PepsiCo: Buy The Dip, But Don't Expect An Easy Recovery

Dhierin Bechai Investing Group Leader Follow Summary PepsiCo remains a buy, supported by robust international growth and a 4.3% dividend yield, despite North American weakness. Q2 results highlight international strength offsetting sluggish North American recovery, with core operating margins under pressure and volume growth lagging expectations. Guidance for 2026 is reaffirmed, but EPS is likely to land at the low end of the range, hinging on a strong Q4 and tariff refunds. Valuation upside to $147–$156 is justified by peer multiples and historical EV/EBITDA, but further gains depend on successful execution and easing macro risks. Looking for more investing ideas like this one? Get them exclusively at The Aerospace Forum. Learn More » Fotoatelie/iStock Editorial via Getty Images In December, I added PepsiCo (NASDAQ: PEP ) to my coverage. The stock subsequently exceeded my initial price target, but that strength has not lasted. At the September 4 closing price of $137.63, the shares have dropped around 12% since This article was written by Dhierin Bechai 24.65K Followers Follow Dhierin-Perkash Bechai is an aerospace, defense and airline analyst. Dhierin runs the investing group The Aerospace Forum, whose goal is to discover investment opportunities in the aerospace, defense and airline industry. With a background in aerospace engineering, he provides analysis of a complex industry with significant growth prospects, and offers context to developments as they occur, describing how they might affect investment theses. His investing ideas are driven by data informed analysis. The investing group also provides direct access to data analytics monitors. Learn more. Analyst’s Disclosure: I/we have no stock, option or similar derivative position in any of the companies mentioned, and no plans to initiate any such positions within the next 72 hours. I wrote this article myself, and it expresses my own opinions. I am not receiving compensation for it (other than from Seeking Alpha). I have no business relationship with any company whose stock is mentioned in this article. Seeking Alpha's Disclosure: Past performance is no guarantee of future results. No recommendation or advice is being given as to whether any investment is suitable for a particular investor. Any views or opinions expressed above may not reflect those of Seeking Alpha as a whole. Seeking Alpha is not a licensed securities dealer, broker or US investment adviser or investment bank. Our analysts are third party authors that include both professional investors and individual investors who may not be licensed or certified by any institute or regulatory body.