PepsiCo, Inc. engages in the manufacture, marketing, distribution, and sale of various beverages and convenient foods worldwide. The company operates through seven segments: Frito-Lay North America; Quaker Foods North America; PepsiCo Beverages North America; Latin America; Europe; Africa, Middle East and South Asia; and Asia Pacific, Australia and New Zealand and China Region. It provides dips, cheese-flavored snacks, and spreads, as well as corn, potato, and tortilla chips; cereals, rice, pasta, mixes and syrups, granola bars, grits, oatmeal, rice cakes, and side dishes; beverage concentrates, fountain syrups, and finished goods; ready-to-drink tea, coffee, and juices; dairy products; and sparkling water makers and related products, as well as distributes alcoholic beverages under Hard MTN Dew brand. The company offers its products primarily under the Lay's, Doritos, Fritos, Tostitos, BaiCaoWei, Cheetos, Cap'n Crunch, Life, Pearl Milling Company, Gatorade, Pepsi-Cola, Mountain Dew, Quaker, Rice-A-Roni, Aquafina, Bubly, Emperador, Diet Mountain Dew, Diet Pepsi, Gatorade Zero, Crush, Propel, Dr Pepper, Schweppes, Marias Gamesa, Ruffles, Sabritas, Saladitas, Tostitos, 7UP, Diet 7UP, H2oh!, Manzanita Sol, Mirinda, Pepsi Black, Pepsi Max, San Carlos, Toddy, Walkers, Chipsy, Kurkure, Sasko, Spekko, White Star, Smith's, Sting, SodaStream, Lubimyj Sad, Agusha, Chudo, Domik v Derevne, Lipton, and other brands. It serves wholesale and other distributors, foodservice customers, grocery stores, drug stores, convenience stores, discount/dollar stores, mass merchandisers, membership stores, hard discounters, e-commerce retailers and authorized independent bottlers, and others through a network of direct-store-delivery, customer warehouse, and distributor networks, as well as directly to consumers through e-commerce platforms and retailers. The company was founded in 1898 and is based in Purchase, New York.

PepsiCo, Inc.

Looking today at week-over-week shares outstanding changes among the universe of ETFs covered at ETF Channel, one standout is the Schwab US Dividend Equity ETF (Symbol: SCHD) where we have detected an approximate $259.0 million dollar outflow -- that's a 0.4% decrease week over week (from 2,599,000,000 to 2,589,450,000). Among the largest underlying components of SCHD, in trading today Lockheed Martin Corp (Symbol: LMT) is up about 0.1%, PepsiCo Inc (Symbol: PEP) is up about 0.2%, and Merck & Co Inc (Symbol: MRK) is lower by about 0.4%. For a complete list of holdings, visit the SCHD Holdings page » The chart below shows the one year price performance of SCHD, versus its 200 day moving average:
Looking at the chart above, SCHD's low point in its 52 week range is $23.87 per share, with $29.72 as the 52 week high point — that compares with a last trade of $27.11. Comparing the most recent share price to the 200 day moving average can also be a useful technical analysis technique -- learn more about the 200 day moving average ».
Exchange traded funds (ETFs) trade just like stocks, but instead of ''shares'' investors are actually buying and selling ''units''. These ''units'' can be traded back and forth just like stocks, but can also be created or destroyed to accommodate investor demand. Each week we monitor the week-over-week change in shares outstanding data, to keep a lookout for those ETFs experiencing notable inflows (many new units created) or outflows (many old units destroyed). Creation of new units will mean the underlying holdings of the ETF need to be purchased, while destruction of units involves selling underlying holdings, so large flows can also impact the individual components held within ETFs.
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Preferred Stocks By Industry
MS Options Chain
FDX RSI
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.

Notable ETF Outflow Detected - SCHD, LMT, PEP, MRK

Key Points
Dividend growth historically tracks rising earnings, creating a compounding advantage that often outperforms the market over time.
A steadily climbing payout typically signals durable cash flow, pricing power, and disciplined capital allocation.
PepsiCo and Philip Morris offer steady dividend growth.
Dividend growth stands as one of the stock market's quiet advantages. Over long stretches, companies raising their payouts at a healthy clip have tended to beat the performance of the overall S&P 500 because dividend growth tracks rising earnings.
A steadily climbing dividend usually signals strong cash flow, pricing power, and smart capital allocation. It also sends a signal to the market. When the dividend grows faster than investors expect, the stock often gets a higher valuation as bigger future earnings and payouts become clear.
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Two very different companies show this in consumer staples and tobacco. One blends a solid yield with portfolio reshaping. The other offers immediate income with accelerating raises as smoke-free products scale globally.
The snack titan pivoting to "healthier" options
PepsiCo (NASDAQ: PEP) makes Lay's chips, Gatorade, and Pepsi-Cola across a global snack and beverage empire that generated $24 billion in third-quarter 2025 revenue. The company pays $1.42 per share each quarter in dividends, delivering a 3.75% annual yield at the moment.
Now, the stock's 105% payout ratio looks scary until you remember PepsiCo is a cash-generating machine, thanks to its resilient business model. Speaking to this point, North American volumes declined 3% in the third quarter as the company pushed pricing, but international markets picked up the slack.
Management is in the process of reshaping the portfolio due to unfavorable soda trends. The $1.95 billion Poppi acquisition closed in May 2025, bringing a prebiotic soda that grew retail sales more than 50% year-to-date. "Prebiotics are parts of food the body doesn't digest but that may be used by microorganisms. Prebiotics may trigger the growth of the 'good' germs in the gut," according to the Mayo Clinic.
PepsiCo launched its own Pepsi Prebiotic Cola in July and continues layering in functional benefits across Gatorade and Propel. The company expects to return to its long-term growth algorithm next year, as innovation takes hold and cost cuts fund reinvestment.
PepsiCo stock trades at just 17.8 times forward earnings estimates, a serious bargain to the S&P 500, which trades at nearly 29 times earnings. Adding to the appeal, the beverage giant has raised its dividend by 7%, on average, over the prior five years. That's elite-level dividend growth.
All told, the combination of current income, steady raises in the past, and a portfolio pivot toward health-conscious consumers makes the stock a buy for dividend growth investors willing to look past near-term volume pressure.
This tobacco giant turns to heat not burn
Philip Morris International (NYSE: PM) sells Marlboro cigarettes and Iqos heated tobacco globally, generating $10.8 billion in third-quarter 2025 revenue. The company pays $1.47 per share each quarter for a 3.7% annual yield.
The 78.7% payout ratio looks reasonable for a tobacco company printing cash, and Philip Morris just proved the dividend is safe with an 8.9% increase this month. That's the biggest single raise since the 2008 spinoff from Altria, and it signals management's confidence in a transformation that's actually working.
Smoke-free products are carrying the business now. The category hit 41% of total revenue in the third quarter and over 42% of gross profit, with volumes jumping 16.6%. Zyn nicotine pouch shipments in the U.S. grew 37% to 205 million cans.
Iqos heated tobacco grabbed 9.1% share in markets where it competes, and Philip Morris controls about 76% of the global heat-not-burn category. The company raised its full-year adjusted earnings forecast to $7.46 to $7.56 per share.
Philip Morris trades at 18 times forward earnings, while diluted EPS is growing by double digits. The recent 8.9% dividend increase crushes the 3.2% five-year average, and there's room for faster raises as smoke-free margins expand. After all, management expects to exceed its multiyear growth targets as Zyn and Iqos scale globally.
The key question for dividend growth investors is this: Can nicotine pouches and heated tobacco replace cigarette profits before volumes collapse? Given Philip Morris' current trajectory on the smoke-free front, the answer appears to be yes, making the stock a worthwhile buy for long-term income investors.
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George Budwell has positions in PepsiCo and Philip Morris International. The Motley Fool recommends Philip Morris International. The Motley Fool has a disclosure policy.
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.

