PepsiCo stock hits 52-week low at $127.87 amid market shifts

In a challenging market environment, PepsiCo, Inc. (NASDAQ:PEP) has seen its stock price touch a 52-week low, dipping to $127.87. According to InvestingPro data, the company maintains impressive gross profit margins of 55% and has raised its dividend for 52 consecutive years, demonstrating resilience despite market pressures. The soft drink and snack giant has not been immune to the pressures facing consumer goods companies, as shifting consumer habits and economic headwinds have taken a toll on its share value. Over the past year, PepsiCo’s stock has experienced a significant downturn, with a 1-year change showing a decline of nearly 28%. Investors are closely monitoring the company’s strategies to navigate these challenges and stimulate growth in a competitive landscape. With 13 analysts recently revising earnings estimates downward and the stock currently trading below its Fair Value, investors seeking deeper insights can access comprehensive analysis through InvestingPro’s detailed research reports, which cover over 1,400 top US stocks.

In other recent news, PepsiCo has finalized its acquisition of the prebiotic soda brand poppi for $1.95 billion. This strategic move aligns with PepsiCo’s focus on expanding its portfolio with health-conscious products. PepsiCo also announced a 5% increase in its quarterly dividend, raising it to $1.4225 per share, reflecting the company’s commitment to delivering shareholder value. Despite these positive developments, PepsiCo’s first-quarter 2025 earnings report showed a slight miss in earnings per share, which came in at $1.48, below the forecast of $1.51, though revenue exceeded expectations at $17.92 billion.

Additionally, Evercore ISI downgraded PepsiCo’s stock price target from $155 to $140, maintaining an In Line rating. This adjustment is attributed to challenges in the Frito-Lay North America segment and overall consumer pressures affecting demand. PepsiCo has adjusted its full-year guidance due to new tariffs and macroeconomic uncertainties, with a focus on maintaining low single-digit revenue growth. The company remains optimistic about its international markets, which are expected to drive growth and profitability.

These recent developments highlight PepsiCo’s ongoing strategic adjustments and financial performance amid a challenging economic environment.

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