Can PEP maintain its earnings momentum into 2025?

**PepsiCo's (PEP) ability to maintain its earnings momentum into 2025 is uncertain**, considering the following points:

1. **Recent Performance and Analyst Expectations**: PepsiCo's stock has experienced fluctuations, with recent months lagging the Consumer Staples sector and the S&P 500. The stock's recent dip of 1.89% over the past month underperformed the sector's gain of 0.56% and the S&P 500's loss of 4.03%. Analysts are cautiously optimistic, with a Zacks Rank of #4 (Sell) and a consensus EPS estimate of $1.52 for the upcoming quarter, indicating a 5.59% decrease from the previous year's same quarter.

2. **Revenue and Profitability Trends**: While PepsiCo's net income grew by 15.86% year-over-year, total revenue saw a slight decline of 0.24%. The company's capital expenditure was negative, with a $2.47 billion decrease in property and equipment, which could indicate challenges in maintaining operational efficiency or investing in growth opportunities.

|code|Ticker|Name|Date|Net Income YoY|Total Revenue YoY|Diluted EPS YoY|market_code|
|---|---|---|---|---|---|---|---|
|PEP|PEP.O|Pepsico|2024 Q1|5.606995884773663|2.263812619074302|5.71428571428572|185|
|PEP|PEP.O|Pepsico|2024 Q2|11.65644171779141|0.8018994713735328|12.060301507537687|185|
|PEP|PEP.O|Pepsico|2024 Q3|-5.487804878048781|-0.5713554769112694|-4.9107142857143|185|
|PEP|PEP.O|Pepsico|2024 Q4|15.861027190332328|-0.236983842010772|18.08510638297874|185|

3. **Market Position and Competition**: PepsiCo's strong market position in the beverage and snack industry is a positive factor. However, the competitive landscape, including emerging trends and consumer preferences, will influence its ability to sustain growth.
4. **Strategic Investments and Analyst Sentiment**: Institutional investments, such as Bay Capital Advisors LLC's $582,000 stake purchase, indicate confidence in PepsiCo's long-term prospects. However, the recent decline in analyst estimates for the upcoming quarter suggests potential challenges.

In conclusion, while PepsiCo's solid market position and recent institutional investments provide some optimism, the company's recent performance, analyst expectations, and revenue trends suggest that maintaining earnings momentum could be challenging in 2025. The company's ability to innovate, manage costs effectively, and capitalize on market opportunities will be crucial in determining its future earnings trajectory.