2 Top Dividend Growth Stocks to Buy Now

Key Points
Sterling bought 21,079 shares of PepsiCo; estimated trade value of approximately $2.96 million.
The position represents 1.8% of the fund’s 13F reportable assets under management.
Sterling's post-trade stake: 21,079 shares, valued at $2,960,293 as of September 30, 2025.
PepsiCo is not among the fund’s top five holdings by position size.
PepsiCo (NASDAQ:PEP) was the subject of a new position by Sterling Investment Management, which acquired 21,079 shares for an estimated $2.96 million as of Q3 2025, according to its SEC filing dated October 20, 2025.
What happened
Sterling Investment Management disclosed a new stake in PepsiCo, acquiring approximately 21,079 shares during the third quarter of 2025, according to a U.S. Securities and Exchange Commission (SEC filing) dated October 20, 2025.
The estimated transaction value was $2.96 million.
The position accounted for 1.8% of the fund's $166.48 million in reportable U.S. equity assets.
What else to know
This new position now represents 1.8% of total 13F assets under management as of September 30, 2025.
Top holdings after the filing:
Vanguard Mortgage-Backed Securities ETF: $15.21 million (9.1% of AUM)
Berkshire Hathaway Class B: $15.06 million (9.0% of AUM)
SPDR Gold Shares ETF: $12.49 million (7.5% of AUM)
SPDR Bloomberg 1-3 Month T-Bill ETF: $6.81 million (4.1% of AUM)
S&P Global: $5.72 million (3.4% of AUM)
As of October 20, 2025, shares were priced at $153.64, down 12.2% over one year, trailing the S&P 500 by 24 percentage points for the year.
Company overview
Revenue (TTM)
$92.37 billion
Net Income (TTM)
$7.22 billion
Dividend Yield
3.62%
Price (as of market close October 20, 2025)
$153.64
Company snapshot
PepsiCo:
Offers a broad portfolio of branded beverages and convenient foods, including snacks, cereals, ready-to-drink teas, juices, and dairy products.
Generates revenue primarily through the manufacture, marketing, and distribution of consumer packaged goods sold via wholesale, retail, and e-commerce channels worldwide.
Serves a global customer base, including grocery and convenience stores, foodservice operators, mass merchandisers, and e-commerce retailers.
PepsiCo is a leading global provider of non-alcoholic beverages and convenient foods, operating across multiple continents with a diverse product lineup.
The company leverages its scale, brand portfolio, and integrated distribution networks to maintain a strong presence in both developed and emerging markets.
Pepsi's strategy emphasizes a broad market reach to sustain its competitive position within the consumer defensive sector.
Foolish take
Sterling Investment Management's purchase of PepsiCo is noteworthy as it is a brand-new position for the firm.
Not only that, but it immediately becomes Sterling's 19th-largest position among its 67 holdings at 1.8% of its portfolio.
While PepsiCo won't be confused for a growth stock anymore, it has matured into a $200 billion beverage and snacking behemoth that offers investors a steadily growing dividend that yields 3.6%.
Over the last five years, Pepsi stock has essentially round-tripped back to where it started, only rising 2% annually. However, after the stock sold off over 30% from its all-time high, Sterling swooped in and opened a position in the steady-Eddie investment.
While Pepsi now trades at a low share price, it still isn't outrageously "cheap," trading at 19 times forward earnings. Growing sales, net income, and dividend payments by 6% annually over the last five years, Pepsi is more of a cornerstone investment than anything resembling a stock with multibagger potential.
For investors seeking stability, capital preservation, and dividend growth -- like Sterling Investment Management -- Pepsi could be a great addition to your portfolio. However, investors shouldn't necessarily expect market-smashing returns over the long haul.
Glossary
13F reportable assets: Assets that institutional investment managers must disclose quarterly to the SEC, showing their U.S. equity holdings.
Assets under management (AUM): The total market value of investments managed by a fund or investment firm on behalf of clients.
Dividend yield: Annual dividends paid by a company divided by its share price, shown as a percentage.
Trailing: Refers to a performance measure calculated over a past period, such as one year, ending at the most recent date.
Consumer defensive sector: Industry group including companies that produce essential goods, such as food and beverages, that are less affected by economic cycles.
Fund holding: A specific security or asset that makes up part of an investment fund's portfolio.
Position size: The value or proportion of a particular investment relative to the total assets in a portfolio.
Stake: The amount of ownership or shares an investor or fund holds in a company.
TTM: The 12-month period ending with the most recent quarterly report.
Distribution network: The system a company uses to deliver products from manufacturing to end customers, including logistics and sales channels.
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Josh Kohn-Lindquist has no position in any of the stocks mentioned. The Motley Fool has positions in and recommends Berkshire Hathaway and S&P Global. The Motley Fool has a disclosure policy.
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.

Sterling Investment Management Opens New $3 Million Pepsi (NASDAQ: PEP) Position: Should Investors Buy Too?

