Should I buy Pepsi stock in 2025?

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At HelloSafe, our expert has been following the performance of Pepsi for over three years. Every month, hundreds of thousands of people across Canada rely on us to break down market trends and highlight the best investment opportunities. Our analyses are provided for informational purposes only and should not be considered investment advice.

What is Pepsi?

How much is Pepsi stock?

The price of Pepsi stock is rising this week. As of today, PEP trades at $134.31 USD, with a 24-hour gain of +$0.55 (+0.41%), though it shows a -10.02% decline over the past seven days.

While recent declines highlight some short-term volatility, PepsiCo's solid dividend and defensive profile may appeal to Canadian investors seeking stability amid market fluctuations.

Our full analysis on Pepsi stock

After a rigorous review of PepsiCo’s (PEP) latest financial results and its stock performance over the past three years, we applied our proprietary algorithms to integrate multi-source data—including fundamental indicators, technical signals, sector dynamics, and peer benchmarking. This disciplined analysis yields a comprehensive perspective on Pepsi’s current valuation, risk/reward profile, and potential catalysts. So, why might Pepsi stock once again become a strategic entry point into the global consumer staples sector in 2025?

Recent Performance and Market Context

PepsiCo shares have endured a notable drawdown, closing at $134.31 on April 30, 2025, which represents a decline of -23.32% year over year and a marked -16.44% over the last six months. The recent weekly pullback of -10.02% stands out, reflecting investor concern around earnings and forward guidance. However, when viewed through a broader lens, this underperformance may signal a disconnect between prevailing sentiment and underlying business resilience—especially considering PepsiCo’s robust market capitalization of $184.15 billion and its continued leadership in the global food and beverage industry.

Several positive developments have emerged despite this price weakness. PepsiCo reported Q1 2025 revenues of $17.92 billion, slightly surpassing consensus estimates and demonstrating the group's ability to generate consistent top-line results in a subdued consumer demand environment. The company further increased its dividend for the 53rd consecutive year, underscoring its commitment to shareholder returns—a rare feat even among large-cap peers.

On a macroeconomic level, consumer defensive stocks are increasingly viewed as potential safe havens when economic uncertainty mounts. As global investors continue the search for yield and stability, names like PepsiCo—characterized by consistent cash flows, diversified revenue streams, and resilient demand for snacks and beverages—are gaining renewed prominence in asset allocation models.

Technical Analysis

The technical setup for PepsiCo warrants attention from both tactical and strategic investors, as several indicators converge to suggest a possible inflection point.

• Relative Strength Index (RSI): The 14-day RSI stands at 34.52, approaching the classical oversold threshold of 30. This positioning has historically preceded periods of price stabilization and, often, subsequent rallies for defensive large-caps.
• MACD: The Moving Average Convergence Divergence (MACD) currently registers at -3.48—indicative of bearish momentum. That said, the RSI’s oversold reading hints that this momentum may soon abate, setting the stage for a mean-reverting move.
• Moving Averages: PepsiCo trades below its 20-day ($142.56), 50-day ($147.37), 100-day ($148.99), and 200-day ($159.79) moving averages. While this technical weakness is notable, it also means that upward mean reversion could be powerful should sentiment shift.
• Support and Resistance: The next key technical support is at $136.21, with secondary support at $143.08, while resistance levels of $158.48 and $167.01 mark potential near-term price targets if a reversal materializes.
• Stochastic Indicators & Volume Patterns: Oversold stochastic readings and a recent uptick in volume on down sessions reinforce the sense of capitulation—a scenario that frequently establishes a durable price floor for blue chips with solid fundamentals.

Taken together, this technical tableau suggests PepsiCo may now be trading at a historically attractive entry zone, supported by structural demand drivers that remain intact.

Fundamental Analysis

PepsiCo's core fundamentals continue to reflect resilient operating performance, conservative financial stewardship, and enduring brand equity.

