Ahead of PepsiCo Earnings, Here's What Barchart Data Says Comes Next for PEP Stock

PepsiCo (PEP) shares have been a major disappointment for investors in 2026, but the derivatives market believes some near-term recovery is likely after the company’s fiscal Q3 earnings on Oct. 8. Consensus is for the beverage giant’s per-share earnings (EPS) to remain essentially flat on a year-over-year basis in the third quarter at $2.29.

Heading into the quarterly print, PepsiCo stock is down more than 25% versus its year-to-date high in early February. 

Options Sentiment Is Bullish for PepsiCo Stock

Options traders are fully convinced that a 4.2% top-line growth PepsiCo is expected to record early on Thursday will prove sufficient to trigger a near-term rally. 

According to data from Barchart, the put-to-call ratio on contracts expiring Oct. 9 sits at 0.63x as of writing, indicating a strong bullish skew. And the upper price on those options contracts is set at $128 currently, indicating PEP shares could rally nearly 3% from here through the end of this week. 

That said, Barchart itself does not agree with the options market sentiment. Its “100% SELL” average opinion suggests the technical setup is not at all in PepsiCo’s favor heading into the earnings event. 

PEP Shares Are Now Attractively Priced

PEP has been under pressure in 2026 as prolonged drag on household expenditures made consumers trade down to private-label brands or cut back on discretionary snacks. 

Plus, the rising popularity of GLP-1 weight-loss treatments continues to reshape food preferences, especially of the younger U.S. population, further hurting demand for packaged foods and sugary beverages. 

However, PepsiCo shares are currently trading at a forward price-to-earnings (P/E) multiple of nearly 15x, which makes them notably cheaper to own than rival Coca-Cola (KO) at roughly 26x. 

A rather lucrative 4.77% dividend yield makes PEP even more attractive as a long-term holding in late 2026. 

How Wall Street Recommends Playing PepsiCo

Wall Street analysts also believe the selloff in PepsiCo has gone a bit too far. 

While the consensus rating on PEP stock sits at “Hold,” the mean price objective of about $147 suggests significant room to the upside from current levels. 

On the date of publication, Wajeeh Khan did not have (either directly or indirectly) positions in any of the securities mentioned in this article. All information and data in this article is solely for informational purposes. For more information please view the Barchart Disclosure Policy here.