In the global beverage battleground, few rivalries are as iconic as the one between The Coca-Cola Company KO and PepsiCo, Inc. PEP. These two titans dominate the thirst-quenching industry, commanding an overwhelming share of the global soft drink market while expanding far beyond fizzy colas into snacks, juices, energy drinks and bottled water.
Coca-Cola reigns supreme in the carbonated beverages segment, leveraging its timeless brand and vast international reach, while PepsiCo wields its diversified empire, spanning beverages to food giants like Lay’s and Doritos, to balance growth across multiple categories.
Together, these companies shape consumer preferences and redefine refreshment itself, yet their contrasting business models and strategic priorities set the stage for a fascinating duel overglobal marketleadership and future dominance.
The Case for KO
Coca-Cola’s investment case shines through its enduring market dominance, strategic agility and diversified global reach. The company commands one of the largest shares of the non-alcoholic ready-to-drink market and has now achieved 18 consecutive quarters of value share gains. Its extensive beverage portfolio, spanning sparkling soft drinks, juices, dairy, hydration and energy categories, enables Coca-Cola to stay relevant across demographics and income segments.
North America continues to drive performance with sequential volume improvement, while fast-growing regions like India, Brazil and Africa underpin longer-term growth through affordability-led expansion and localized innovation.
Coca-Cola’s all-weather business model blends brand strength with operational efficiency. The company’s digital-first marketing transformation is deepening consumer engagement through personalized and culturally resonant campaigns, such as Fanta’s global Halloween collaboration. Meanwhile, its ongoing refranchising efforts, most recently in India and Africa, are sharpening focus on core competencies, driving operating margin expansion and freeing capital for innovation.
KO’s portfolio balances affordability and premiumization, highlighted by offerings like mini-cans, smartwater, Topo Chico and fairlife, positioning it to cater to evolving lifestyles and health-conscious consumers alike. These moves reinforce its strategic flywheel of marketing excellence, innovation and execution.
Coca-Cola delivered 6% organic revenue growth in third-quarter 2025, with margin expansion despite currency and cost headwinds. Strong free cash flow generation, projected near $10 billion, supports continued reinvestment and shareholder returns. While tariff and trade frictions, including Mexico’s sugar tax, pose near-term risks, Coca-Cola’s adaptable pricing strategy, efficient supply chain and robust system partnerships leave it well-equipped to sustain profitable growth and long-term value creation.
The Case for PEP
PepsiCo remains a global powerhouse with a balanced and diversified model that spans beverages and convenient foods, commanding a formidable share of the global refreshment market. Its beverage arm, led by flagship brands like Pepsi, Mountain Dew and Gatorade, continues to expand across categories, from energy and functional hydration to modern sodas like poppi.
Meanwhile, its food segment, anchored by Frito-Lay, Quaker and Sun Chips, contributes roughly half of overall revenues, making PepsiCo unique in the consumer staples universe. The company’s international business, which accounts for about 40% of total net revenues, continues to deliver consistent mid-single-digit growth, with strong market share gains in two-thirds of its top beverage markets and broad-based strength in permissible snacking.
PepsiCo’s growth engine is powered by relentless innovation and digital acceleration. Its transformation agenda emphasizes portfolio reshaping, automation and AI-led efficiency, including a leaner SKU base and optimized price-pack architecture to cater to affordability and premiumization trends alike. In beverages, the company’s focus on functional and health-oriented innovations, like Pepsi Prebiotic, Gatorade Lower Sugar, and Propel Protein Water, is expanding its reach among wellness-conscious consumers.
The company’s global snacks revamp, with offerings like Lay’s and Doritos NKD (no artificial colors or flavors), underscores its effort to future-proof its portfolio and appeal to next-generation shoppers seeking transparency and nutrition without compromise.
PepsiCo delivered nearly 3% reported net revenue growth in third-quarter 2025, marking its 18th consecutive quarter of resilient international momentum. Despite a three-percentage-point EPS headwind from tariffs and global input costs, the company’s cost-reduction programs, sourcing flexibility and digital productivity drive are offsetting inflationary pressures. As PepsiCo continues to modernize operations and sharpen execution, it is positioning itself as an agile, innovation-driven leader, well-equipped to sustain long-term growth and shareholder value in a volatile trade and tariff environment.
Price Performance & Valuation of KO & PEP
Shares of PepsiCo have moved higher in the past three months, buoyed by strong third-quarter 2025 results and an encouraging earnings outlook. The company witnessed accelerated net revenue growth compared with the previous quarter, underscoring its ability to perform amid a complex operating environment. International momentum remained a key strength, while North America showed signs of recovery through sharper execution and improved competitiveness across major subcategories and channels.
In contrast, Coca-Cola’s stock has witnessed muted growth in the same period despite a solid third-quarter performance and steady global execution. The divergence highlights shifting investor sentiment, with growing optimism around PepsiCo’s operational turnaround and margin-improvement efforts. In the past three months, PEP shares have rallied 7%, while the KO stock has risen 2.3%.
Image Source: Zacks Investment Research
From a valuation standpoint, PEP currently trades at a lower forward price-to-earnings (P/E) multiple of 17.88X compared with Coca-Cola’s 21.94X, making it more attractively priced, driven by its earnings and diversified revenue stream.
Image Source: Zacks Investment Research
The PEP stock looks cheap from a valuation perspective. Moreover, its diversity, pricing power and innovation engine make it a compelling long-term holding, especially for those seeking both growth and downside protection.
Coca-Cola does seem pricey. However, its valuations reflect its strong brand equity, disciplined capital strategy and exposure to high-growth regions, making it a resilient pick for long-term portfolios. If the company sustains its execution, the premium may be warranted.
How Does Zacks Consensus Estimate Compare for PEP & KO?
PepsiCo’s EPS estimates for 2025 and 2026 moved up 0.1% and 0.2%, respectively, in the last seven days. PEP’s 2025 revenues are projected to increase 1.8% year over year to $93.5 billion, while EPS is expected to decline 0.6% year over year to $8.11.
Image Source: Zacks Investment Research
Coca-Cola’s EPS estimates for 2025 and 2026 have moved up by a penny in the past seven days. KO’s 2025 revenues and EPS are expected to increase 2.8% and 3.5% year over year, respectively, to $48.4 billion and $2.98 per share.
Image Source: Zacks Investment Research
PEP vs. KO: Who Has the Edge?
In the ultimate face-off between Coca-Cola and PepsiCo, the scale tilts toward PepsiCo, thanks to its stronger near-term performance, attractive valuation and growth potential. The company’s diversified portfolio, spanning beverages and snacks, offers multiple profit engines and resilience against category-specific slowdowns. Its recent rally underscores investor confidence in the brand’s revitalized innovation agenda, digital transformation and operational efficiency.
Meanwhile, Coca-Cola continues to excel in core beverage dominance and brand legacy but lacks the same breadth of growth drivers that PepsiCo’s multi-category structure provides.
PepsiCo’s cheaper valuation relative to its rival amplifies its investment appeal, particularly given its consistent international momentum and robust execution in North America. The recent upward revision in earnings estimates reflects optimism about its capacity to sustain profitability and margin expansion, even amid tariff and supply-chain pressures. In this beverage duel, PepsiCo emerges as the more balanced, growth-oriented choice, blending value, innovation and long-term shareholder potential.
PEP currently carries a Zacks Rank #2 (Buy) and KO has a Zacks Rank #3 (Hold). You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.
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The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.

