PepsiCo Inc. (NASDAQ:PEP) shares slipped below their 50-day simple moving average (SMA) after a 4.2% decline over the past month, underperforming the soft drinks industry’s 3% growth. The stock closed at $143.60 on Nov. 3, 2025, marking a technical signal that short-term sentiment has turned bearish. Despite this dip, PEP stock remains above its 200-day SMA, indicating that long-term fundamentals and investor confidence in the company’s growth strategy remain intact.
Performance Versus Peers
Over the last month, PEP stock has lagged competitors. The Coca-Cola Company (NYSE:KO) rallied 5.6%, Monster Beverage Corporation (NASDAQ:MNST) rose 4.3%, and Keurig Dr Pepper Inc. (NASDAQ:KDP) only slipped 1.1%. PEP’s relative underperformance highlights temporary challenges in investor sentiment, even as the broader soft drinks sector and S&P 500 posted modest gains.
At $142.62, PepsiCo trades 11.8% above its 52-week low of $127.60 and 14.5% below its 52-week high of $166.89. The short-term weakness has prompted some caution among traders, though long-term holders see potential for a recovery driven by strong fundamentals.
Revenue, Profitability, and Headwinds
PepsiCo posted nearly 3% net revenue growth in Q3 2025, maintaining steady international performance. However, cost pressures—including higher supply-chain and input costs—shaved roughly three percentage points off core EPS. Consumer spending fatigue and slower demand in North America impacted Frito-Lay and Quaker brands.
The company is responding with cost-cutting, SKU streamlining, plant closures, and headcount reductions, alongside reengineering price-pack architecture. While these efforts aim to protect margins, they have not yet fully translated into meaningful earnings acceleration. International markets remain a bright spot, with 18 consecutive quarters of mid-single-digit organic growth, though global weather disruptions and currency fluctuations present ongoing challenges.
Analyst Estimates and Valuation
Analysts have slightly raised their estimates for PepsiCo’s earnings. The Zacks Consensus Estimate for 2025 EPS rose 1%, while the 2026 EPS estimate increased 0.8% over the past month. Sales projections indicate 1.8% growth for 2025 and 3.3% for 2026, with EPS forecast to rebound 5.6% in 2026.
PEP currently trades at a forward 12-month P/E of 16.79x, below industry peers like Coca-Cola (22.13x) and Monster Beverage (32.93x), yet above Keurig Dr Pepper (12.14x). This valuation suggests that PEP is attractively priced relative to peers, especially for long-term investors seeking exposure to stable consumer staples.
Fundamentals Remain Strong
Despite short-term weakness, PepsiCo’s long-term fundamentals are intact. Its global beverage and snack operations continue to generate consistent revenue, driven by innovation, brand strength, and disciplined marketing. Acquisitions such as Poppi, Siete, and Sabra, along with partnerships like Celsius, strengthen its portfolio in functional beverages and healthier snacks.
Initiatives to optimize pricing, streamline SKUs, and expand operational automation aim to boost productivity and margins. Continued investment in digital channels and functional products positions PepsiCo to capture long-term growth opportunities while managing cost pressures.
Should Investors Buy PEP Stock?
The recent dip below the 50-day SMA signals near-term caution but does not undermine PepsiCo’s strategic positioning. Strong international performance, a robust innovation pipeline, and disciplined cost initiatives support long-term growth. Upward earnings revisions and a valuation below key peers make PEP stock an attractive option for patient investors.
With resilient fundamentals and steady cash flow, PepsiCo (NASDAQ:PEP) looks well-positioned to regain momentum and deliver long-term shareholder value.
Short-Term Considerations for PEP Stock
Investors should monitor near-term catalysts that could influence PEP stock performance. Seasonal demand fluctuations, promotional campaigns, and product launches may provide temporary boosts to revenue and investor sentiment. Additionally, broader market conditions, such as interest rate expectations, inflation trends, and consumer spending patterns, could impact stock movements. While PepsiCo’s long-term fundamentals remain strong, short-term volatility may present trading opportunities for nimble investors. Those considering PEP stock should weigh the potential for continued recovery against ongoing headwinds in North America and global operational challenges, maintaining a balanced approach that considers both technical and fundamental factors.
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Author Stephanie Bédard-Châteauneuf 