• Revenue Growth and Profitability: Q1 2025 revenue slightly beat expectations, coming in at $17.92 billion. While year-over-year revenue and earnings declined (-1.8% and -10.2%, respectively), the relatively marginal shortfall during a challenging consumer environment illustrates operational robustness.
• Valuation: With a trailing P/E of 19.75 and a forward P/E of 16.50, PepsiCo now trades at a valuation notably below its historical average for mature consumer staples leaders, especially given the company’s above-market dividend yield and defensive attributes. The analyst consensus target of $174.60 implies a prospective appreciation of approximately 30% from current levels—a spread that appears fundamentally justified based on normalized earnings power.
• Structural Strengths: PepsiCo leverages a diversified brand portfolio—ranging from Pepsi, Mountain Dew, and Gatorade, to Frito-Lay and Quaker. This breadth enables cross-category synergies and pricing power, while the company’s global supply chain fosters exceptional market coverage and flexibility.
• Strategic Expansion: Initiatives focusing on healthier product innovations, premiumization, and international expansion in emerging markets position PepsiCo for structural outperformance relative to peers, particularly as evolving consumer trends converge with management’s strategic roadmap.

Put simply, the fundamentals argue that PepsiCo’s recent valuation reset is disconnected from its capacity for long-run value creation and cash flow generation.

Volume and Liquidity

Liquidity remains a key pillar of PepsiCo’s investment case—a quality highly prized among both institutional and retail investors in the Canadian market.

• Average Daily Volume: The 3-month average daily trading volume of 8.01 million shares signals robust market participation, reducing slippage and facilitating effective entry and exit strategies for portfolios of all sizes.
• Float Dynamics: With a market capitalization north of $180 billion and high institutional ownership (79.08%), PepsiCo benefits from strong hands, minimizing the risk of erratic price swings and supporting valuation stability.
• Market Confidence: Sustained volume, even during recent sell-offs, demonstrates resilient investor engagement and underpins the case for long-term confidence in the stock’s ability to recover from cyclical troughs.

This market depth, coupled with high float and institutional participation, creates a favorable liquidity backdrop for valuation rerating when sentiment turns upward.

Catalysts and Positive Outlook

Several forward-looking catalysts have the potential to reignite bullish momentum around PepsiCo in 2025 and beyond:

• Product Innovation: Continuous R&D investment is yielding healthier offerings—such as reduced-sugar beverages and plant-based snacks. These address secular consumer trends and are likely to strengthen pricing power across product categories.
• Strategic Initiatives: The extension of PepsiCo’s multi-year productivity plan through 2030 demonstrates management’s proactive stance in optimizing costs, enhancing margins, and safeguarding earnings predictability in a challenging inflationary backdrop.
• International Growth: Targeted expansion in high-growth emerging markets is expected to compensate for subdued volumes in mature geographies, unlocking new revenue and margin pools.
• Shareholder Returns: The announcement of PepsiCo’s 53rd consecutive annual dividend increase, along with an $8.6 billion capital return program (dividends and share buybacks), sends a clear signal of financial health and ongoing management alignment with shareholder interests.
• ESG and Sustainability: PepsiCo is intensifying its sustainability commitments—including packaging reduction and supply chain decarbonization—an increasingly important differentiator for global institutional investors.
• Defensive Appeal in a Volatile Economy: As volatility persists across equities and interest rate differentials compress, dividend aristocrats such as PepsiCo could see a rotation in capital flows from cyclical sectors to defensive stalwarts.

Combined, these factors lay the groundwork for a constructive re-rating of the stock as headwinds subside and investors refocus on earnings defensibility, pipeline innovation, and capital return.

