Prediction: This Out-of-Favor Dividend Stock Could Have Significant Upside

PepsiCo (PEP) is trading near its 52-week low with a 4.31% dividend yield, and analysts have set a $152.80 price target, indicating significant upside potential. PEP's forward P/E ratio is 16, which is lower than both Coca-Cola (KO) at 25x and Mondelez (MDLZ) at 18x, and offers the highest yield among the three. Even in a bearish scenario, PEP's price is projected at $142, which is above its current trading price.

Our analysts have analyzed the entire stock market and found PepsiCo to be the tenth best stock to buy right now, despite it not making the cut in the report. The company has experienced four consecutive quarters of beating EPS estimates and has shown strong growth in international markets, including LatAm Foods (+15%), Asia Pacific Foods (+12%), EMEA (+10%), and IB Franchise (+11%).

However, North American results have been pressured by inflation, impacting convenience and gas channel conversion. Despite facing challenges, PepsiCo's dividend growth and buyback programs provide income and potential upside for shareholders.