PepsiCo At 16 Times Earnings With A 4.3% Yield Is A Steal

Steven Fiorillo 42.85K Followers Follow Summary PepsiCo trades at 16x 2026 earnings with a 4.3% yield after a market overreaction to a penny EPS miss and soft North American volumes. PEP's international segment is on track to cross $40B in revenue, driving robust volume and margin expansion while North America stabilizes. Management reaffirmed full-year guidance, highlighted improved cash flow, and continues to invest in marketing and productivity, underscoring confidence in the turnaround. PEP's unmatched scale, portfolio, and cost advantages support a very bullish rating, with the current valuation offering a rare long-term entry point. PM Images/DigitalVision via Getty Images The market gave PepsiCo, Inc. ( PEP ) about three months of credit for its turnaround before taking all of it back. On July 9th PEP reported its Q2 2026 results and delivered $24.18 billion This article was written by Steven Fiorillo 42.85K Followers Follow I am focused on growth and dividend income. My personal strategy revolves around setting myself up for an easy retirement by creating a portfolio which focuses on compounding dividend income and growth. Dividends are an intricate part of my strategy as I have structured my portfolio to have monthly dividend income which grows through dividend reinvestment and yearly increases. Feel free to reach out to me on Seeking Alpha Analyst’s Disclosure: I/we have a beneficial long position in the shares of PEP, KO either through stock ownership, options, or other derivatives. 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. Disclaimer: I am not an investment advisor or professional. This article is my own personal opinion and is not meant to be a recommendation of the purchase or sale of stock. The investments and strategies discussed within this article are solely my personal opinions and commentary on the subject. This article has been written for research and educational purposes only. Anything written in this article does not take into account the reader’s particular investment objectives, financial situation, needs, or personal circumstances and is not intended to be specific to you. Investors should conduct their own research before investing to see if the companies discussed in this article fit into their portfolio parameters. Just because something may be an enticing investment for me or someone else, it may not be the correct investment for you. 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.