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PepsiCo vs. Coca-Cola: What's the Better Stock?
ZACKS· 2025-02-12 16:31
Core Viewpoint - The performance disparity between Coca-Cola (KO) and PepsiCo (PEP) has become evident, with KO outperforming PEP over the last year, raising questions about which stock is the better buy currently [2][4][17]. Company Performance - PepsiCo reported mixed results in its latest quarterly release, exceeding EPS estimates but falling short on sales expectations, with FY24 organic sales increasing by 2% year-over-year compared to 9.5% in 2023, and adjusted EPS of $8.16 rising by 9% [5][12]. - North America results for PepsiCo were soft, with Frito-Lay sales declining by 0.5% year-over-year, a significant slowdown from the previous year's 9% growth [6][18]. - The decline in Frito-Lay sales is attributed to a shift in consumer preferences towards dining out, with Quaker Foods North America experiencing a 14% decline in organic sales due to an oatmeal recall [7][18]. - Despite the challenges in North America, PepsiCo's international results were strong, with organic sales climbing by 6% in FY24 [9]. - Analysts have adopted a bearish outlook on PepsiCo following its results, resulting in a Zacks Rank 4 (Sell) due to concerns over North America's performance [11]. - Coca-Cola exceeded both EPS and sales expectations, reporting growth rates of 12% and 6% respectively, and gained market share in the nonalcoholic ready-to-drink beverage sector in North America [12][13]. - Coca-Cola's overall price/mix increased by 11% in FY24, with unit case volume growing by 1% year-over-year, benefiting from its lower exposure to the snacks market compared to PepsiCo [13][14]. - Coca-Cola also performed well internationally, gaining market share in regions such as Latin America, Europe, the Middle East, and Africa [14]. Valuation - Coca-Cola shares currently trade at a forward 12-month earnings multiple of 21.8X, representing a 27% premium over PepsiCo's 17.2X, marking the steepest premium in the past five years [15]. - EPS for PepsiCo is expected to increase by 2% in FY25, while Coca-Cola is forecasted to see a 6% increase [15]. Summary - The recent financial results of both companies highlight a stark contrast, with Coca-Cola showing positive growth and market share gains, while PepsiCo faces challenges in its North American segment and a bearish outlook from analysts [17][18].
Recurring Income: 2 Golden Opportunities At Multi-Year Lows
Seeking Alpha· 2025-02-11 13:00
Group 1 - iREIT+HOYA Capital focuses on income-producing asset classes that provide sustainable portfolio income, diversification, and inflation hedging [1] - The service offers a free two-week trial for potential investors to explore exclusive income-focused portfolios [1] Group 2 - The market is characterized as one where stocks are available at various price points, suggesting opportunities for patient investors [2] - The focus is on defensive stocks with a medium- to long-term investment horizon [2]
Investing in PepsiCo (PEP)? Don't Miss Assessing Its International Revenue Trends
ZACKS· 2025-02-10 15:21
Have you assessed how the international operations of PepsiCo (PEP) performed in the quarter ended December 2024? For this food and beverage company, possessing an expansive global footprint, parsing the trends of international revenues could be critical to gauge its financial resilience and growth prospects.In today's increasingly interconnected global economy, a company's ability to tap into international markets can be a pivotal factor in shaping its overall financial health and growth trajectory. For in ...
PepsiCo to Present at the Consumer Analyst Group of New York Conference
Prnewswire· 2025-02-10 13:00
PURCHASE, N.Y., Feb. 10, 2025 /PRNewswire/ -- PepsiCo, Inc. (NASDAQ: PEP) today announced that Ramon Laguarta, Chairman and Chief Executive Officer, and Jamie Caulfield, Executive Vice President and Chief Financial Officer, will present at the Consumer Analyst Group of New York (CAGNY) Conference on Wednesday, February 19, 2025 at approximately 9:00 a.m. ET.A live audio webcast and replay of the presentation will be accessible at the date and time noted above at www.pepsico.com in the "Investors" section un ...
PepsiCo: The One Headwind Everyone Keeps Overlooking (Rating Downgrade)
Seeking Alpha· 2025-02-10 11:22
With PepsiCo's (NASDAQ: PEP ) recent Q4 and full-year earnings now in the books, it's apparent the company continues and will likely continue to face headwinds, at least for the near to medium term.Contributing analyst to the iREIT+Hoya Capital investment group. The Dividend Collectuh is not a registered investment professional nor financial advisor and these articles should not be taken as financial advice. This is for educational purposes only and I encourage everyone to do their own due diligence. I'm a ...
3 Reasons Why This 4%-Yielding Dividend King Is the Ultimate Passive Income Powerhouse to Buy Now
The Motley Fool· 2025-02-09 10:14
PepsiCo (PEP -0.53%) stock fell 4.5% on Tuesday, putting it within just a couple of percentage points of a 52-week low.The food and beverage titan reported fairly weak full-year 2024 results. 2025 guidance calls for a prolonged slowdown across its business units, with a low single-digit increase in organic revenue and a mid-single-digit rise in core constant currency earnings per share (EPS).Despite the poor results and bleak outlook, here are three reasons why PepsiCo is a dividend stock worth buying now. ...
Could Buying PepsiCo Stock Today Set You Up for Life?
The Motley Fool· 2025-02-08 09:10
When searching for new stocks to invest in, dividend investors usually try to find a good compromise between income, income stability, and growth potential. There's no perfect investment that scores high on all three at once, so trade-offs have to be made. Right now, PepsiCo (PEP -0.53%) looks like it is offering investors a good combination of positives because it is facing some near-term negatives that seem likely to be temporary headwinds.Here's why buying PepsiCo today could help to set you up for a lif ...
PepsiCo Stock Up 1.3% on Q4 Results: Bullish Signal or Caution Ahead?
ZACKS· 2025-02-07 17:31
PepsiCo Inc. (PEP) has risen 1.3% since reporting fourth-quarter 2024 results on Feb. 4, 2025. This reflects an outperformance compared with its industry peers, the broader sector and the S&P 500 index. The Zacks Beverages – Soft Drinks industry and the Consumer Staples sector have grown 0.7% and 0.2% in the same period. Meanwhile, the S&P 500 has risen 0.02% since Feb. 4.The stock’s modest growth since its earnings release reflects mixed sentiments among investors following the release. PepsiCo exceeded th ...
Hovering Around a 4-Year Low, Is This High-Yield Dividend King Too Cheap to Ignore?
The Motley Fool· 2025-02-06 13:39
PepsiCo (PEP 1.51%) fell 4.5% on Tuesday after the beverage and snack giant reported fourth-quarter and full-year 2024 results.Pepsi also announced its 53rd consecutive dividend raise, pole-vaulting its forward dividend yield to 4%. Throw in a mere 20.6 price-to-earnings (P/E) ratio, and Pepsi is a unique Dividend King that combines a track record for dividend raises with a high yield and an inexpensive valuation.Here's what's driving the sell-off in Pepsi stock along with the actions management is taking t ...
Should You Pick PEP Stock At $145?
Forbes· 2025-02-05 15:52
GERMANY - 2024/12/20: In this photo illustration, Pepsi cans are displayed. (Photo Illustration by ... [+] Igor Golovniov/SOPA Images/LightRocket via Getty Images)SOPA Images/LightRocket via Getty ImagesPepsiCo (NYSE: PEP) recently released its Q4 results, with revenues missing and earnings exceeding the street estimates. The company reported revenue of $22.8 billion and adjusted earnings of $1.96 per share, compared to the consensus estimates of $27.9 billion and $1.94, respectively. The company continues ...