Investment Strategies

Given PepsiCo’s multifaceted strengths and the current technical setup, several investment strategies appear particularly well-supported:

• For Short-Term Traders:
• The approach of key support at $136.21, coupled with an RSI nearing oversold levels, sets up for a potential rebound trade targeting the first resistance area around $158.48. Short-term momentum strategies may benefit from a stabilization signal, especially if volume reverses on an up day.
• For Medium-Term Investors:
• A dollar-cost-averaging strategy in the $134–$143 range could prove rewarding, as macro and earnings headwinds dissipate and the market reappraises PepsiCo’s yield and growth prospects. The forward P/E of 16.5 provides an attractive relative entry point versus historical multiples for global consumer leaders.
• For Long-Term Allocation:
• Investors with a multi-year horizon may view this recent correction as a unique window to accumulate stock at a meaningful discount to long-run fair value. The consistency of capital returns, paired with PepsiCo’s economic moat and international runway, is likely to attract capital as risk appetite pivots back to durable cash-flow generators.

In each case, initiating or adding positions around the current multi-year technical low, or in advance of a positive catalyst (product launch, earnings update, or policy tailwind), appears tactically advantageous.

Is it the Right Time to Buy Pepsi?

In sum, PepsiCo currently offers a rare blend of attractive valuation, defensive strength, and a clear visibility on growth catalysts. The stock’s recent technical correction has driven it toward historically advantageous entry levels, with the fundamentals more than justifying renewed investor interest. A rich dividend yield, an unrivaled portfolio of global brands, and visible paths toward margin expansion and international growth all underscore PepsiCo’s enduring investment appeal.

While short-term headwinds—ranging from input cost inflation to FX volatility—must be respected, the company’s capacity to navigate cyclicality, coupled with substantial cash returns and a best-in-class dividend profile, marks it as an exceptional candidate for portfolio inclusion at current prices.

For investors seeking resilient income, downside protection, and long-term capital appreciation, PepsiCo’s blend of yield, brand advantage, and innovation makes it a stock that seems to represent an excellent opportunity at this juncture—especially as it approaches technical oversold conditions and aligns with a host of positive structural catalysts.

As defensive allocation regains favour in an uncertain macroeconomic environment, PepsiCo stands out as a high-conviction blue chip positioned for renewed upside—a timely consideration for any investor seeking quality, stability, and enduring growth prospects.

How to buy Pepsi stock in Canada?

Buying PepsiCo stock (ticker: PEP) online is now both straightforward and secure for Canadian investors, thanks to regulated brokers overseen by national authorities. You can own Pepsi shares outright (“spot buying”) or trade them using contracts for difference (CFDs), which offer more flexibility and leverage. Both methods can be completed entirely online in a matter of minutes. Below, we explain each approach so you can choose the method that best suits your goals. For a detailed comparison of brokers and their associated fees, see our table further down the page.

Spot buying

Spot buying means you’re purchasing real PepsiCo shares on the stock exchange. As the actual owner, you benefit from any stock price appreciation and may also be eligible to receive dividends—PepsiCo currently offers a robust dividend yield. Canadian discount brokers typically charge a flat commission per order, often around $5 to $10 CAD.

Important example

If PepsiCo’s share price is $134.31 USD (approximately $184 CAD at the current exchange rate), you could buy about 5 shares with a $1,000 CAD investment, factoring in a brokerage fee of $5 CAD.
✔️ Gain scenario:
If the share price rises by 10%, your position would be worth about $1,100 CAD.
Result: That’s a +$100 CAD gross gain—an increase of +10% on your initial investment.

Trading via CFD

CFD trading lets you speculate on PepsiCo’s share price movements without owning the underlying stock. With CFDs, you can go long (betting on a price increase) or short (betting on a price decline), and use leverage to amplify your exposure. Fees typically include the spread (the broker’s margin between buy and sell prices) and daily overnight financing if you hold positions beyond one day.

Important example

You open a CFD trade on Pepsi shares with a $1,000 CAD stake and 5× leverage. You now control a $5,000 CAD position.
✔️ Gain scenario:
If the stock rises by 8%, your leveraged position gains 8% × 5 = 40%.
Result: That’s a $400 CAD gain on your $1,000 CAD commitment (excluding fees).

