Jul. 23, 2025 5:10 PM ETPepsiCo, Inc. (PEP) Stock, PEP:CA StockPEP, PEP:CABay Area Ideas2.35K FollowersI am downgrading PepsiCo to a hold as tariff headwinds pressure North America sales and increase costs, impacting margins and profitability.Q2 revenue growth showed improvement, but EPS and cash flow declined, highlighting underlying business challenges despite a solid dividend track record.Guidance for 2025 suggests only modest revenue growth and flat EPS, with profitability concerns outweighing the appeal of increased capital returns.Valuation now appears fair, not undervalued, as tariff impacts and uncertain outlook justify a more cautious stance on the stock.Merydolla/iStock Editorial via Getty ImagesBack in mid-March, I boldly called the bottom in PepsiCo, Inc. (NASDAQ:PEP) as I saw bullish reversal potential and undervaluation. Well, the stock continued to decline into May, but at least after a recent rebound, lossesThis article was written byBay Area Ideas2.35K Followers*Please consider following my new X/Twitter account for reaction to market developments and news.* I'm a full-time investor with a strong focus on the tech sector. I graduated with a Bachelor of Commerce Degree with Distinction, major in Finance. I'm also a proud lifetime member of the Beta Gamma Sigma International Business Honor Society. My core values are: Excellence, Integrity, Transparency, & Respect. I always, to the best of my ability, hold true to these values which I believe are key for long-term success. I would like to invite all of my readers to leave their constructive criticism and feedback in the comments section so that I can further enhance the quality of my work moving forward. Thank you and God Bless America!Analyst’s Disclosure:I/we have no stock, option or similar derivative position in any of the companies mentioned, and no plans to initiate any such positions within the next 72 hours. I wrote this article myself, and it expresses my own opinions. I am not receiving compensation for it (other than from Seeking Alpha). I have no business relationship with any company whose stock is mentioned in this article.Seeking Alpha's Disclosure: Past performance is no guarantee of future results. No recommendation or advice is being given as to whether any investment is suitable for a particular investor. Any views or opinions expressed above may not reflect those of Seeking Alpha as a whole. Seeking Alpha is not a licensed securities dealer, broker or US investment adviser or investment bank. Our analysts are third party authors that include both professional investors and individual investors who may not be licensed or certified by any institute or regulatory body.Comments