Coca-Cola Vs. PepsiCo: Which Beverage Giant is Poised for the Top Spot?

The Procter & Gamble Company PG reported solid first-quarter fiscal 2026 results, with sales and earnings per share (EPS) surpassing the Zacks Consensus Estimate and improving year over year. Results benefited from growth across all segments, led by improved pricing and a favorable mix.
Procter & Gamble’s core EPS of $1.99 per share increased 3% from the year-ago quarter and beat the Zacks Consensus Estimate of $1.90. Currency-neutral core EPS also rose 3% year over year.
The company has reported net sales of $22.4 billion, up 3% year over year. Sales also surpassed the Zacks Consensus Estimate of $22.2 billion. On an organic basis (excluding the impacts of acquisitions, divestitures and foreign exchange), sales rose 2% year over year, driven by an increase of 1% each from pricing and favorable mix, while organic volume had a neutral impact in the reported quarter.
Procter & Gamble Company (The) Price, Consensus and EPS Surprise
Our model predicted year-over-year organic revenue growth of 3.2% for the first quarter of fiscal 2026, with a 1.4% gain from pricing, a 0.8% rally in the product mix and a 1% rise in the organic volume.
The company’s net sales growth for the fiscal first quarter was led by a year-over-year increase of 1% each in the Baby, Feminine & Family Care and Fabric & Home Care, 5% in Grooming, 2% in Health Care and 6% in Beauty segments. Organic sales rose 6% for the Beauty, 3% for Grooming and 1% for Health Care segments. Meanwhile, organic sales were flat for the Baby, Feminine & Family Care and Fabric & Home Care segments.
Shares of PG rose 2.5% in the pre-market session following the strong first-quarter fiscal 2026 results and a decent outlook for fiscal 2026. This Zacks Rank #4 (Sell) company’s stock has lost 3.8% in the past three months compared with the industry’s 6.2% decline.
Image Source: Zacks Investment Research
Procter & Gamble's Q1 Margins
The core gross margin declined 50 basis points (bps) year over year to 51.5%, while the reported gross margin fell 70 bps. Currency rates aided the gross margin by 0.2%. The currency-neutral core gross margin contracted 30 bps to 51.7%. Gains from gross productivity savings of 140 bps, pricing benefits of 50 bps and 20 bps from rounding and other items were more than offset by 100 bps of adverse product mix, 70 bps of product reinvestments and a 70-bps increase in costs from tariffs and commodities.
Core selling, general and administrative expenses (SG&A), as a percentage of sales, declined 40 bps from the year-ago quarter to 24.9%. The currency-neutral core SG&A rate contracted 70 bps to 24.6%. This decline was backed by 90 bps of productivity savings, 40 bps of net sales growth leverage and 10 bps of rounding and other items. These were partly offset by 70 bps of reinvestment costs.
The core operating margin was flat with the prior year at 26.7%. On a currency-neutral basis, the operating margin increased year over year by 40 bps to 27.1%, mainly aided by the positive currency effect. The operating margin included gross productivity savings of 230 bps.
We expected the core gross profit margin to decline 50 bps year over year in the fiscal first quarter to 51.5%. The core SG&A expense rate was anticipated to increase 20 bps, whereas our core operating margin projection suggested a decline of 80 bps to 25.9%.
Peek Into PG's Financials
Procter & Gamble ended first-quarter fiscal 2026 with cash and cash equivalents of $11.2 billion, long-term debt of $24.3 billion, and total shareholders’ equity of $53.6 billion.
In the first-quarter fiscal 2026, the company generated an operating cash flow of $5.4 billion. The adjusted free cash flow was $4.9 billion for the three months ended Sept. 30, 2025, with an adjusted free cash flow productivity of 102%.
Procter & Gamble returned $3.8 billion of value to its shareholders in the fiscal first quarter, including $2.55 billion in dividend payouts and $1.25 billion in share buybacks.
PG's Fiscal 2026 Guidance
For fiscal 2026, Procter & Gamble anticipates delivering another strong year of organic sales growth, core EPS growth and sturdy adjusted free cash flow productivity. Hence, the company reiterated its guidance for fiscal 2026.
The company expects year-over-year all-in sales growth of 1-5% for fiscal 2026, while organic sales are expected to be flat to up 4%. Its all-in sales are expected to include a 1% benefit from currency rates, as well as from acquisitions and divestitures.
PG envisions net EPS growth of 3-9% in fiscal 2026 compared with the fiscal 2025 GAAP EPS of $6.51. The company expects core EPS of $6.83-$7.09, suggesting flat to 4% year-over-year growth from the fiscal 2025 core EPS of $6.83. The core EPS, at a mid-point of $6.96, implies 2% year-over-year growth. PG estimates fiscal 2026 core effective tax rate of 20-21%.
The company predicts a commodity cost headwind of $100 million after tax for fiscal 2026. It also expects higher costs from tariffs of $400-million, after-tax. It anticipates an after-tax headwind of about $250 million, primarily due to modestly higher net interest expenses and an increased core effective tax rate compared to the previous year. However, this is expected to be partially offset by a favorable foreign exchange tailwind of $300 million after tax. In total, these factors are projected to represent a net headwind of roughly 19 cents per share for fiscal 2026.
Procter & Gamble expects capital expenditure to be 4-5% of net sales in fiscal 2026. Adjusted free cash flow productivity is estimated to be 85-90%. The company intends to pay out dividends worth $10 billion and repurchase shares worth $5 billion in fiscal 2026.
Here’s How Better-Ranked Stocks Fared
Newell Brands Inc. NWL is a global manufacturer and marketer of consumer and commercial products. The company currently carries a Zacks Rank #2 (Buy). You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.
Newell Brands delivered a trailing four-quarter earnings surprise of 25%, on average. The Zacks Consensus Estimate for NWL’s current financial-year sales indicates a decline of 2.7% from the year-ago numbers.
PepsiCo Inc. PEP is one of the leading global food and beverage companies. The company currently carries a Zacks Rank #2.
The Zacks Consensus Estimate for PEP’s 2025 sales indicates growth of 1.7% from the previous year’s reported figures. PepsiCo has a trailing four-quarter average earnings surprise of 1.12%.
Ollie's Bargain Outlet OLLI is a value retailer of brand-name merchandise at drastically reduced prices. It presently carries a Zacks Rank #2.
The Zacks Consensus Estimate for Ollie's 2025 sales and EPS indicates growth of 16.4% and 16.5%, respectively, from the prior-year reported levels. OLLI delivered a trailing four-quarter earnings surprise of 4.2%, on average.
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PepsiCo, Inc. (PEP) : Free Stock Analysis Report
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.

