Is PepsiCo Stock Underperforming the S&P 500?

Core Insights - PepsiCo, Inc. (PEP) is a major player in the non-alcoholic beverage and convenient food industry, with a market capitalization of $198.9 billion, offering a diverse range of products under well-known brands [1][2] Company Overview - PEP is categorized as a large-cap stock, reflecting its significant size and influence in the market, particularly in the non-alcoholic beverage sector [2] - The company's strength is attributed to its extensive brand portfolio, which holds a substantial market share across various categories, supported by strong brand image and customer loyalty [2] - PepsiCo's integrated business model enhances operational efficiency and competitive positioning, allowing for effective management of commodity costs and productivity savings [2] Stock Performance - PEP's stock has experienced a decline of 11.5% from its 52-week high of $165.13, reached on November 27, 2024, and has underperformed the S&P 500 Index over the past three months [3][4] - Year-to-date, PEP shares have fallen by 3.9%, and over the past 52 weeks, they have decreased by 10.4%, contrasting with the S&P 500's gains of 15% and 13% respectively [4] Recent Financial Results - On October 9, PEP reported Q3 results, with an adjusted EPS of $2.29, surpassing Wall Street's expectation of $2.27, and revenue of $23.94 billion, exceeding forecasts of $23.88 billion [5] - Despite these positive results, Coca-Cola Company (KO) has outperformed PEP, achieving a year-to-date gain of 16.6% and a 12.8% increase over the past 52 weeks [5] Analyst Sentiment - Wall Street analysts maintain a moderately bullish outlook on PEP, with a consensus "Moderate Buy" rating from 21 analysts and a mean price target of $156.05, indicating a potential upside of 6.8% from current levels [6]