Yesterday, PepsiCo Inc. (PEP) released its investor report, which delivered mixed results.

Positive highlights:

→ Earnings per share ($1.96) exceeded expectations ($1.94).
→ Gatorade strengthened its market position.
→ Mountain Dew Baja Blast generated $1 billion in annual revenue.
→ International revenue grew by 2.1%.
→ The company announced a 5% dividend increase and expects growth in the protein drinks segment in 2025.

Negative factors:

→ Revenue ($27.78 billion) fell short of forecasts ($27.9 billion).
→ North American sales are declining, with Quaker Foods sales down 6%.
→ Foreign exchange fluctuations are weighing on overall revenue.

Investors reacted negatively, and by the end of the trading session, PepsiCo's stock price dropped by 4.5%.

Technical Analysis of PEP Stock

→ The price remains in a downward channel. While the S&P 500 has gained over 2% since the start of 2025, PEP stock has declined by more than 6%.
→ The $150 psychological level no longer acts as support (which was evident before the earnings release). The recent price rebound (marked with blue arrows) appears to be an interim recovery within the ongoing downtrend.
→ The stock is now trading near the median line of the channel, suggesting a potential stabilisation as supply and demand tend to balance at the median. However, bearish pressure may persist, potentially leading to a new yearly low.

Is PEP Stock a Buy?

Analysts remain cautiously optimistic. According to TipRanks:
→ Only 5 out of 11 analysts recommend buying PEP.
→ The 12-month average price target is $168.

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