Should I buy PepsiCo stock in 2025? A Guide for South African Investors

What is PepsiCo?

How much is the PepsiCo stock?

The price of PepsiCo stock is rising this week. As of now, PepsiCo is trading at $131.92, showing a 0.96% gain over the last 24 hours, but reflecting a 1.38% decrease over the past week.

The company’s market capitalisation stands at $180.87 billion, with an average 3-month daily volume of 8.2 million shares. PepsiCo posts a P/E ratio of 19.43, a dividend yield of 4.31%, and a notably low beta of 0.48.

This low beta suggests PepsiCo stock tends to be less volatile than the overall market, offering a more defensive choice for South African investors seeking stability.

Our complete analysis of the PepsiCo stock

After extensively reviewing PepsiCo’s (NASDAQ: PEP) latest financials and examining the stock’s trajectory over the last three years, we have applied a rigorous combination of quantitative indicators, technical signals, consensus market data, and peer benchmarking—leveraged within our proprietary analytical algorithms. The results reveal a compelling set of structural strengths and near-term catalysts. So, why might PepsiCo stock once again become a strategic entry point into the defensive consumer sector for 2025 and beyond?

Recent Performance and Market Context

PepsiCo, currently trading at $131.92 (as of 30 May 2025), has undergone a significant share price correction over the past year, with a 12-month decline of -22.9% and a 6-month retreat of just over -19%. This movement has brought PepsiCo near its 52-week low ($127.75–$180.91), a level not seen in several years, but represents a phase where market overreaction often shifts into opportunity.

Short-term pressure on the stock has been primarily linked to macroeconomic headwinds—namely, recent concerns over tariffs and North American market uncertainty. Yet, even amid these obstacles, Q4 2024 earnings delivered an upside surprise versus analyst forecasts, reinforcing robust underlying demand for PepsiCo’s diversified product range.

Notably, in May 2025, the FTC’s decision to drop the pricing discrimination case against PepsiCo removed a key regulatory risk and triggered a sharp rebound in investor sentiment. As global defensive names become increasingly attractive against a backdrop of market volatility, PepsiCo stands out for its resilience and global reach—factors of particular relevance for South African investors seeking partial hedges and dollar-denominated income streams.

Technical Analysis: Bullish Setup at Multi-Year Support

• Relative Strength Index (RSI, 14 days): 35.8, comfortably in oversold territory, historically signalling an inflection point and rising probability of a technical rebound.
• MACD: -2.76, negative but with a flattening slope, indicating the deceleration of selling momentum.
• Key Support Level: $130.68, which has so far contained recent weakness and acted as a floor for repeated rebound attempts.
• Current Price: Slightly above support at $131.92, and within proximity of initial resistance at $131.61—a situation primed for a breakout should momentum build.

The daily and weekly charts are starting to form a positive divergence on the RSI, a signal often preceding robust recoveries. Importantly, PEP trades well below its primary moving averages (short-, medium-, and long-term), reflecting not only the depth of the correction but the increased risk/reward skew for new entrants.

Short- to medium-term structure presents an attractive risk/reward profile for investors who target inflection points, especially as the broader consumer staples sector enters a seasonally favorable period.

Fundamental Analysis: Quality and Consistency, Well-Priced

Such absolute and relative valuation metrics are increasingly attractive against long-term historic norms and peer averages—particularly when factoring in PepsiCo’s 40% revenue share from high-growth emerging markets and its unrivalled global snack (55% of sales) and beverage portfolio (45%). The modest annual revenue growth (2–3% projected) is supplemented by substantial free cash flow and management’s high commitment to shareholder returns, making its present valuation a likely floor for long-term capital allocators.

Its multi-category portfolio (Pepsi, Lay’s, Doritos, Gatorade, Mountain Dew) and the strategic pivot towards health-conscious and sustainable products fortify the competitive moat, positioning PepsiCo to capture both mature and growth category upside.

Moreover, in comparison to big beverage peers, PepsiCo’s stability of dividend, strong cash generation, and modest beta (0.48) particularly suit institutional and pension allocation criteria—as well as retail investors seeking visible compounding.