Procter & Gamble Q1 Earnings & Sales Beat on Solid Pricing & Mix

The Coca-Cola Company KO delivered a resilient third-quarter 2025 performance, with North America emerging as a bright spot in an otherwise mixed global landscape. Despite pressure on lower and middle-income consumers and softer traffic across channels, the region saw sequential improvement in volumes for the second consecutive quarter.
Volume was flat overall but strengthened from the first half of 2025, while value share gains and strong revenue growth underscored the success of Coca-Cola’s portfolio strategy. The company’s focus on affordability through smaller packs and its push into premium segments like Topo Chico, smartwater and fairlife, now a $1-billion brand, helped strike a balance between value and premiumization.
Globally, momentum was uneven. Latin America and the Asia Pacific faced macroeconomic and weather-related headwinds, particularly in Mexico, India and parts of ASEAN. However, Coca-Cola continued to gain value share in most markets and held or expanded share across all geographic segments. In Europe, consumer polarization echoed North American trends, with premium consumers maintaining spending even as lower-income households tightened budgets.
Coca-Cola’s broader growth playbook, anchored in disciplined pricing, marketing transformation and innovation, continued to pay off. The company reported 6% organic revenue growth and 6% comparable EPS growth despite currency pressures. Nonetheless, management acknowledged that sustaining volume gains globally will depend on sharper local execution, affordability initiatives and refranchising benefits in markets like India and Africa.
As Coca-Cola’s North American business regains momentum, the challenge ahead is clear: turning regional resilience into a more synchronized global growth story.
How Are KO’s Rivals PEP & MNST Faring in North America?
PepsiCo, Inc. PEP and Monster Beverage Corporation MNST, Coca-Cola’s key rivals in the North American beverage arena, are charting distinct paths as shifting consumer spending, pricing strategies and category dynamics reshape the competitive landscape.
PepsiCo saw North America drive its third-quarter 2025 rebound, with beverage volumes improving and flagship brands like Pepsi Zero Sugar, Mountain Dew and poppi fueling growth. PBNA delivered 2% organic revenue growth, supported by innovation and strong hydration sales from Propel. While international markets grew steadily despite weather disruptions, the key question remains whether PepsiCo can extend this renewed North American strength into broader global momentum.
North America once again powered Monster Beverage’s solid second-quarter 2025 performance, as strong demand for the Ultra family and new flavor innovations drove double-digit growth. The United States and Canada led with resilient category momentum, supported by effective pricing and a loyal consumer base. However, global markets, while improving, still trail the pace. With EMEA and APAC showing healthy expansion, the question remains whether international markets can match North America’s robust volume trajectory.
The Zacks Rundown for Coca-Cola
KO shares have risen 12.4% year to date compared with the industry’s growth of 7.1%.
Image Source: Zacks Investment Research
From a valuation standpoint, Coca-Cola trades at a forward price-to-earnings ratio of 22.07X, significantly higher than the industry’s 18.36X.
Image Source: Zacks Investment Research
The Zacks Consensus Estimate for KO’s 2025 and 2026 earnings implies year-over-year growth of 3.1% and 8.2%, respectively. Earnings estimates for 2025 have been unchanged in the past 30 days, while estimates for 2026 have been southbound.
Image Source: Zacks Investment Research
Coca-Cola currently carries a Zacks Rank #3 (Hold).
You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.
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With strong earnings growth and an expanding customer base, it's positioned to feed the rampant demand for Artificial Intelligence, Machine Learning, and Internet of Things. Global semiconductor manufacturing is projected to explode from $452 billion in 2021 to $971 billion by 2028.
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CocaCola Company (The) (KO) : Free Stock Analysis Report
PepsiCo, Inc. (PEP) : Free Stock Analysis Report
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.

North America Lifts Coca-Cola's Volume: Can Global Momentum Catch Up?

Key Points
Conagra Brands sports a 7.5% forward dividend, and could stage a major comeback as the macro situation improves and a company turnaround takes shape.
Investors may be critical of Keurig Dr. Pepper's latest acquisition plans, but the market's negative overreaction could work to your advantage.
Target is once again the subject of buyout rumors, but shares still have major upside, even if the big box retailer ends up staying a public company.
So far, issues ranging from trade war concerns, the U.S. federal government shutdown, and the Federal Reserve's next moves with interest rates have all weighed on the performance of the broad market, consumer goods stocks included.
However, while uncertainty still runs high, there are plenty of consumer stocks that are now oversold. Investors have overreacted to negative macro and company-specific news.
Where to invest $1,000 right now? Our analyst team just revealed what they believe are the 10 best stocks to buy right now. Continue »
While some of these oversold consumer stocks could become value traps, there are plenty that could bounce back in a big way, as the companies make improvements and as subsequent results prove better than feared.
The following three consumer goods stocks fall firmly in that category.
1. Conagra Brands pays you while you wait for the turnaround
Conagra Brands (NYSE: CAG) is a packaged foods company, best known for its brands like Duncan Hines, Healthy Choice, and Slim Jim. Like many of its publicly traded competitors, negative sentiment has placed pressure on shares. Blame this on concerns such as inflationary pressures, low growth, and high debt.
But Conagra, at a forward price-to-earnings (P/E) ratio of 10.9, trades a discount to many of these peers, including General Mills, which trades at a forward P/E of 13.8.
In time, Conagra's turnaround efforts like asset sales could lower debt and boost profits, which in turn could narrow the valuation gap. While waiting for a rebound, you can earn a steady return, from the stock's 7.5% forward dividend yield.
2. Concerns about Keurig Dr. Pepper's latest acquisition may be overblown
Keurig Dr. Pepper (NASDAQ: KDP) is another consumer goods stock under pressure due to negative market sentiment. However, in the case of this beverage giant, key concerns are company-specific. That is, investors aren't liking Keurig Dr. Pepper's plans to buy coffee giant JDE Peet's for $18 billion, then split into two independent companies.
However, this complex transaction could both unlock and create value. Trading for less than 12 times forward earnings, Keurig Dr. Pepper sells at a discount to beverage industry peers, mostly on uncertainty regarding coffee commodity prices.
Split into two, though, the soft drink segment could rerate to a forward multiple of 15 to 20, on par with Coca-Cola and Pepsico. The coffee business will likely sport a lower valuation, but this could still result in a net gain for investors prior to the split-up. The JDE Peet's deal could also produce $400 million in cost synergies, creating further value for investors.
3. Target could rebound in a big way, even if a takeover bid fails to emerge
Recently, I have discussed how retailer Target (NYSE: TGT) has been the subject of private equity takeover rumors yet again. I wouldn't buy Target for this reason, but there is another strong reason to buy it.
Why? There's high upside potential, just from Target staying independent and successfully executing a turnaround. Moving forward, lower interest rates could help ease issues like weak consumer demand. At the same time, efforts to improve the customer experience could also enhance profitability.
In turn, the stock could surge on both earnings growth as well as valuation expansion. In the meantime, you can collect a 5% annual yield from this Dividend King. Target's dividend has increased 56 years in a row.
Should you invest $1,000 in Conagra Brands right now?
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Thomas Niel has no position in any of the stocks mentioned. The Motley Fool has positions in and recommends Target. The Motley Fool has a disclosure policy.
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.

