Get the Weekly Intelligence Brief — top committee picks every Sunday.
NASDAQ · STOCK

PepsiCo

PEP Consumer Defensive Unknown Updated August 01, 2026
$139.60
52W $133.73 – $171.48
56/100
$190.64B
18.3
0.37
AI Committee Verdict
Watch
Conviction: Contested · 43% agreement · 7 analysts
+9.0%
-0.7%
13.70:1
Contested

Is PEP Bullish or Bearish?

Mixed. Innellis AI committee rates PepsiCo (PEP) Watch with a composite score of 56/100 , based on 7 analysts with 43% agreement. Last updated August 01, 2026.

What Would Change This View

Upgrade to Buy
Requires a committee score of 60.0 — +4.00 from today. Applies on the first day at or above the line; upgrades are never dampened.
Downgrade to Reduce
Requires the score to fall below 40.0 — -16.00 from today. The band boundary is 45.0, but a one-step downgrade must clear a further margin first. A score oscillating around the line should not change the rating every night.

Executive Summary

The committee is genuinely divided. Growth Analyst sees a compelling case — eps growing 38.9% yoy. Risk Analyst remains cautious — high leverage (debt-to-equity 2.41) amplifies downside in a stress scenario. This disagreement is itself the signal — the setup is not clean in either direction.

Bull & Bear Case

Bull Case
  • ROE of 50.2% shows genuine earnings power backing the valuation — Value
  • Dividend yield of 4.2% pays you to wait — Value
  • EPS growing 38.9% YoY — Growth
  • Quarter-over-quarter growth rate is ACCELERATING, not just positive — Growth
  • MACD histogram positive -- bullish momentum — Technical
  • Market regime is bullish (Bull market -- normal position sizing) — Macro
Bear Case
  • Price-to-book of 9.7x prices in significant intangible value — Value
  • Debt-to-equity of 2.41 adds balance-sheet risk to the value case — Value
  • High leverage (debt-to-equity 2.41) amplifies downside in a stress scenario — Risk
  • Current ratio of 0.85 is tight -- limited short-term liquidity cushion — Risk
Both cases are generated from quantitative data signals, not qualitative or forward-looking judgement. They summarise what the numbers say today.
Price History (6M)

AI Investment Committee

Committee Consensus As of August 01, 2026
Overall Committee Score
56/100
Agreement
43%
Analysts
7
Conviction
Contested
Sector Rank
Top 38%
of 50 Consumer Defensive peers
Value Analyst neutral
50 / 100 · High confidence
Fair value -- neither a bargain nor obviously overpriced
+ ROE of 50.2% shows genuine earnings power backing the valuation
− Price-to-book of 9.7x prices in significant intangible value
Growth Analyst bullish
70 / 100 · High confidence
Strong, accelerating growth with consistent execution
+ EPS growing 38.9% YoY
Technical Analyst neutral
58 / 100 · High confidence
Mixed or range-bound price action
+ MACD histogram positive -- bullish momentum
Risk Analyst bearish
32 / 100 · Moderate confidence
Elevated risk from leverage, volatility, event exposure, or portfolio concentration -- size accordingly
− High leverage (debt-to-equity 2.41) amplifies downside in a stress scenario
Macro Analyst bullish
70 / 100 · Moderate confidence
Macro backdrop is supportive of risk assets generally, and this name's beta works in its favor
+ Market regime is bullish (Bull market -- normal position sizing)
News Analyst bullish
66 / 100 · Low confidence
News flow and recent filings/analyst actions are net positive
+ News sentiment is positive (+0.27 across 43 articles, 14d)
Portfolio Manager neutral
45 / 100 · High confidence
Portfolio-level factors are mixed -- worth a deliberate sizing decision, not a default-size position
+ Portfolio position concentration is currently healthy
− Sector concentration is already high (HHI 2535.03)
Open Full Terminal →

Investment Thesis Evolution

Committee score moved marginally from 56.6 to 56.0.

Analyst-level changes:
  • Macro Analyst: stance neutral->bullish; score 58->70 (+12).
  • News Analyst: score 70->66 (-4); +1 bullish signal(s).
  • Portfolio Manager: +2 bearish signal(s).
  • Risk Analyst: stance neutral->bearish; score 45->32 (-12).

Comparing 2026-07-31 to 2026-08-01 (1 day apart).

Technical Analysis

RSI (14)
51.4
Neutral
MACD Histogram
0.736
Bullish Momentum
Trend Direction
Sideways
Weekly: Uptrend
Market Structure
Mixed
Support
$138.68
Resistance
$152.22
Bollinger %B
0.56
Inside Bands
Price vs Moving Averages
EMA 9
$139.57 Above
EMA 21
$139.44 Above
EMA 50
$142.09 Below
EMA 200
$146.86 Below

Fundamental Analysis

Valuation
62
Growth
59
Profitability
1
Financial Health
8
Cash Flow
37
Valuation
P/E Ratio 18.3×
P/B Ratio 8.63×
PEG Ratio 0.47
Dividend Yield 0.04%
52W High $171.48
52W Low $133.73
Quality & Growth
ROE 40.4%
ROA 7.7%
Gross Margin 54.0%
Operating Margin 15.0%
Revenue Growth YoY
Debt / Equity 2.41
AI Fundamental Assessment
P/E ratio of 18.3 (inexpensive relative to a 15-40x range); Price-to-book of 8.6x; PEG ratio of 0.5 (under 1.0 suggests growth is undervalued relative to price); Return on equity of 0.4%; Return on assets of 0.1%; Net margin of 0.1%; Gross margin of 0.5%; Current ratio of 0.93 (tight short-term liquidity); Debt-to-equity of 2.41; Free cash flow margin of 0.7% (thin cash generation); Free cash flow per share is positive (6.80); Most recent quarter missed estimates by 1.3%; EPS growth accelerating (-28.8% -> +36.6% QoQ); Analyst estimates flat over recent quarters
Get the Full PEP Analysis
Interactive charts · Live committee votes · Trade plan · Paper trading · AI Q&A
Open in Terminal →

Explore PEP Further

📈 Rating History 💰 Earnings 📰 Recent Events 🔄 What Changed 📖 Thesis Evolution 🔍 Similar Stocks
Weekly Intelligence Brief
Get the committee's top-scored stocks every Sunday.
Free · No spam · Unsubscribe anytime