This way, it doesn't become too highly priced and too rich for some investors to buy, like Google Inc.'s (GOOG) recent close price of $831.52. The successful rollout of the vaccination program and stimulus measures have led to expectations of faster economic recovery and rise in consumer spending. Pessimistic: $193.52. This does not always happen, however, often depending on the underlying fundamentals of the business. This happens once a day. PepsiCo 's ( PEP 0.04%) stock popped 4% on Oct. 12, after the company released its third-quarter earnings report. Yet again, PepsiCo, Inc. ( NASDAQ: PEP ), a global food and beverage company, could mirror its rival, The Coca-Cola Company's ( KO) recent stock split. 2 min read PepsiCo's ( PEP) second quarter earnings release is going down easy for investors. See How Its Powering New Collaboration and What-Ifs ForCFOs and Finance Teams |Product, R&D, and Marketing Teams, This is a BETA experience. If you do not want us and our partners to use cookies and personal data for these additional purposes, click 'Reject all'. Read more. 2.41%. stock price in 2023, 2024, 2025, 2026, 2027. Do Not Sell My Personal Information (CA Residents Only). The average return after a rise is generally lower than after a fall as detailed in the previous question. In comparison, the S&P 500 has an average return of 3.1% over the next 21 trading days under Case 1, and an average return of just 0.5% for Case 2 as detailed in our dashboard that details the average return for the S&P 500 after a fall or rise. We have provided a few examples below that you can copy and paste to your site: Your image export is now complete. Are you interested in PepsiCo, Inc. stocks and want to buy them, or are they already in your portfolio? To ensure this doesnt happen in the future, please enable Javascript and cookies in your browser. Become a Motley Fool member today to get instant access to our top analyst recommendations, in-depth research, investing resources, and more. The next scheduled payment will be on 03/31/2023. Includes date and ratio. Please. Before following the crowd into PepsiCo, consider these three reasons why the stock could be a disappointment at the moment. To make the world smarter, happier, and richer. You'll now be able to see real-time price and activity for your symbols on the My Quotes of Nasdaq.com. It also launched a new juice product line (Frutly) for its young consumer base. The good news is that Pepsi is targeting another year of market-thumping growth, with organic sales rising in the mid-single digits in 2021. The stock is expensive, and investors need to justify this higher valuation against the possibility of slowing growth and a weaker balance sheet. $4.60. PEP is currently trading around $141 per share, just a few dollars below its all-time high, but given how overheated the market has been in anticipation of the post-pandemic recovery, investors should not expect massive gains in the coming year. PURCHASE, N.Y., Feb. 4, 2021 /PRNewswire/ -- The Board of Directors of PepsiCo, Inc. (NASDAQ: PEP) today declared a quarterly dividend of $1.0225 per share of PepsiCo common stock, a 7 percent . Below, we examine the compound annual growth rate CAGR for short of an investment into PepsiCo shares, starting with a $10,000 purchase of PEP, presented on a split-history-adjusted basis factoring in the complete PepsiCo stock split history. PEP stock fares better after Case 1, with an average return of 4.1% over the next month (21 trading days) under Case 1 (where the stock has just suffered a 5% loss over the previous week), versus, an average return of 0.5% for Case 2. (Photo Illustration by Pavlo Gonchar/SOPA Images/LightRocket via Getty Images). I have no business relationship with any company whose stock is mentioned in this article. The chart below shows the historical price of PepsiCo stock and a prediction chart for the next month. If that increased demand causes the share price to appreciate, then the total market capitalization rises post-split. With a deep economic moat, high margins . Ratings. This trading strategy invovles purchasing a stock just before the ex-dividend date in order to collect the dividend and then selling after the stock price has recovered. Pepsi and Coke compete on many levels; in Super Bowl ads, in the grocery aisle and in sporting venues. Also, the stock has gained almost 40% from the low of $105 seen in March 2020 and we believe that this rise is justified. Please disable your ad-blocker and refresh. Learn