Final advice

Broker fees, conditions, and platforms can vary significantly—carefully compare your options before investing. The right method depends on your goals: long-term investors may prefer to buy shares outright for potential dividends and stability, while active traders could benefit from the flexibility and leverage of CFDs. To help you choose, see our broker comparison lower on this page.

Platforms

Minimum Deposit

Discover

#1

Tier 1 regulation, including ASIC and FSA

#1

Star Trader

4.9

Minimum Deposit

$50

Discover

with our partner Star Trader

#2

Broker specializing in Forex and CFDs

#2

IFC Markets

4.8

Minimum Deposit

$1

Discover

with our partner IFC Markets

#3

Broker regulated since 2006

#3

Avatrade

4.8

Minimum Deposit

$100

Discover

with our partner Avatrade

Our 7 tips for buying Pepsi stock

The latest news about Pepsi

PepsiCo announced a record 53rd consecutive annual dividend increase, underscoring long-term financial stability and commitment to shareholders. This dividend growth is especially relevant for Canadian investors seeking steady income from U.S. equities, as PepsiCo's current dividend yield of 4.04% now stands above many TSX-listed consumer staples peers. The company's reliable cash flow and history of consistent payments offer reassurance amid volatile market environments, and the increased payout is fully supported by robust free cash flow. Furthermore, the new announcement aligns with broader trends among Canadian institutional investors, who are increasingly allocating to established U.S. dividend growers for portfolio resilience.

The company reported first-quarter revenue of $17.92 billion, slightly surpassing analyst expectations despite challenging macroeconomic conditions. While adjusted EPS of $1.48 narrowly missed forecasts, PepsiCo demonstrated resilience by beating the consensus revenue target, indicating stable demand for its core product lines, including in the Canadian market. The resilient topline performance is noteworthy given headwinds from supply chain pressures and muted consumer sentiment, factors affecting both U.S. and Canadian operations. Management reiterated its focus on productivity and innovation—two areas critical for sustaining growth in the Canadian consumer environment.

PepsiCo remains highly active in the Canadian market through recent product rollouts and local partnerships to capture evolving consumer trends. Over the past week, the company has expanded portfolio offerings in Canada, particularly in the premium and healthier snack categories, and reinforced distribution ties with major Canadian grocers. These efforts reflect adaptation to regional preferences and are designed to maintain PepsiCo’s leadership against local and international competitors. Such initiatives are aligning well with continued consumer demand in Canada for better-for-you and convenience-oriented products, supporting stable revenue contributions from this geography.

Technical indicators reveal PepsiCo stock is nearing oversold conditions, potentially creating a tactical entry point for long-term investors. The 14-day RSI has declined to 34.52, close to levels often associated with oversold status, while key support at $136.21 and steady trading volume suggest the recent sell-off may be overextended. This technical setup, combined with the company's defensive qualities and regular dividend growth, could attract Canadian portfolio managers seeking value opportunities on U.S. markets as the Canadian dollar remains relatively stable.

Management reaffirmed its annual guidance for a low single-digit increase in organic revenue and significant shareholder returns in 2025. Despite trimming prior EPS growth expectations, PepsiCo still anticipates approximately $8.6 billion in total cash returned to shareholders over the full year, including $7.6 billion in dividends—further reinforcing its appeal to income-focused investors. The company’s productivity initiatives, including its multi-year plan through 2030 to combat supply chain pressures, provide an added layer of confidence for Canadian investors wary of inflation and cost volatility impacting multinational food and beverage companies.

FAQ

P. Laurore

Finance expert

Co-founder of HelloSafe and holder of a Master's degree in finance, Pauline has recognised expertise in personal finance, which she uses to help users better understand and optimise their financial choices. At HelloSafe, Pauline plays a key role in designing clear, educational content on savings, investments and personal finance. Passionate about financial education, Pauline strives, with every piece of content she oversees, to provide reliable, transparent and unbiased information for independent and informed financial management. To this end, she has tested over 100 trading platforms to help internet users make the right choices.