Pepsico Stock Buy Hold or Sell Recommendation

PEP
 Stock
  

USD 168.52  0.08  0.0474%   

Considering the 90-day investment horizon and your above-average risk tolerance, our recommendation regarding Pepsico is 'Strong Buy'. Macroaxis provides Pepsico buy-hold-or-sell recommendation only in the context of selected investment horizon and investor attitude towards risk assumed by holding Pepsico positions. The advice algorithm takes into account all of Pepsico's available fundamental, technical, and predictive indicators you will find on this site.
  
The advice is provided from Pepsico's buy-and-hold perspective. Please check Pepsico Analyst Recommendation to compare Macroaxis Buy or Sell Recommendation with the current analyst consensus. To check ratings for multiple equity instruments, please use the Instant Ratings tool. We conduct extensive research on individual companies such as Pepsico and provide practical buy, sell, or hold advice based on selected investing horizon and risk tolerance towards Pepsico.

Execute Pepsico Buy or Sell Advice

The Pepsico recommendation should be used to complement the buy-or-sell advice compiled from the current analysts' consensus on Pepsico. Macroaxis does not own or have any residual interests in Pepsico or other equities on which the buy-or-sell advice is provided. Please provide your input below to execute Pepsico's advice using the current market data and latest reported fundamentals.

Time Horizon

Risk Tolerance

Execute Advice
Sell PepsicoBuy Pepsico
Strong Buy

Volatility

Details

Hype Condition

Details

Current Valuation

Details

Odds of Distress

Details

Economic Sensitivity

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Analyst Consensus

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Reporting Quality (M-Score)

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For the selected time horizon Pepsico has a Risk Adjusted Performance of 0.083, Jensen Alpha of 0.0944, Total Risk Alpha of 0.1078, Sortino Ratio of 0.1008 and Treynor Ratio of 0.1059
Macroaxis provides advice on Pepsico to complement and cross-verify current analyst consensus on Pepsico. Our recommendation engine determines the firm's potential to grow exclusively from the perspective of an investor's current risk tolerance and investing horizon. To make sure Pepsico is not overpriced, please check all Pepsico fundamentals, including its revenue, cash flow from operations, current asset, as well as the relationship between the cash per share and beta . Given that Pepsico has a price to earning of 25.15 X, we recommend you to check out Pepsico market performance and probability of bankruptcy to ensure the company can sustain itself in the current economic cycle given your recent risk tolerance and investing horizon.

Pepsico Trading Alerts and Improvement Suggestions

The company has 39.28 B in debt with debt to equity (D/E) ratio of 2.1, meaning that the company heavily relies on borrowing funds for operations. Pepsico has a current ratio of 0.81, suggesting that it has not enough short term capital to pay financial commitments when the payables are due. Debt can assist Pepsico until it has trouble settling it off, either with new capital or with free cash flow. So, Pepsico's shareholders could walk away with nothing if the company can't fulfill its legal obligations to repay debt. However, a more frequent occurrence is when companies like Pepsico sell additional shares at bargain prices, diluting existing shareholders. Debt, in this case, can be an excellent and much better tool for Pepsico to invest in growth at high rates of return. When we think about Pepsico's use of debt, we should always consider it together with cash and equity.
About 74.0% of Pepsico shares are owned by institutional investors
Latest headline from stocknews.com: PEP 3 Stocks to Buy Now That Offer Steady and Reliable Income - StockNews.com

Pepsico current analysts advice

We track the performance of the top 100 financial experts across various large and mid-size financial boutiques. Pepsico analyst recommendations are determined by taking all analyst recommendations and averaging them as Strong Buy, Buy, Hold, Strong Sell or Sell. There is no one specific way to measure analysis performance other than comparing it to the past results via a very sophisticated attribution analysis. Pepsico analyst consensus and target price projections should be used in combination with other traditional techniques such as stock price forecasting, technical analysis, earnings estimate, and various momentum models.
Target Mean Price181.69
Target Median Price182.00
Target High Price200.00
Recommendation Mean2.50
Number Of Analyst Opinions18
Target Low Price160.00
Average Consensus Buy
The consensus estimates and target price estimation comprises individual analyst assessments, and may or may not mutch the Macroaxis buy or sell advice. It is determined by taking an average of all analyst recommendations and classifying them as Strong Buy, Buy, Hold, or Sell.