More. (See PepsiCo Stock analysis on TipRanks), Bottom Line: A Top Shelf Stock For Long-Term Investors. For PepsiCo stocks, the 50-day moving average is the support level today. TipRanks' multi-award winning platform ranks financial experts based on measured performance and the accuracy of their predictions so investors know who to trust when making investment decisions. When you factor in its $241 billion market cap, the ability to generate big increases year to year becomes more difficult the bigger PepsiCo gets. Stock Information Shareholder Services Get the latest investor news from PepsiCo. This was a 3 for 1 split, meaning for each share of PEP owned pre-split, the shareholder now owned 3 shares. Copy and paste multiple symbols separated by spaces. With investors becoming skittish about tech stock valuations, the NASDAQ 100 (QQQ) index fell sharply in February and early March. The company has an extended history of paying stable dividends. Watch Yahoo Finances live programming on Verizon FIOS channel 604, Apple TV, Amazon Fire TV, Roku, Samsung TV, Pluto TV, and YouTube. The stock's valuation has become expensive. PEPs total debt increased from $39.3 billion in 2017 to $44.1 billion at the end of 2020, while its total cash decreased from $19.5 billion to $9.7 billion over the same period. Meta Platforms Stock Is Trading Close To Its Fair Value, 12/12/2019: Coronavirus cases first reported in China. Dividend yield is a ratio that shows how much a company pays in dividends each year at the stock price. and Weighted Average Best Forecast. Pepsi is still planning to increase its dividend payment (for a 49th consecutive year), but stock repurchase spending will plunge to almost zero after reaching $3 billion in 2019 and dipping to $2 billion last year. I have worked for 11+ years as a financial analyst for a company in Seattle, Wa. I also believe that given the data in this article, a stock split could be announced at any time. PepsiCo and S&P 500 Performance During 2007-08 Crisis. Pepsi's broader 2020 growth landed at 4.3%, or more than double Hershey's (HSY 1.07%) expansion pace and far above Coke's 9% slump. Spillane rates PepsiCo's stock at a Buy with a $165 price target. Forward P/E uses projections of future earnings instead of final numbers. Pessimistic: $202.43. Since 2011, the dividend has gone from US$1.92 to . The company boasts high profit margins and deep economic resources. For example, a 5: 1 ratio means that the value of one share will decrease 5 times, the total amount will increase 5 times. Pessimistic: $205.08. When a company such as PepsiCo splits its shares, the market capitalization before and after the split takes place remains stable, meaning the shareholder now owns more shares but each are valued at a lower price per share. Justin Pope has no position in any of the stocks mentioned. Pessimistic: $177.63. In PepsiCo's case, does the stock deserve this higher valuation? (adsbygoogle = window.adsbygoogle || []).push({}); Looking at the PepsiCo stock split history from start to finish, an original position size of 1000 shares would have turned into 54000 today. If you use our datasets on your site or blog, we ask that you provide attribution via a "dofollow" link back to this page. It uses the current share price and divides it by the total earnings per share for the last 12 months. Positive dynamics for PepsiCo shares will prevail with possible volatility of 2.267%.Pessimistic target level: 194.04Optimistic target level: 198.54, Forecast target price for 05-04-2023: $200.08. The Motley Fool has no position in any of the stocks mentioned. To make the world smarter, happier, and richer. Please see the "Historical Prices" tab for adjusted price values. If you buy and hold PepsiCo stock, the expectation is over time the near term fluctuations will cancel out, and the long-term positive trend will favor you - at least if the company is otherwise strong. Optimistic: $221.48, An uptrend is forecast for this month with an optimal target price of $217.975. The Motley Fool has no position in any of the stocks mentioned. Invest better with The Motley Fool. improve its sales and margins. (Photo Illustration by Pavlo Gonchar/SOPA Images/LightRocket via Getty Images), Restaurant Brands Stock To Likely See Little Movement Post Q1, Three Essential Survival Tips If You Are Investing In Bonds, The Fed And Apple Highlight A Busy Week Ahead, JPMorgan Stock Up 5% After Buying First Republic From FDIC. Create your Watchlist to save your favorite quotes on Nasdaq.com. This