PepsiCo shares fall 29% from high, near 52-week low, while Coca-Cola hits all-time highs; analysts see PepsiCo as potential buying opportunity
PepsiCo's stock performance contrasts sharply with Coca-Cola's, with PepsiCo shares down 29% from their high and trading near a 52-week low, while Coca-Cola is up 28% year-to-date and near new all-time highs. Despite the struggle, PepsiCo is still growing volumes, revenue, and earnings, leading analysts to view the sell-off as a potential opportunity, particularly for dividend investors. Coca-Cola's stronger sales and operating margins (35% vs. PepsiCo's 16.5% in Q2) have been rewarded by investors. However, PepsiCo trades at a more modest 16 times forward earnings estimates compared to Coca-Cola's 27, and recently raised its quarterly dividend by 4% to $1.48 per share, offering a 4.2% forward yield.
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