Pepsico Inc (PEP) Stock Forecast Oct. 16, 2026
Analysis updated on Oct. 16, 2026 (UTC) · Alpha · vs marketSwitch to Total · Nasdaq
Pepsico Inc (PEP) stock forecast summary
Our AI ranks Pepsico Inc outside the neutral middle of its coverage (a directional signal). Create a free account and follow it to see the exact price target.
Pepsico Inc is a large-cap company with a market capitalization of $175.22B. It ranks number 2 by market capitalization among the 23 Beverages issuers in our coverage with a current forecast.
For PEP, the Spearman rank correlation between our 90-day forecasts and the returns that followed is -5.0%, measured on 357 forecast dates between 2022-07-29 and 2026-07-17 on this stock's own recent history. A rank correlation runs from -100% to +100%: it measures whether higher forecasts were followed by higher returns, and a value near zero or below means the model has shown little skill on this stock. On the 30-day forecasts the same correlation is 16.0%, measured on 400 forecast dates between 2022-07-29 and 2026-09-16. Across our coverage, the out-of-sample test on 4495 stocks from 2025-01-06 to 2026-07-07 produced a positive net return in 82.5% of rebalance periods (factor-neutral book, net of estimated costs). Full backtest report
Expected return relative to the market over the horizon: a positive alpha means the model expects the stock to beat the market, whatever the market does. Ratings: strong buy ≥ +1.8%, buy ≥ +0.2%, sell < -0.9%, strong sell < -1.2% (top 15%, next 20%, middle 30%, next 20%, bottom 15% of the 2026-10-16 signals)
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How PEP ranks among 5171 stocks
90D Alpha forecasts of every company scored, cut into five relative ratings at the 15th, 35th, 65th and 85th percentiles (dashed lines).
Pepsico Inc (PEP) fundamentals
Trailing twelve months. The industry median and the rank (1 = highest) are taken over the Beverages peers listed below that report each metric.
Valuation & Market
| Metric | PEP | Rank |
|---|---|---|
| Market Cap | $175.22B | 2/23 |
| P/E Ratio | 16.13x | 7/11 |
| P/B Ratio | 10.22x | 3/15 |
| Dividend Yield | 4.50% | 1/6 |
| EPS | $7.96 | – |
| Book Value/Share | $12.56 | – |
| Revenue/Share | $71.98 | – |
| FCF/Share | $7.67 | – |
Profitability & Margins
| Metric | PEP | Rank |
|---|---|---|
| Gross Margin | 54.2% | 8/22 |
| Operating Margin | 13.4% | 9/22 |
| EBT Margin | 12.3% | 10/22 |
| Tax Rate | 20.1% | – |
Financial Health
| Metric | PEP | Rank |
|---|---|---|
| Current Ratio | 0.94x | 18/24 |
| Quick Ratio | 0.76x | 11/23 |
| D/E Ratio | 4.37x | 3/20 |
| Interest Coverage | 17.6x | 3/21 |
| Working Capital | -$1.97B | 22/23 |
Cash Flow
| Metric | PEP | Rank |
|---|---|---|
| Operating Cash Flow | $14.57B | 4/21 |
| Free Cash Flow | $10.47B | 3/13 |
| Capital Spending | -$4.10B | 13/13 |
| OCF Growth YoY | 23.9% | 6/10 |
| FCF Growth YoY | 54.3% | 2/6 |
| FCF/Sales | 10.7% | 7/13 |
| CapEx/Sales | 4.2% | 7/13 |
Operational Efficiency
| Metric | PEP | Rank |
|---|---|---|
| Inventory Turnover | 7.0x | 4/20 |
| Fixed Assets Turnover | 3.3x | 8/15 |
| Days Inventory | 52 days | 17/20 |
| Payables Period | 205 days | 4/20 |
Income Statement
| Metric | PEP | Rank |
|---|---|---|
| Total Revenue | $98.24B | 2/16 |
| Operating Income | $15.05B | 2/21 |
| SG&A Expense | $38.16B | 1/15 |
| Cost of Goods Sold | $45.02B | 1/21 |
Dividend & Shareholder Information
| Metric | PEP | Rank |
|---|---|---|
| Dividends Per Share | $5.77 | – |
| Payout Ratio | 72.5% | 4/5 |
| Shares Outstanding | 1365M | – |
| EPS Growth | 51.3% | 2/11 |
Balance Sheet Highlights (USD millions)
| Total Current Assets | $32.56B | 35.3% of assets |
| Cash & Short-term Investments | $10.68B | 11.6% of assets |
| Inventory | $6.43B | 7.0% of assets |
| Total Liabilities | $74.91B | 81.3% of assets |
| Short-term Debt | $9.22B | 10.0% of assets |
PEP quarterly financials and insider trading
Pepsico Inc (PEP) industry peers
Companies classified under the same SEC industry code as Pepsico Inc (Beverages): 25 common-stock issuers with a forecast this week, one row per issuer, largest first. This is a classification match, not a curated list of competitors.