Pepsico Returns Distribution Density

The distribution of Pepsico's historical returns is an attempt to chart the uncertainty of Pepsico's future price movements. The chart of the probability distribution of Pepsico stock daily returns describes the distribution of returns around its average expected value. We use Pepsico price's Value At Risk and its Upside Potential as a relative measure of the distribution. The graph of the distribution of Pepsico returns is essential to provide solid investment advice for Pepsico.
Mean Return0.07Value At Risk-1.66
Potential Upside1.64Standard Deviation1.01
   Return Density   
       Distribution  
Investment risk management requires an estimate of the probability of extreme price changes. Therefore, the correct representation of the distribution of Pepsico historical returns presented in an easy-to-digest graphical form helps investors and money managers understand the risk-reward trade-off of different investement strategies.

Pepsico Stock Institutional Investors

Have you ever been surprised when a price of an equity instrument such as Pepsico is soaring high without any particular reason? This is usually happening because many institutional investors are aggressively trading Pepsico backward and forwards among themselves. Pepsico's institutional investor refers to the entity that pools money to purchase Pepsico's securities or originate loans. Institutional investors include commercial and private banks, credit unions, insurance companies, pension funds, hedge funds, endowments, and mutual funds. Operating companies that invest excess capital in these types of assets may also be included in the term and may influence corporate governance by exercising voting rights in their investments.
Security TypeSharesValue
Vanguard Group IncCommon Shares127.2 M21.2 B
Blackrock IncCommon Shares107.5 M17.9 B
State Street CorpCommon Shares59.2 M9.9 B
Geode Capital Management LlcCommon Shares24.8 M4.1 B
Bank Of America CorpCommon Shares23.1 M3.8 B
Morgan StanleyCommon Shares22 M3.7 B
Northern Trust CorpCommon Shares17.5 M2.9 B
Note, although Pepsico's institutional investors appear to be way more sophisticated than retail investors, it remains unclear if professional active investment managers can reliably enhance risk-adjusted returns by an amount that exceeds fees and expenses.

Pepsico Greeks

Most traded equities are subject to two types of risk - systematic (i.e., market) and unsystematic (i.e., nonmarket or company-specific) risk. Unsystematic risk is the risk that events specific to Pepsico or Consumer Defensive sector will adversely affect the stock's price. This type of risk can be diversified away by owning several different stocks in different industries whose stock prices have shown a small correlation to each other. On the other hand, systematic risk is the risk that Pepsico's price will be affected by overall stock market movements and cannot be diversified away. So, no matter how many positions you have, you cannot eliminate market risk. However, you can measure a Pepsico stock's historical response to market movements and buy it if you are comfortable with its volatility direction. Beta and standard deviation are two commonly used measures to help you make the right decision.
α
Alpha over DOW
0.09
β
Beta against DOW0.61
σ
Overall volatility
1.00
Ir
Information ratio 0.11

Pepsico Volatility Alert

Pepsico has relatively low volatility with skewness of -0.83 and kurtosis of 2.22. However, we advise all investors to independently investigate Pepsico to ensure all accessible information is consistent with the expectations about its upside potential and future expected returns. Understanding different market volatility trends often help investors to time the market. Properly using volatility indicators enable traders to measure Pepsico's stock risk against market volatility during both bullish and bearish trends. The higher level of volatility that comes with bear markets can directly impact Pepsico's stock price while adding stress to investors as they watch their shares' value plummet. This usually forces investors to rebalance their portfolios by buying different stocks as prices fall.

Pepsico Implied Volatility

Pepsico's implied volatility exposes the market's sentiment of Pepsico stock's possible movements over time. However, it does not forecast the overall direction of its price. In a nutshell, if Pepsico's implied volatility is high, the market thinks the stock has potential for high price swings in either direction. On the other hand, the low implied volatility suggests that Pepsico stock will not fluctuate a lot when Pepsico's options are near their expiration.

Pepsico Fundamentals Vs Peers

Comparing Pepsico's fundamentals to the average values of its peers is one of the most widely used and accepted methods of equity analyses. It helps to analyze Pepsico's direct or indirect competition across all of the common fundamentals between Pepsico and the related equities. This way, we can detect undervalued stocks with similar characteristics as Pepsico or determine the stocks which would be an excellent addition to an existing portfolio. Peer analysis of Pepsico's fundamental indicators could also be used in its relative valuation, which is a method of valuing Pepsico by comparing valuation metrics with those of similar companies.
    