3 Consumer Goods Stocks That Are Screaming Deals Right Now

In this podcast, Motley Fool analysts David Meier, Tom King, and Tim Beyers:
Discuss the failures that led to the AWS outage this week and which companies and services were impacted.
Debate whether companies have become too dependent on AWS and its peers, especially when virtually all the in-demand AI services we're banking on are hosted in these clouds.
Play another game of Faker or Breaker with three companies impacted by the AWS outage.
Don't wait! Be sure to get to your local bookstore and pick up a copy of David's Gardner's new book -- Rule Breaker Investing: How to Pick the Best Stocks of the Future and Build Lasting Wealth. It's on shelves now; get it before it's gone!
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Tim Beyers: WTH at AWS. We need to talk about computing in the Cloud fools. You're listening to Motley Fool Money. Welcome Fools. I'm your host, Tim Beyers. With me are longtime fools, David Meier, Tom King. It's great to have you both here. So, guys, just a few hours ago, recording on Monday morning, Amazon Web Services suffered a pretty catastrophic outage in one of the Eastern US regions. And businesses that offer essential digital services have taken a hit here. This isn't the first time we've seen AWS go down, and it's not going to be the last, especially with the scale of the AI buildout of which AWS plays a pretty big part. So quick reactions here first. Tom, I'll start with you. Are you at all surprised by this news? Why or why not?
Tom King: I'm not. This is a complicated system, and in a complicated system, little things can compound. So it's almost inevitable that something like this would happen. It's very similar to what happened with CrowdStrike last year. Remember when CrowdStrike caused that big outage. It recovered from that. It got on. It is the cost of how things are these days.
Tim Beyers: Yeah. I mean, that's a fair point. I mean, these things are made up of, we've seen these commercials before, Dave, where you have the dominoes all lined up. You hit one of those dominoes and they all start falling. What's your reaction to this?
David Meier: To be frank? I'm surprised it's not happening more. Really, really think about this. Something bad happened there was an outage for a few hours. It's slowly everything's getting back online. Everything's back up and running. This is a massive system.
Tim Beyers: Yeah.
David Meier: The fact that it has the reliability that it does is an engineering marvel. So yeah, like, I get it. It's disappointing. Thank goodness it happened at 3:00 A.M. Eastern Time. I mean, I don't know exactly how much traffic is flowing through there. I remember in my backyard in Northern Virginia, 35% of the world's Internet traffic used to flow through my backyard at peak times. So I'm not surprised, but quite frankly, I'm impressed how quickly they recovered it. I'm surprised it doesn't happen more. Maybe it does and we just don't feel it.
Tim Beyers: I don't know if there is a Jeff Bezos shakes head approvingly meme, but I think you'd be getting that right now, Dave. I mean, it is interesting. So let's talk about this. AWS going dark, again, this has happened many times. Here's what we know. AWS, like you said, Dave, went offline around 3:00 A.M. Eastern Time for what appears to have been a couple of hours. The rolling effects could continue, and we are recording this on a platform called Riverside. As soon as I logged in, we got a nice little notice from Riverside saying, Hey, AWS went down and services may be affected. I'm paraphrasing there. So lots of companies have been affected here. At issue were some errors in the company's DynamoDB database. So let me just briefly explain what this is. Amazon's primary database is DynamoDB. It's a transactional database, and it's most famous for being the homegrown Amazon database that they use really to process transactions. So this is meant to be a highly resilient, highly replicated database throughout the Amazon and the Amazon Web Services ecosystem. This is what they've built their business on. What it was subject to, we don't know if it was an attack or just an error. It was subject to an outage in the DNS system, the domain name server system. When that happens, when the DNS goes out, and you probably have heard of this, like a distributed denial of service attack, that's meant to attack the DNS. If you do that, if you take down the DNS, it's like you having your phone and suddenly all your contacts, like, you can't press to call anybody because your contacts are frozen. The phone book in your phone just no longer works. You can't call anybody. When the DNS is down, that's what happens. The DNS determines when you say google.com, there's an underlying IP address that's a series of numbers, and it translates google.com to those numbers. When that's down, you can't do that, which means the Internet just stops functioning. So, this appears to be what happened here. I'm curious because the affected companies include Coinbase, Robinhood, Roblox, punch of others, two questions from me. I'll start with you this time, Dave. You said, effectively, you're surprised this isn't happening more. But I'd like to gauge your concerns. Are you at all concerned with how much influence AWS has over modern compute? And are we creating any kind of single point of failure here?
David Meier: So the answer is yes, there is concern.
Tim Beyers: Okay.
David Meier: I don't know how much I should be concerned, though, because this is the direction that everything is going. Many years ago, I was talking with some folks, and I'm like, When the Internet came up, we are always going to be going more digital, not more analog. AWS Azure Google Computing Platform, GCP, they all sprung up, and they all provide these types of services. So I don't think we're going to a single point of failure. There's not going to be one company that always does everything for everyone. But we don't have nearly as many companies doing this as when the Internet was first being created. There aren't as many IP companies things like that. So I don't know. You know, it's just like I said, it's kind of one of those things where it's sort of the cost of doing business. If you're not going to own your own hardware and manage your own hardware, you're essentially paying for the risk of someone else having an issue and your business being affected.
Tim Beyers: Yeah. I mean, Tom, I'm curious how you think about this because this is this is an issue. Digital businesses need to have that digital infrastructure to do business, and that infrastructure is now largely outsourced. So how do you think about this?
Tom King: It is one of the downsides that we must live with. We gained many advantages from the Cloud providers, and this is one of the downsides that if one of them breaks, they have a large impact on a lot of people. I'm sure you guys remember you've been around long enough to remember the days when you would have cold rooms in your office building that were stacked with computing equipment to deliver your website and the things that you sold over the Internet. We don't have those anymore. We outsource that to Google or Microsoft or Amazon, and we don't have to worry about keeping it working or keeping the equipment cold. Yes, it's one of the disadvantages of our current system, but we've gained many other advantages, I think is the way to think about it.
Tim Beyers: I love that you called server rooms, cold rooms.
Tom King: When I lived in Africa, you would go into the server room to cool down because of one of the only cold rooms in the office building.
Tim Beyers: Nice. I love that you called it that because you go into a server room, and, yes, it's intending to be cold. Get too close to a server, you stop being cold real fast. They run they run really hot. But I love that you called them that. Let's talk about risk here, though, Tom, because I think you're both right. So let's call this the cost of doing business. But how would you assess risk? Because AI is here. The AI buildout is going to continue, and it's going to largely depend on these cloud infrastructure companies quite a lot. Let's call it GPU hoarding. They're going to do the most GPU hoarding. They are going to provide the infrastructure. When the digital assistance you need is housed someplace else that we can't see and it's controlled by somebody else, how should we think about companies like Coinbase, Robinhood, and Roblox? Do they need to be valued with a higher risk premium because of their dependence on something like AWS? Tom, I'll go to you first on this.
