PepsiCo (PEP) shares are down about 14% over the past six months. Although third-quarter results were not bad, management cut full-year adjusted EPS guidance as North American sales recover more slowly than expected. The company had cut prices on core brands like Lay's and Doritos by up to 15% to attract value-sensitive consumers, but plans modest price increases in 2027, while inflation, tariffs and higher transportation costs add pressure. The article notes strong international performance and a lower guidance bar for next quarter, and says the stock's valuation, around 15 times forward earnings and a price-to-sales ratio slightly under 2, suggests it is fairly priced. As a Dividend King with at least 50 consecutive years of dividend increases and a yield above 4%, it is described as a defensive consumer goods stock for income-focused or patient investors.
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