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Pepsico (NASDAQ:PEP) stock reached a 52-week low, hitting $127.74, reflecting a challenging year for the beverage and snack giant. According to InvestingPro data, the company maintains impressive gross profit margins of 55% and has raised its dividend for 52 consecutive years, demonstrating underlying financial strength despite current market pressures. Over the past year, Pepsico’s stock has experienced a significant decline, with a 1-year change of -23.25%. This downturn highlights the hurdles the company has faced amid shifting consumer preferences and market conditions. The stock’s performance contrasts with its previous highs of $180.91, underscoring the volatility in the current economic landscape. With 13 analysts recently revising earnings expectations downward and the stock currently trading below its Fair Value, investors and analysts will be closely monitoring Pepsico’s strategic responses to these challenges as it aims to stabilize and potentially recover its market position. For comprehensive analysis of PEP and 1,400+ other stocks, including detailed Fair Value calculations and expert insights, explore InvestingPro’s exclusive research reports.
In other recent news, PepsiCo finalized the acquisition of the prebiotic soda brand poppi for $1.95 billion, signaling a strategic shift toward health-oriented products. This acquisition is part of PepsiCo’s broader strategy to diversify its portfolio with functional beverages and foods. In addition to this, PepsiCo announced a 5% increase in its quarterly dividend, raising it to $1.4225 per share, reflecting the company’s strong financial performance with nearly $92 billion in net revenue in 2024. However, Evercore ISI has lowered PepsiCo’s stock price target to $140, citing challenges in the Frito-Lay North America segment and a downward trend in financial guidance since 2024. TD Cowen also maintained a Hold rating on PepsiCo, focusing on a decline in Frito-Lay’s single-serve sales due to pricing strategies. Meanwhile, Eastman Chemical (NYSE:EMN) faced a setback with the loss of a $375 million Department of Energy grant for its Longview, Texas project. Despite this, Morgan Stanley (NYSE:MS) reiterated an Overweight rating on Eastman Chemical, with a price target of $115, indicating continued support for the company’s long-term plans. Eastman is expected to proceed with the project, albeit with a reduced scope, and aims to fulfill its rPET supply contract with PepsiCo through its Kingsport facility.
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