PepsiCo(US:PEP) ZACKS·2025-09-02 16:56Core Insights - PepsiCo Inc. has experienced a strong stock rally, with its price-to-earnings (P/E) multiple exceeding the industry average, reflecting increased investor confidence driven by robust revenue growth and recovery signs in North America [1][8] Valuation Metrics - PepsiCo's forward 12-month P/E multiple is 17.93X, slightly above the industry average of 17.75X, while its price-to-sales (P/S) ratio of 2.14X remains below the industry's 4.36X [2] - Compared to competitors, PepsiCo's P/E ratio is lower than Coca-Cola's 21.96X and Monster Beverage's 30.23X, but higher than Keurig Dr Pepper's 13.63X [3][4] Stock Performance - Over the past three months, PepsiCo's shares have increased by 12.8%, contrasting with a 3% decline in the broader industry and declines in competitors like Coca-Cola and Monster Beverage [5][8] - The current share price of $148.65 is 17.3% below its 52-week high of $179.73 and 16.5% above its 52-week low of $127.60, indicating bullish sentiment as it trades above its 50 and 200-day moving averages [9][10] Operational Strength - PepsiCo's recent stock momentum is supported by operational improvements, including organic revenue growth driven by international expansion and strong snack volumes [12][17] - The company is focusing on innovation and cost optimization through its "One North America" initiative, which aims to enhance profitability and competitiveness [15][22] Growth Outlook - The Zacks Consensus Estimate indicates a 1.3% year-over-year sales growth for 2025, with a projected decline of 1.8% in EPS, while 2026 estimates suggest 3.2% sales growth and 5.2% EPS growth [19] - Analysts have revised earnings estimates upward, reflecting growing confidence in PepsiCo's growth potential [18] Investment Consideration - PepsiCo's strategic initiatives and operational strengths position it well for sustained growth, making it an attractive option for long-term investors seeking stability with growth potential [22][23]