Stock Could Help You Do That, Why I Refuse to Chase the Maximum Social Security Benefit, U.S. Money Supply Is Doing Something It Hasn't Done in 90 Years, and It May Signal a Big Move for Stocks, These 2 Banks Are Pulling the Nasdaq Down, Social Security Cuts May Be Coming. The company's balance sheet has slowly taken on water over the past 10 years. The Motley Fool has a disclosure policy. As soon as information becomes available, we will immediately update the data. Data by YCharts. Market capitalization is the total market value of all issued shares of a company. Does PEP Have Sufficient Cash Cushion To Meet Its Obligations Through The Coronavirus Crisis? : PEP) trades at $144 currently and is up 5% from its level at the beginning of 2020. PepsiCo isn't a software company that can rapidly acquire customers or a smartphone company that sells many big-ticket items. However, the stock is still down compared to the levels seen before the pandemic. Sales rose by 6% each in the Frito Lay North America and Asia Pacific divisions. Pepsi is also predicting that core earnings will rise at the same pace as sales, effectively ending a two-year slide in operating profit margin. The stock's fundamentals can justify the high valuation and eventually generate the growth or higher profits needed to bring the valuation back to the norm, or the valuation eventually goes back down as investors lose interest in a stock under-performing. For starters, PEP remains a high-quality stock with a stable full of global food and beverage brands through its PepsiCo Beverage, Frito-Lay, and Quaker Foods divisions. 3 Reasons to Buy This Dividend King. PepsiCo stock (NASDAQ: PEP) has increased more than 9% in the last one month and it now trades at $141 per share. E-commerce is eating into retail sales, but this might be an investment opportunity. When you look at the table below, it's interesting how both Pepsi and Coke have made similar stock splits so closely together. After recovering from the recent NASDAQ correction, PepsiCo shares are approaching prior all-time highs. Prices shown are actual historical values and are not adjusted for either splits or dividends. Analyst Comments; . PepsiCo, Inc. (PEP) Stock Historical Prices & Data - Yahoo Finance U.S. markets open in 7 hours 19 minutes PepsiCo, Inc. (PEP) NasdaqGS - NasdaqGS Real Time Price. This may be a reason that the stock is currently trading near a 52-week high of $77.20. PepsiCo is a blue-chip stock, but investors should be cognizant of the headwinds that are developing for the company. PepsiCo stock (NASDAQ Disclaimer: The information contained herein is for informational purposes only. PEP stock traded at $146 in February 2020 (just before the outbreak of the coronavirus pandemic) and is still 1% below that level. What are analysts' forecasts for PepsiCo stock? Type a symbol or company name. PHG Split History So it shouldn't surprise anyone that they also compete against each other financially and for shareholders with stock prices, dividends and even stock splits. The all-time high PepsiCo stock closing price was 189.71 on April 25, 2023. *Stock Advisor returns as of February 24, 2021. . Notably, though, the stock is likely to underperform the S&P500 over the next month, with an expected return which would be 3% lower compared than the S&P500. Under these programs, the company expects to return a total of $6.4 billion to shareholders in 2013 through dividends of approximately $3.4 billion, and share repurchases of. At the same time, flat sales volumes in the beverage unit kept Pepsi ahead of Coca-Cola (KO 0.73%), which posted a 3% decline earlier in the week. Management reported net sales of $19.2 billion - a rise of 20.5% YOY - thanks to returning demand for drinks . With PepsiCo having benefited from the at-home consumption trend, it has recently introduced the Neon Zebra part of the non-alcoholic cocktail mixer category in four different flavors, to capitalize on the pick-up in the at-home cocktail making trend. Now, as it climbs back up towards all-time highs, where is the stock heading from here? Some Fun Scenarios, FAQs & Making Sense of PEP Stock Movements: Question 1: Is the average return for PepsiCo stock higher after a drop? But is it the safest place to invest today? Apr 5, 2021 04:05AM EDT. What is the future of PepsiCo stock? A tighter balance sheet could result in lower dividend raises, fewer buybacks, and fewer acquisitions. I believe Pepsi is a great growth stock that should continue to see dividend increases