Volume and Liquidity: Signs of Institutional Confidence

Trading dynamics further underpin the case for renewed interest here. An average daily volume of 8.2 million shares and 1.37 billion shares outstanding confirm deep liquidity and efficient price discovery, reducing transaction risk even for sizable positions. Floating capital remains high, supported by broad institutional ownership.

Recent sustained volumes, even amid a depressed price, signal continued accumulation by long-view investors, hinting at a vote of confidence from seasoned market actors who frequently pre-empt price recoveries in blue chip names.

Catalysts and Positive Outlook

• Innovation: Ongoing product launches in the health and wellness segments, leveraging rising demand in functional and energy drinks.
• International Expansion: Strong operational footprint in emerging markets, particularly APAC, now accounting for 40% of group sales.
• Portfolio Diversification: The balance between snacks and beverages creates defensive resilience—even if one category faces cyclical or regulatory headwinds.
• Favourable Sector Policy: The recent FTC decision eliminates a significant legal concern, clearing the path for strategic focus on execution and innovation.
• ESG Commitment: PepsiCo’s sustainability initiatives continue to align with shifting consumer preferences and investor mandates, underpinning long-term appeal.
• Dividend Policy: Yield of 4.31%, at the top end of the sector and well-covered by cash flows, offers compelling income even in a flat or modestly growing scenario.

With global consumer preferences shifting and regulatory overhangs receding, there is increased scope for re-rating—especially as Q1 and Q2 2025 updates could act as further catalysts.

Investment Strategies: Multiple Horizons, Strong Positional Logic

• Short-term:
• Strategic entry around current levels ($130–$132) to capitalise on the technical oversold condition and imminent support.
• Target: bounce towards the 50-day moving average as sentiment improves, especially ahead of the Q1 2025 earnings window.
• Medium-term:
• Positioning for a return to the analyst consensus target of $150.06 (+13.7% upside) or toward $171.50 (+30%) on a 6–12 month view—potentially amplified by continuing product innovation, emerging market recovery, and ongoing cost discipline.
• Long-term:
• For buy-and-hold investors, accumulating at multi-year support aligns with a historic pattern where PepsiCo’s dips have repeatedly preceded meaningful total return outperformance, supported by compounding dividends and global category leadership.
• As an offset to local ZA market volatility and rand depreciation, PEP provides both currency diversification and stability.

Importantly, the technical low and removal of major regulatory uncertainties make the current setup ideal for methodical staging-in or systematic accumulation strategies.

Is it the Right Time to Buy PepsiCo?

In summary, PepsiCo arguably stands at a key inflection point: valuation metrics are undemanding, technical indicators point to a likely reversal, and the fundamental story is anchored by irreplaceable brands, a resilient and diversified international footprint, superior dividend visibility, and demonstrated management execution. The recent regulatory clarity and the attractive entry-level driven by the share’s correction appear to justify renewed interest both for tactical traders and strategic investors.

As the market digests recent uncertainties and looks ahead to likely catalysts over the next 6–12 months, PepsiCo’s upside potential seems to clearly outweigh residual risks. For South African investors seeking secure, USD-denominated exposure to global defensive growth with embedded income, PepsiCo’s combination of robust fundamentals and undervalued technicals makes it a compelling consideration for inclusion in globally diversified equity portfolios.

Ultimately, for those with an eye for value and an appreciation of consistent, global brands, PepsiCo’s present setup seems to represent an excellent opportunity for renewed engagement—offering both near-term revaluation potential and long-term compounding for patient capital.

How to buy PepsiCo stock in ZA?

Buying PepsiCo shares online is both simple and secure for investors in South Africa, especially when using a regulated broker. Today’s digital brokerages allow you to access the global stock market easily, offering two main ways to invest: you can buy PepsiCo shares outright ("spot" or cash purchase), or trade them via Contracts for Difference (CFDs) to speculate on the price. Each path has its own features and risks. For a clear breakdown of which local and international brokers are best for each method, see the broker comparison table further down the page.

Spot buying

When you buy PepsiCo shares for cash, you become the legal owner of real shares on the US market (NASDAQ: PEP). This method is popular for investors looking for long-term growth or to receive dividends. Fees usually include a fixed commission per transaction, typically around R80–R150 per order (about $5–$8), alongside possible currency conversion costs if you fund your account in Rand.