 Better Than Average     
    
 Worse Than Average Compare Pepsico to competition
FundamentalsPepsicoPeer Average
Return On Equity54.61 %(0.31) %
Return On Asset8.26 %(0.14) %
Profit Margin11.28 %(1.27) %
Operating Margin18.10 %(5.51) %
Current Valuation264.14 B16.62 B
Shares Outstanding1.38 B571.82 M
Shares Owned by Insiders0.15 %10.09 %
Shares Owned by Institutions74.07 %39.21 %
Number of Shares Shorted9.84 M4.71 M
Price to Earning25.15 X28.72 X
Price to Book12.43 X9.51 X
Price to Sales2.81 X11.42 X
Revenue81.86 B9.43 B
Gross Profit42.43 B27.38 B
EBITDA14.82 B3.9 B
Net Income9.24 B570.98 M
Cash and Equivalents5.69 B2.7 B
Cash per Share4.12 X5.01 X
Total Debt39.28 B5.32 B
Debt to Equity2.10 %48.70 %
Current Ratio0.83 X2.16 X
Book Value Per Share13.43 X1.93 K
Cash Flow from Operations11.16 B971.22 M
Short Ratio2.71 X4.00 X
Earnings Per Share6.64 X3.12 X
Price to Earnings To Growth3.13 X4.89 X
Number of Employees309 K18.84 K
Beta0.56-0.15
Market Capitalization230.43 B19.03 B
Total Asset69.67 B29.47 B
Retained Earnings55.41 B9.33 B
Working Capital5.45 B1.48 B
Current Asset23.03 B9.34 B
   Pepsico exotic insider transaction detected [view details]

Pepsico Market Momentum

Traders often use several daily momentume indicators to supplement a more traditional technical analysis when analyzing securities such as Pepsico . With many different options, investors must choose the best indicators for them and familiarize themselves with how they work. We suggest combining traditional momentum indicators with more near-term forms of technical analysis such as Accumulation Distribution or Daily Balance Of Power. With their quantitative nature, daily value technical indicators can also be incorporated into your automated trading systems.

About Pepsico Buy or Sell Advice

When is the right time to buy or sell Pepsico? Buying financial instruments such as Pepsico Stock isn't very hard. However, what challenging for most investors is doing it at the right time to beat the market. Proper market timing is something most people cannot do without sophisticated tools, which help to isolate the right opportunities. Macroaxis provides hands-on modules to deliver winning trades and diversify your portfolios on a daily basis. Most of our advising modules are very easy to use and apply.
Please read more on our stock advisor page.

Use Investing Ideas to Build Portfolios

In addition to having Pepsico in your portfolios, you can quickly add positions using our predefined set of ideas and optimize them against your very unique investing style. A single investing idea is a collection of funds, stocks, ETFs, or cryptocurrencies that are programmatically selected from a pull of investment themes. After you determine your investment opportunity, you can then find an optimal portfolio that will maximize potential returns on the chosen idea or minimize its exposure to market volatility.

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Cars
Cars Theme
Domestic and international companies involved in manufacturing and serving automobiles and trucks. The Cars theme has 40 constituents at this time.
You can either use a buy-and-hold strategy to lock in the entire theme or actively trade it to take advantage of the short-term price volatility of individual constituents. Macroaxis can help you discover thousands of investment opportunities in different asset classes. In addition, you can partner with us for reliable portfolio optimization as you plan to utilize Cars Theme or any other thematic opportunities.
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Please check Pepsico Analyst Recommendation to compare Macroaxis Buy or Sell Recommendation with the current analyst consensus. To check ratings for multiple equity instruments, please use the Instant Ratings tool. Note that the Pepsico information on this page should be used as a complementary analysis to other Pepsico's statistical models used to find the right mix of equity instruments to add to your existing portfolios or create a brand new portfolio. You can also try Stock Screener module to find equities using custom stock filter or screen asymmetry in trading patterns, price, volume, or investment outlook..

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Is Pepsico's industry expected to grow? Or is there an opportunity to expand the business' product line in the future? Factors like these will boost the valuation of Pepsico. If investors know Pepsico will grow in the future, the company's valuation will be higher. The financial industry is built on trying to define current growth potential and future valuation accurately. All the valuation information about Pepsico listed above have to be considered, but the key to understanding future value is determining which factors weigh more heavily than others.
The market value of Pepsico is measured differently than its book value, which is the value of Pepsico that is recorded on the company's balance sheet. Investors also form their own opinion of Pepsico's value that differs from its market value or its book value, called intrinsic value, which is Pepsico's true underlying value. Investors use various methods to calculate intrinsic value and buy a stock when its market value falls below its intrinsic value. Because Pepsico's market value can be influenced by many factors that don't directly affect Pepsico's underlying business (such as a pandemic or basic market pessimism), market value can vary widely from intrinsic value.
Please note, there is a significant difference between Pepsico's value and its price as these two are different measures arrived at by different means. Investors typically determine Pepsico value by looking at such factors as earnings, sales, fundamental and technical indicators, competition as well as analyst projections. However, Pepsico's price is the amount at which it trades on the open market and represents the number that a seller and buyer find agreeable to each party.