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Sign up free| Company | 90-Day AI Forecast (Alpha) | Market Cap |
|---|---|---|
| PEP Pepsico Inc | ▼ | $175.22B |
| KO Coca Cola Co | ▶ | $395.75B |
| DEO Diageo Plc | ▼ | $57.84B |
| ABEV Ambev S.A. | ▼ | $51.62B |
| KDP Keurig Dr Pepper Inc. | ▶ | $46.51B |
| STZ Constellation Brands, Inc. | ▼ | $22.13B |
| BF-B Brown Forman Corp | ▼ | $13.25B |
| PRMB Primo Brands Corp | ▶ | $6.88B |
| COCO Vita Coco Company, Inc. | ▶ | $3.37B |
| WEST Westrock Coffee Co | ▼ | $836M |
| SUJA Suja Life, Inc. | ▶ | $278M |
| BRCC Brc Inc. | ▼ | $263M |
| BUDA Buda Juice, Inc. | ▼ | $97M |
| CWGL Crimson Wine Group, Ltd | ▲ | $87M |
| JSDA Jones Soda Co. | ▲ | $33M |
| SRXH Srx Global Inc. | ▼ | $24M |
| WVVI Willamette Valley Vineyards Inc | ▲ | $10M |
| MOJO Equator Beverage Co | ▲ | $8M |
| AMSS Amass Brands | ▼ | $4M |
| YHC Lqr House Inc. | ▼ | $2M |
| IPST Ip Strategy Holdings, Inc. | ▼ | $2M |
| EDVA Endovia Health Sciences, Inc. | ▼ | $940K |
| CIRX Cirtran Corp | ▶ | $120K |
| MALG Microalliance Group Inc. | ▶ | N/A |
| MDWK Mdwerks, Inc. | ▼ | N/A |
Where PEP sits on the market map
Pepsico Inc (PEP) stock news
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Pepsico Inc (PEP) stock forecast FAQ
What is the Pepsico Inc (PEP) stock forecast?
Our AI ranks Pepsico Inc outside the neutral middle of its coverage (a directional signal). Create a free account and follow it to see the exact price target.
How accurate are Pepsico Inc stock predictions?
For PEP, the Spearman rank correlation between our 90-day forecasts and the returns that followed is -5.0%, measured on 357 forecast dates between 2022-07-29 and 2026-07-17 on this stock's own recent history. A rank correlation runs from -100% to +100%: it measures whether higher forecasts were followed by higher returns, and a value near zero or below means the model has shown little skill on this stock. On the 30-day forecasts the same correlation is 16.0%, measured on 400 forecast dates between 2022-07-29 and 2026-09-16. Across our coverage, the out-of-sample test on 4495 stocks from 2025-01-06 to 2026-07-07 produced a positive net return in 82.5% of rebalance periods (factor-neutral book, net of estimated costs). Full backtest report
How often are Pepsico Inc forecasts updated?
Pepsico Inc forecasts are refreshed on trading days as the daily model run completes. The forecast on this page was produced on Oct. 16, 2026.
Which companies are Pepsico Inc's industry peers?
25 issuers in our coverage, PEP included, share the SEC industry code Beverages. The largest are: Coca Cola Co (KO), Diageo Plc (DEO), Ambev S.A. (ABEV), Keurig Dr Pepper Inc. (KDP), Constellation Brands, Inc. (STZ), Brown Forman Corp (BF-B).
This analysis is generated automatically using our proprietary AI systems and should not be considered personalized investment advice. Past performance does not guarantee future results. Always conduct your own research and consider consulting a financial advisor before making investment decisions.