Example

If the PepsiCo share price is $131.92 USD, a $1,000 stake (roughly R18,500 at R18.50/USD) allows you to buy about 7 shares, accounting for a $5 brokerage fee.
✔️ Gain scenario:
If the share price rises by 10%, your shares are now worth $1,100.
Result: +$100 gross gain, a 10% return on your investment.

Trading via CFD

CFDs (Contracts for Difference) enable you to trade PepsiCo shares without owning them, by speculating on price movements with leverage. This means you can open larger positions with a smaller deposit, but it increases both potential gains and risks. Typical costs here include the spread (the small difference between the buying and selling price) and an overnight financing fee if you hold positions overnight.

Example

With a $1,000 (R18,500) deposit and 5x leverage, you access a $5,000 position on PepsiCo.
✔️ Gain scenario:
If PepsiCo shares rise by 8%, your CFD position gains 8% × 5 = 40%.
Result: +$400 gain on a $1,000 deposit (excluding spreads/overnight fees).

Final advice

Before investing, it’s vital to compare the fees, platforms, and regulatory protections of different brokers—it can make a significant difference to your outcomes. Whether you choose cash share dealing or CFD trading on PepsiCo depends on your investment goals, risk tolerance and whether you seek dividends or short-term trading opportunities. A detailed broker comparator is provided further down to help you find the option that best suits your needs.

Our 7 tips for buying PepsiCo stock

The latest news about PepsiCo

PepsiCo's Q4 2024 earnings exceeded analyst expectations, supporting positive sentiment among investors globally and in South Africa. The company's revenue for the quarter reached $27.78 billion, with net income at $1.52 billion and earnings per share at $1.11, outperforming consensus forecasts despite certain headwinds in North America. This reflects the resilience of PepsiCo’s business model and diversified international footprint, which is particularly relevant for South African stakeholders given the company's significant activity in emerging markets and strong performance in the snack category, a segment with notable presence in South Africa through brands like Lay’s and Doritos. The solid financials further underpin the reliability of PepsiCo’s dividend and support confidence in ongoing local operations and distribution.

The U.S. Federal Trade Commission dropped its price discrimination lawsuit against PepsiCo in May 2025, removing short-term regulatory risks. This decision marks a significant shift in the competitive landscape and regulatory oversight for PepsiCo and, by extension, for its global subsidiaries and supply chains. For the South African market, where import agreements and distributor partnerships rely on regulatory stability from parent companies, this marks a constructive development, ensuring continuity and predictability in product sourcing and strategic planning. The regulatory clarity should help sustain local supply and promote investor confidence in the region.

PepsiCo’s dividend yield stands at an attractive 4.31%, with quarterly distributions supported by a stable payout policy and a confirmed ex-dividend date of 6 June 2025. This feature is significant for ZA-based portfolio managers and income-focused investors, highlighting the stock’s defensive appeal and its capacity to generate consistent returns even amid short-term share price volatility. South African regulators generally enable access to large-cap U.S. stocks via local platforms, and the upcoming dividend cycle provides an immediate income opportunity aligned with regional demand for yield-generating assets.

Emerging market growth continues to be a core contributor to PepsiCo’s revenues, with 40% of sales generated outside the U.S.—a key factor for the South African market. PepsiCo’s strategy of expanding its health and wellness lines as well as its established leadership in both snacks and beverages underpins ongoing investment in local manufacturing, distribution partnerships with South African firms, and adaptation to evolving consumer preferences. These initiatives are important as they anchor the group’s relevance and brand strength in southern Africa, further enabling the company to capture market share from rivals and respond nimbly to trends such as healthy snacking and functional beverages.

Technical indicators suggest PepsiCo’s shares are in oversold territory, presenting potential opportunity for value-oriented investors in South Africa. The 14-day RSI is at 35.82, and MACD remains negative, highlighting short-term bearish momentum but also signaling a likely technical rebound. With the price trading near key support levels and the medium-term analyst consensus target at $150.06 (approximately 13.7% above current levels), South African institutional investors and asset managers may view this dislocation as an entry point for accumulation, especially given the company’s global reach, local presence, and history of weathering macroeconomic downturns.

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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.