#1 - PepsiCo (NASDAQ:PEP)
PepsiCo Inc. (NASDAQ: PEP) has had seven downgrades and one Sell rating. PEP stock currently has a consensus Hold rating. More concerning for investors is that except for a spike in May 2023, the stock has been flat for the better part of the last two years.
The concern is about what the company can do to spur growth. Consumers have hit their limit in terms of their ability and willingness to accept price increases. Without that pricing power and with pressure to ensure they are not guilty of “shrinkflation,” you can see why analysts are concerned.
However, even the lowest price target is right around the stock’s current price. That means investors should be more concerned about the ceiling than the floor.
Even if that growth is delayed, the cost-cutting measures the company has taken ensure that the dividend is safe. That dividend currently yields 3.13%, and this dividend king has been increasing it at a three-year annualized growth rate of 7.12%, nearly three times the current pace of inflation.
About PepsiCo
PepsiCo, Inc engages in the manufacture, marketing, distribution, and sale of various beverages and convenient foods worldwide. The company operates through seven segments: Frito-Lay North America; Quaker Foods North America; PepsiCo Beverages North America; Latin America; Europe; Africa, Middle East and South Asia; and Asia Pacific, Australia and New Zealand and China Region.
Read More - Current Price
- $164.47
- Consensus Rating
- Hold
- Ratings Breakdown
- 5 Buy Ratings, 10 Hold Ratings, 1 Sell Ratings.
- Consensus Price Target
- $183.92 (11.8% Upside)
