What changed
$PEP — BUY 📊 | 6 MONTHS THESIS
🎯 Q1 2026 | Rev $19.4B | EPS $1.61 vs $1.55 🟢 | Margin 17.5%
💡 Consensus expected EPS of $1.55 and was braced for potential guidance cuts given recent snack category weakness. The 3.9% beat and guidance affirmation show that pricing power and cost management are delivering stronger-than-feared results.
📉 Reward/risk: 3.5:1
🏢 Business Quality: 7/10 - Global beverage and snack leader with iconic brands, extensive distribution, and strong pricing power, but facing secular headwinds in carbonated drinks and packaged snacks.
📊 Valuation: cheap - Trading at ~16.8x forward EPS ($8.70 consensus FY2026) vs. 5-year historical range of 20-24x and peer KO at 23x. EV/EBITDA ~13x vs.
📊 Our read: BUY. Full analysis →
https://stockduty.xyz/s/PEP0617