Prediction: Pepsi Stock Could Surprise Wall Street in 2027

PEP trades at 16x 2027 earnings, a steep discount to its historical 23x average, making a re-rating toward $175 the core bull thesis.

Pepsi has beaten earnings estimates 4 straight quarters even as analysts trimmed 2027 EPS from $9.15 to $8.98 on cautious management guidance.

A $5.92 annual dividend, the 54th consecutive hike, plus a $10 billion buyback underpin total return while investors await the re-rating.

Just released. Our analysts combed the entire stock market and named the ten best stocks to buy right now. The report is free. Enter your email and see if any of your stocks made the cut.

I've watched PepsiCo ( NASDAQ:PEP ) trade like a stock the market has forgotten. Shares are down 0.71% year-to-date and off 2.25% over the past year, even as CEO Ramon Laguarta pushes through the biggest portfolio refresh in years.

Q2 delivered the fastest volume growth since 2022, U.S. salty snacks flipped from share loser to share gainer, and international revenue is on pace to cross $40 billion this year. With shares near $141, let me walk through what it would take for Pepsi to reach $175 in 2027.

Why Wall Street Sees a Slow Grind Higher

The Street's consensus 12-month price target sits at $155, roughly 10% above the current quote. Analysts model $8.98 in 2027 EPS on $101.9 billion in revenue, up from $8.56 EPS on $98.9 billion in 2026. Coverage is deep, with 23 EPS analysts tracking the name.

Estimates have drifted lower (the 2027 EPS average was $9.15 ninety days ago), which reflects management's warning that results could land "towards the low end of the EPS range." Still, Pepsi has beaten expectations in 4 consecutive quarters, so the modeled numbers may prove conservative.

Did Any of Your Stocks Make the Top 10 List?

It is an uncomfortable question, and there is now an answer to it.

24/7 Wall St has helped investors make money for over two decades, and our top analysts just finished ranking the definitive Top 10 Stocks To Buy Now. Not the ten biggest companies. Not the ten everyone is arguing about. The ten best stocks to buy right now.

Open your account and look at what you own. Some of it you bought for a reason you could still defend today. Some of it you bought years ago for a reason you can no longer remember.

The report is free. Put the ten next to what you own and find out which is which.

Free from 24/7 Wall St. It lands in your inbox.

At $141, PEP trades at roughly 16x 2027 EPS of $8.98. A move to $175 would push the multiple to about 19x, still below the S&P 500's forward P/E near 22x and well beneath Pepsi's own historical 23x trailing multiple.