Tom King: I don't think so. I think that companies will take the option that costs them the least, both in terms of money and time and headaches and so on. So if you really care about resiliency of always having your services available over the Internet, you would invest the money and the time and everything else to have your own servers. The reason they choose to go with one of the Cloud providers is because they gain many different advantages. It's probably cheaper for them. It's less work for them. It expands to fill the needs. There is no limit to how much demand their service can supply so that you don't, there's no limit on the hardware. Amazon handles that problem or Google or Microsoft. So I think companies are always going to make a decision that is best for them in their own unique circumstances. No, I don't think that any kind of additional risk needs to be considered here.
Tim Beyers: Dave, what do you think?
David Meier: I agree with what Tom was saying. I don't think there's any additional risk premium that's needed. Part of the reason is there's actually a market that's determining where people will spend their money. We don't have a single point of failure. This isn't a monopoly. If this behavior or if these incidences grew in frequency, what would happen? People would switch.
Tim Beyers: Yeah.
David Meier: So there's actually a massive incentive for these companies to make sure that the systems are reliable. Again, it happened early in the morning. There was an immediate response. It actually got back online pretty quickly. If it was that serious, they responded quickly, and I'm sure that they've learned, and we'll see what happens going forward. But I actually think the market is what controls the risk? Yeah, I realize it would be a pain to switch, but there are options available for substitution.
Tim Beyers: There are companies that are switching. Up next, we're going to talk about some fakers and some breakers. It's the faker or breaker game. You're listening to Motley Fool Money.
Fools, we're back. Thank you for listening to Motley Fool Money. We have a wide range of companies that were affected by the AWS outage today. Let's talk about three, guys. We're going to talk about three, and let's get your take on them. Are these AWS dependent businesses fakers or are they breakers? As a reminder, a faker is a company that shows outstanding growth for a brief but unsustainable period of time. They look good enough. They look enough like breakers to small fool some investors. So, Tom, coming to you first here. Faker or breaker, Coinbase.
Tom King: I would probably say faker because it's heavily dependent on the level of speculative activity in the markets, which goes up and goes down. When it goes down, it really, really hurts the people that are involved. So I would say faker.
Tim Beyers: I mean, this is an interesting one because the cryptomarkets are getting more and more real, more and more interesting. There is more real dollars flowing in particular into Bitcoin. However, this is probably one of the most rampant areas for fraud. With that, I'm going to give you Number 2 here, Dave, because it's a related company, Robinhood, which has made a lot of money on orchestrating crypto. So faker breaker, Robinhood.
David Meier: So Robinhood is not for me as an investor.
Tim Beyers: All right. I like you that you're qualifying already, but keep going.
David Meier: Well, we work for the Motley Fool. We tend to think about things differently. Robinhood is a type of competitor. I will say that this is still a breaker. The reason is is because you do have founders who had their vision. They knew what they wanted to do, and they were executing on it. The other thing is, they're serving a big market and one that's growing. And the other thing that in order to serve those markets, they continue to bring new products and services. So they have some sort of ability that they seem to be turning into an advantage to know, Hey, this is what our consumers want. So more people are coming, more people are staying engaged. Yes, whether it was free trades or now it's crypto or now it's prediction markets. Again, not for me. But that's OK. There's a lot of companies out there that don't serve me. But I see this company as having a lot of the traits of a rule breaker.
Tim Beyers: I'm going to bring up the third one, and I'm going to ask you both for a super quick take on this because I think it's a company some of maybe two of us. I know I'm going to be using this company later this week in order to go to Fool fest in DC, and that is Lyft. So faker or breaker Tom Lyft not Uber, Uber look alike.
Tom King: So Lyft is pretty much concentrated in the United States. Uber took the global expansion option. I think that Uber's size gives it certain advantages over Lyft. I know from being a regular or at least until a few years ago, a regular user of both that Uber was always cheaper and always quicker to get to you. They also probably lose more money than Lyft or were back then at the time. I mean, I think, it's hard to say, but, I mean, there has to be a Lyft because Uber can't have this market entirely to itself. Then we'd really be in trouble.
Tim Beyers: Is what you're saying. It passes the Cola test. It is the Pepsi to Uber.
Tom King: It is, yes.
Tim Beyers: So does that make it a breaker for you or it's still not enough?
Tom King: It's still not enough, but I think it's an important company. It has to exist to compete with Uber.
Tim Beyers: Last word, Dave, faker or breaker.
David Meier: Faker is hard, but I have to push in that direction. It's interesting. If I remember my history correctly, Lyft started before Uber.
Tim Beyers: I don't know.
David Meier: But I think that's correct. I think it was called Zimcar and then it morphed and then Lyft was created out of Zimcar. But it got usurped by Uber. Uber just went on, we're going to gobble up the world. We're going to take this market share strategy, and Uber has done a good job of rebounding. But I don't see it as something that can really take serious market share going forward. It'll still grow. It still provides an excellent service. It's the one I go to. I don't go to Uber. But, no, I don't think I can call it rule breaker. But faker is tough. Faker is harsh, in my opinion.
Tim Beyers: This is the game Dave, you got to make a call.
David Meier: No, I'm going with Faker, but I'm I'm giving you the little caveat.
Tim Beyers: Fair enough. Up next, we preview tomorrow. There's some interesting stuff happening. Speaking of prediction markets, there's your hint. You're listening to Motley Fool Money.
Back with a preview for tomorrow, you will have Emily Flippen and Sanmeet Deo and Jason Hall talking about prediction markets. What are they? How are they approved with regulators? How much money is flowing through them now? How can you invest in them? So, if prediction markets are a legitimate market opportunity, are they based on skill? Is it just another form of gambling? This is everything you're going to hear from Emily, Sanmeet and Jason tomorrow. But for today, I think we've concluded here guys, at AWS massive down today for a little period of time, probably going to be down again in the future. Doesn't mean that this is one that we should get too over hyped about, but a little bit annoying. But that's it for today.
Thanks to David Meier and Tom King for joining me today, guys. As always, people on the program may have interest in the stocks they talk about, and the Motley Fool may have formal recommendations for or against. So don't buy or sell stocks based solely on what you hear. All personal finance content follows Motley Fool. Editorial standards and is not approved by advertisers. Advertisements are sponsored content and provided for informational purposes only. To see our full advertising disclosure, please check out our show notes. That's it for Motley Fool Money Today. Again, please be sure you tune in for Emily, Sanmeet and Jason tomorrow for Dave Meier and Tom King, for our engineer, Dan Boyd and our producer, Anna, Chuck and Lou. I'm Tim Beyers. You've been listening to Motley Fool Money. Thanks and see soon Fools. Move on.
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David Meier has no position in any of the stocks mentioned. Thomas King, CFA has positions in Alphabet, Amazon, CrowdStrike, Microsoft, Roblox, and Uber Technologies. Tim Beyers has positions in Alphabet and Amazon. The Motley Fool has positions in and recommends Alphabet, Amazon, Bitcoin, CrowdStrike, Microsoft, Roblox, and Uber Technologies. The Motley Fool recommends Coinbase Global and Lyft and recommends the following options: long January 2026 $395 calls on Microsoft and short January 2026 $405 calls on Microsoft. The Motley Fool has a disclosure policy.
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.