for years to come (see dividend chart above). By looking at the chart above, you will notice that Pepsi's stock price is in the price range just before previous stock splits were made; $69.12 in 1977, $98.25 in 1986, $74.50 in 1990 and $66.38 in 1996. Coke is looking for a bigger pandemic rebound, meanwhile, after sales fell 11% last year. Pepsi, like many other companies, likes to keep its stock price in a range for the majority of investors. PepsiCo Announces Timing and Availability of First Quarter 2023 Financial Results. I also enjoy sharing my thoughts and information to try and help others as well. The successful rollout of the vaccination program and stimulus measures set to be announced have led to expectations of faster economic recovery and rise in consumer spending. Looking for underrated or undervalued dividend and growth stocks to add to my portfolio in order to increase my monthly and quarterly dividend income! The results were better than management had predicted and nearly matched 2019's soaring sales gains. If you would like to customise your choices, click 'Manage privacy settings'. Forecast target price for 05-03-2023: $197.36. For example, a 1000 share position pre-split, became a 3000 share position following the split. PepsiCo, Inc. was formed from the merger of Pepsi-Cola and Frito-Lay in 1965. Positive dynamics for PepsiCo shares will prevail with possible volatility of 1.666%.Pessimistic target level: 199.47Optimistic target level: 202.85, Forecast target price for 05-06-2023: $199.05. "PepsiCo enters FY21 from a strong position and is well equipped to outperform in a post COVID-19 environment," Bank of America analyst Bryan Spillane said in a note ahead of the results. If you're aiming for strong investment returns, you might want to reconsider investing in PepsiCo. What also comes out of the analysis is that patient investors will benefit, as the stock provides double-digit returns to ones who wait it out for a year. It's a massive and mature business likely to grow modestly in the future. Here's what you need to know from the beverage and snack giant's latest results. Produces such products as various soft drinks, chips and other snacks, baby food and others. You can test the answer and many other combinations on the Trefis Machine Learning to test PEP stock chances of a rise after a fall and vice versa. 2 Dividend Stocks That Will Pay You for Life, Want to Retire Early? Yielding 2.87% at current prices, the dividend has grown an average of 7.8% over the past five years. Optimistic: $216.01, An uptrend is forecast for this month with an optimal target price of $212.368. Did Pepsi Just Become a More Attractive Dividend Stock to Buy? As the drink began to gain in popularity, the pharmacist created the Pepsi-Cola Company in 1902 and filed a patent for his recipe in 1903. The recent double-digit sell-off in PEP stock was a consequence of the correction seen across the NASDAQ. As a sweetener for investors, PepsiCo took the wraps off a new $1 billion cost-cutting plan that will be run through 2026. Invest better with The Motley Fool. We have provided a few examples below that you can copy and paste to your site: Your data export is now complete. $4.60-Overview - PEP. Matching strong 2021. How much will one PepsiCo share be worth in According to TipRanks, PEP comes in as a Moderate Buy based on 4 Buy, 3 Hold and 1 Sell recommendations. Making the world smarter, happier, and richer. If You Do This, You Won't Have to Worry About Them, Join Over Half a Million Premium Members And Get More In-Depth Stock Guidance and Research, Motley Fool Issues Rare All In Buy Alert, bought energy drink brand Rockstar for $3.85 billion in 2020), EBITDA (earnings before interest, taxes, depreciation, and amortization), Copyright, Trademark and Patent Information. "Mad Money" host Jim Cramer said in early January that . as a result of using the information contained on the site. EBITDA is earnings before interest, income tax and depreciation of assets. Total revenue rose 20.5% from a year ago, powered by strong double-digit sales gains in PepsiCo's North America beverage, Latin America, EU and Africa businesses. If the date of the next dividend payment has not been updated, it means that the issuer has not yet announced the exact payment. Its ratio of debt to EBITDA (earnings before interest, taxes, depreciation, and amortization), which compares its debt to its profits before noncash adjustments, has risen from less than 2.4 to 3.0. Also, when forecasting, technical