New York, Jan 13, 2026, 13:31 EST — Regular session
PepsiCo shares gained 0.8%, hitting $142.50 in early afternoon trading Tuesday, outperforming a weaker broader market as consumer staples drove sector advances.
The defensive bid stood out on a day when traders shied from risk, pushing U.S. Treasury bond prices higher and yields down.
Policy pressure on sugary drinks has resurfaced. The World Health Organization warned that low “health taxes” are keeping sugar-sweetened beverages affordable across many nations. It renewed its push for higher levies, backing its “3 by 35” campaign aimed at increasing prices through taxation. (Reuters)
Within the sector, Coca-Cola held steady. Mondelez and Hershey pushed higher, whereas Keurig Dr Pepper slipped a bit.
PepsiCo rose 1.0% Monday to close at $141.36, marking its third consecutive gain. Still, the stock sits roughly 12% below its 52-week peak, per MarketWatch data. Trading volume on Monday surged past the 50-day average, the report noted. (MarketWatch)
Investors are keen to see if PepsiCo can boost volume growth without sacrificing margins. In December, the company unveiled a plan focused on affordability and cost-cutting after talks with activist Elliott Investment Management. PepsiCo forecasted 2026 organic revenue growth between 2% and 4%, excluding currency and deal impacts, and projected core EPS to rise about 5% to 7%. Elliott partner Marc Steinberg said in a statement, “We believe the plan… to invest in affordability… and aggressively reduce costs will drive greater revenue and profit growth.” (PepsiCo)
Tuesday’s action seemed driven more by repositioning than a reaction to any one headline. PepsiCo remains a go-to defensive stock, thanks to its everyday products that usually hold steady when growth concerns spike.
The downside risk remains. Should governments speed up soda taxes, tighten marketing restrictions, or impose new health regulations, PepsiCo could face pressure on both price and volume just as it works to adjust promotions and pricing levels.
Traders will be watching closely to see if the staples bid holds up should rates reverse, or if the market shifts back toward higher-beta plays. In that scenario, slow-and-steady stocks often get left in the dust.
PepsiCo’s earnings report on Feb. 3 stands as the next major trigger. Investors will focus on updates to 2026 targets and early signals on how pricing and promotions are resonating with consumers. (Yahoo)