AWS Goes AWOL: Are We Too Dependent on the Cloud?

Checking In on The Trade Desk, Bristol Myers Squibb, and Other Stocks

Soft drink bellwether Coca-Cola Company KO reported earnings on Oct. 21, 2025, and Zacks Rank #2 (Buy) PepsiCo Inc. PEP reported on October 9. Both giants came up with upbeat third-quarter 2025 earnings, auguring well for the consumer staples sector.
Coca-Cola beat on both top and bottom lines before the market opened on October 21 but said demand for drinks is still soft, as quoted on CNBC. Shares surged about 4% on the day. PepsiCo shares also rallied about 8.7% after reporting earnings results on early October. Let’s delve a little deeper.
Coca-Cola Beats Overall, Retains View
Coca-Cola’s earnings results have benefited from enhanced pricing across markets. The latest results once again highlight the strength of KO’s resilient, all-weather strategy. Its third-quarter 2025 comparable earnings per share (EPS) of 82 cents were up 6% year over year.
Comparable EPS beat the Zacks Consensus Estimate of 78 cents.Revenues of $12.46 billion grew 5% year over year and topped the Zacks Consensus Estimate of $12.43 billion. Globally, Coke witnessed the largest volume growth from its water, sports, coffee, and tea segments.
The company reiterated its full-year forecast. Going forward into 2026, Coca Cola expects slight currency tailwind to both its revenue and comparable earnings, while for fourth-quarter 2025, comparable revenues are expected to include a minimal currency tailwind.
PepsiCo Reports Above Expectations; Maintains Guidance
PepsiCo’sthird-quarter 2025 revenues and EPS came ahead of the Zacks Consensus Estimate. Net revenues of $23.94 billion rose 2.6% year over year and beat the Zacks Consensus Estimate of $23.87 billion. PEP’s third-quarter core EPS of $2.29 surpassed the Zacks Consensus Estimate of $2.27 but declined 0.9% year over year.The company also reiterated its full-year outlook.
Beverage Giants Respond to Price-Sensitive & Health-Conscious Consumers
Coke CEO James Quincey said low-income U.S. consumers are cutting back, with more sales coming from dollar stores, as mentioned on CNBC. Coke is responding to this trend with smaller, “affordable” options like mini cans. Similarly, PepsiCo CEO Ramon Laguarta pointed to softer volumes as the company moves to smaller packaging to attract price-conscious buyers – a move that trims volume but boosts revenues, per another CNBC article.
PepsiCo is also overhauling its snack lineup with healthier oils and ingredients under pressure from the “Make America Healthy Again” movement. It’s also cutting prices on multipacks and single-serve snacks to win back budget-conscious consumers, CNBC noted.
ETFs in Focus
Against this backdrop, investors may be interested in knowing about the Coke and PepsiCo-heavy ETFs along with their stocks. This is because an ETF approach offers investors the opportunity to bet on both stocks.
Coca-Cola and PepsiCo each have solid exposure to funds like Consumer Staples Select Sector SPDR Fund XLP, Fidelity MSCI Consumer Staples Index ETF FSTA and Vanguard Consumer Staples ETF VDC.
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The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.

Indicator	TTM Median
P/E	19.12 20.90
Price/Sales	1.96 0.83
P/B	9.64 1.82
P/FCF	26.73 19.11

Indicator	TTM Median
ROE	49.39 13.30
ROA	9.34 5.85
ROI	16.46 9.19
Net Worth	178.92 1.38
Quick Ratio	0.66 0.86
Current Ratio	0.83 1.37

Indicator	TTM Median
Net Profit Margin	10.24 5.78
Operating Margin	13.93 9.26
Gross Margin	54.74 34.60
Return on tangible equity	0.00 24.12

Indicator	TTM Median
EPS	1.48 0.51
EPS Forecast	1.50 0.41
Revenue	17.92B 141.00M
Gross Profit	9.99B —
EBITDA	3.41B —

PepsiCo, Inc.

TTM metrics for the latest quarter under IFRS and their historical dynamics

Valuation

Debts

Efficiency

Other ratios

Revenue