchanging ideas: eToro makes investing simple, interactive and educational. It's a bit like the Spotify of investing.

What are the fees at eToro?

eToro is transparent about its fees: no commission on the purchase of stocks or ETFs. Spreads vary depending on the asset, but remain very affordable.
Deposits are free, and withdrawals are set at $5. In the event that you remain inactive for 12 months or more, a $10 monthly fee applies.
Finally, the fees charged are also clearly stated on its website (we can't say the same about all competitors).

Who is eToro for?

eToro is mainly for beginners and intermediates, thanks to its simplicity and educational approach. If you want to diversify your portfolio or learn by observing the best traders, this platform is ideal.
Investors looking for a modern and intuitive experience will also find their account here with a key argument: a real variety of assets (stocks, cryptocurrencies, ETFs).

Is it easy to withdraw your money from eToro?

Yes, withdrawing your winnings from eToro is as easy as investing. With options like PayPal, bank transfer or credit card, eToro processes your requests within 1 to 3 business days.
The platform guarantees transparency of fees, and the procedure is explained step-by-step, ensuring you have permanent access to your funds. After analyzing thousands of customer cases, no such problem has been identified.

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Is IG reliable?

IG is a trustworthy trading platform, regulated by top authorities such as the CFTC and NFA in the United States, ensuring your funds are secure. It has strong measures in place to protect users and guarantees complete transparency. Thousands of clients worldwide vouch for its reliability and security.

Why choose IG?

IG stands out with its user-friendly interface, making it perfect for beginners. It offers unique tools like IG Academy and ProRealTime for learning and market analysis. The platform provides access to a wide range of assets, including stocks, ETFs, and cryptocurrencies, along with a strong community for trading discussions.

What are the fees at IG?

IG offers competitive spreads with no commissions on buying stocks or ETFs. Withdrawal fees are transparent, and inactivity fees apply after one year without activity. The platform maintains a clear pricing structure, allowing users to easily understand all costs related to their transactions.

Who is IG for?

IG is perfect for beginner and intermediate traders due to its simple interface and educational resources. It also caters to experienced investors with advanced trading tools. Users have access to a wide variety of assets like stocks, cryptocurrencies, and ETFs, making it suitable for diversifying portfolios.

Is it easy to withdraw money from IG?

Withdrawing funds from IG is quick and straightforward, offering options such as PayPal, bank transfer, or credit card. Processing times are usually 1 to 3 business days. IG ensures a transparent withdrawal process, and many users appreciate the clarity of withdrawal fees, providing a hassle-free experience.

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Is AvaTrade reliable?

AvaTrade is a trusted broker, regulated by major institutions, starting with the AMF in France, but also the Central Bank of Ireland, ASIC (Australia) and the FSA (Japan). Active since 2006, it offers solid guarantees, including the separation of client funds and strict compliance with international standards. With over 300,000 active users, it inspires confidence in both novice and experienced traders.

Why choose AvaTrade?

AvaTrade combines simplicity and expertise. Tutorials, demo accounts and free training help you learn at your own pace. Advanced tools like MT4/MT5 offer endless possibilities once you progress. You don't need to be an expert: AvaTrade adapts to you.

What are the fees at AvaTrade?

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Who is AvaTrade for?

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Our 7 tips for buying PepsiCo stock

The latest news about PepsiCo

PepsiCo has confirmed its 53rd consecutive annual dividend increase, reinforcing its reputation for dividend reliability. The announcement of a higher dividend payout for June 2025 positions PepsiCo as a steadfast choice for income-focused U.S. investors, particularly given the current forward dividend yield of 4.06%. This commitment comes despite industry-wide pressures, demonstrating a strong cash flow base and long-term confidence from company leadership.

The company maintained its full-year 2025 guidance for organic revenue growth, despite macroeconomic and foreign exchange headwinds. During its Q1 2025 report on April 24th, PepsiCo reiterated its outlook for low-single-digit organic revenue growth and resilient operating performance, even though it slightly revised its core constant currency EPS forecast downward. This underscores management's expectation for stable core business fundamentals, further underpinning support and confidence for long-term shareholders amid broader market volatility.

Technical indicators signal a near-term oversold condition, offering potential entry points for contrarian investors. With a Relative Strength Index (RSI 14) of 34.78 and the share price trading below all key moving averages—including the 20, 50, 100, and 200-day SMAs—the stock is approaching oversold territory. While the technical outlook remains bearish, these levels may attract value-oriented investors seeking exposure to a high-quality U.S. consumer staples name with a strong yield, as the $126–$131 range emerges as a key support area.

PepsiCo's Q1 results affirmed continued operational resilience, driven by a robust brand portfolio and U.S. market leadership. Despite a 1.81% year-over-year decline in reported revenue, the company achieved 1.2% organic revenue growth and maintained strong profitability metrics, reporting a net income of $1.83 billion. The defensive, non-cyclical nature of PepsiCo’s core snack and beverage products supports consistent demand from U.S. consumers, helping mitigate the impact of cost pressures and broader economic uncertainty.

Institutional investors continue to demonstrate strong confidence, with U.S. institutional ownership above 79%. This high level of institutional participation reflects enduring trust in PepsiCo's management, balance sheet strength, and brand equity. Such sustained backing by institutional actors is often interpreted as a positive vote of confidence, reinforcing the stock’s appeal among professional market participants in the United States.

FAQ

P. Laurore

Finance expert

Co-founder of HelloSafe and holder of a Master's degree in finance, Pauline has recognised expertise in personal finance, which she uses to help users better understand and optimise their financial choices. At HelloSafe, Pauline plays a key role in designing clear, educational content on savings, investments and personal finance. Passionate about financial education, Pauline strives, with every piece of content she oversees, to provide reliable, transparent and unbiased information for independent and informed financial management. To this end, she has tested over 100 trading platforms to help internet users make the right choices.