analysis tools are used, world geopolitical and news factors are taken into account. All forecast data on the site are provided for informational purposes of using neural forecasting tools in the financial market and are not a call to action and, Former Bridgewater Associates co-CEO: CEOs should shape up on ESG, or ship out, AMD CEO: the semiconductor shortage will take time to correct, Kansas City Chiefs phenom Patrick Mahomes: I am trying to build a business empire, Foot Locker CEO: this is what our future holds, Intel CEO: here is when the chip shortage may end, Coca-Cola CEO: our business is rounding the corner from the pandemic. This article isn't here to make the case that PepsiCo is a bad company or a horrible investment. When should I take profit in PepsiCo stock? The company sells some of the most popular food and drink brands in the world. Opinions expressed by Forbes Contributors are their own. We're seeing a rebound year after lockdowns impacted the business in 2020, but that doesn't change PepsiCo into a growth stock. Given that the past year has been about the recovery from the pandemic-led market crash in 2020, double-digit returns seem unlikely, but the potential for moderate returns over the next 12 months still remains. Alphabet's Stock Split Has Taken Effect. PEP financial debt to EBITDA (TTM). At the same time, the companys cash from operations have been healthy at $10.6 billion in 2020. Outsmart the market with Smart Portfolio analytical tools powered by TipRanks. Optimistic: $203.03, An downtrend is forecast for this month with an optimal target price of $194.433. Optimistic: $202.90, An uptrend is forecast for this month with an optimal target price of $199.31. Its dividend payout ratio is a high 86%, which doesn't leave a lot of money left over. This will benefit a food and beverage giant like PepsiCo Pessimistic: $191.74. Meta Platforms Stock Is Trading Close To Its Fair Value. Today's call is being recorded and will be archived at www . PepsiCo's valuation has steadily risen over time; the stock now has a price-to-earnings (P/E) ratio of 29, which is comfortably higher than its average P/E of 23 over the past decade. In comparison, the S&P 500 Index saw a decline of 51% and recovered 48%. E-commerce is eating into retail sales, but this might be an investment opportunity. It also launched a new juice product line (Frutly) for its young consumer base. PepsiCo returns a lot of cash to shareholders, not only through its annual dividend raises but also through buying back stock to help grow its earnings per share. There are many reasons to like PepsiCo; its products, like Pepsi, Doritos, and Gatorade, are popular. Coke and Hershey, in contrast, each notched higher profitability in 2020. PERY Split History This segment is being lifted by more eat-at-home time. The latest closing stock price for PepsiCo as of April 25, 2023 is 189.71. These symbols will be available throughout the site during your session. In short, markets threw out this baby along with the bathwater. PEP's second split took place on May 29, 1986. The Motley Fool has a disclosure policy. Here is how PepsiCo performed compared to Wall Street estimates for the second quarter: Net Sales: $19.2 billion vs. $17.94 billion, Operating Profits: $3.1 billion vs. $2.85 billion, Outlook 2021: +6% increase in organic revenue (previous: mid-single digit percentage increase); +11% increase in core EPS (previous: high-single digit percentage increase in core constant currency EPS. Dividend Per Share is a financial indicator equal to the ratio of the company's net profit available for distribution to the annual average of ordinary shares. PVH Split History PepsiCo revenues grew 11% from $63.5 billion in 2017 to $70.4 billion in 2020, primarily led by strong performance in the Frito-Lay segment and acquisitions over the years. screen. Optimistic: $190.44, An uptrend is forecast for this month with an optimal target price of $194.433. The beverage and snacks giant widely expected by analysts to have a strong quarter as economies globally re-open from the pandemic blew away forecasts across the board. Often, however, a lower priced stock on a per-share basis can attract a wider range of buyers. You can test the chance of recovery over different time intervals of a quarter, month, or even just one day! Get the latest PepsiCo, Inc. (PEP) real-time quote, historical performance, charts, and other financial information to help you make more informed trading and investment decisions. Pessimistic: $199.39. *Average returns of all recommendations since inception. Often, however, a lower priced stock on a per-share basis can attract a wider range of buyers. This kind of revenue generation means plenty of profits to share with investors. Additionally, the recent rally is also a reflection of the continued innovation at the company. Founded in 1993 by brothers Tom and David Gardner, The Motley Fool helps millions of people attain financial freedom through our website, podcasts, books, newspaper column, radio show, and premium investing services. In 1972, following trade negotiations for cooperation, Pepsi-Cola, the companys famed beverage, became the first American consumer product to appear in the USSR. Even though commodity costs plunged, the company shelled out extra cash to fix manufacturing bottlenecks and make COVID-19-related safety changes. I wrote this article myself, and it expresses my own opinions. Returning capital to shareholders. According to our. We believe that the stock has the potential for modest gains as demand rises in the near future with expectations of subdued growth in the number of new Covid-19 cases in the U.S. Also, new product launches by the company are expected to benefit the beverage giant. Since 1977, Coke has announced 6 stock splits to Pepsi's 4 stock splits. Pepsi didn't do as well on the profitability side of the business. PepsiCo's stock has been on the rise since its Q2 2021 earnings call in mid-July. The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc. 2023, Nasdaq, Inc. All Rights Reserved. It is important to understand that this procedure does not change the capitalization of the company, as well as the total value of assets held in private hands. Consumers tend to eat and drink the same amount on a month-to-month basis. Shares Short Prior Month - the number of shares in short positions in the last month. RCL Split History, Also explore: PEP shares outstanding history, Free PEP Email Alerts: The dividend is paid every three months and the last ex-dividend date was Mar 2, 2023. Dividend Yield. According to the Trefis Machine Learning Engine, which identifies trends in a companys stock price data for the last ten years, returns for PEP stock average close to -1% in the next one-month (21 trading days) period after experiencing a 9.3% rise over the previous one-month (21 trading days) period. The company gained market share in its snack and prepared food segments and suffered just a small volume drop in the beverage division. This figure corresponds to the Average Price over the previous 50/200 days. See PepsiCo, Inc. (PEP) history of stock splits. . They go up against each other to sign athletes, movie stars and even music performers for endorsement deals. When a stock's valuation runs higher like this, there are two potential outcomes. The amount of dividends is $4.525 per share. . PepsiCo has grown revenue an average of 2% per year over the past decade, and analysts are already looking for it to revert lower, calling for 4% revenue growth in 2022. Ex-Dividend Date. Youre reading a free article with opinions that may differ from The Motley Fools Premium Investing Services. Written by Pepsi and Coke compete on many levels;. However, the possibility does remain for gradual, yet stable gains over the long term and as market participants debate whether a sell-off or a further rally is what comes next, this blue-chip name could provide a great safe harbor for investors. The number of shares would increase, but the . Please check your download folder. I don't think that this means that PepsiCo is in financial trouble. Pessimistic target level: 180.78 Optimistic target level: 188.69 PEP (PEP) Monthly Stock Prediction for 2023 Full forecast for 2023 PepsiCo forecast for this year PepsiCo Stock Prediction for May 2023 moreover, are not trading signals. PEP stock declined from levels of close to $73 in September 2007 (pre-crisis peak) to levels of little over $48 in March 2009 (as the markets bottomed out), implying PEP stock lost 34% from its approximate pre-crisis peak. Our conclusion is based on the detailed comparison of PepsiCo stock performance during the current crisis with that during the 2008 recession in our dashboard analysis. PepsiCo has a dividend yield of 2.45% and paid $4.60 per share in the past year. PepsiCo shares rose 2% in pre-market trading. Shares may have gained 20% in the past year, but given its moderate earnings growth projections, investors shouldnt expect a similar level of gains over the next 12 months.