PepsiCo Stock News

The stock market has sold off sharply this year, with the S&P 500 (^GSPC 1.81%) recently down about 10% since 2025 began. While stock market sell-offs can be tough to stomach, there is a silver lining to downturns.

Over the last three years, diversification has fallen out of fashion. When investors can make 20% or higher returns in technology stocks and even more from the Magnificent 7, the idea of investing in low-growth dividend stocks loses some appeal.

Coca-Cola (KO 2.24%) is a very well-run company, highlighted by its status as a Dividend King. But it is also expensive, with its price-to-sales (P/S) and price-to-earnings (P/E) ratios both above their five-year averages and its dividend yield near decade lows.

Stock market sell-offs can be challenging for investors. Market volatility can make it tough to make new investments and keep the ones you already have due to the fear that they could lose value.

Most people don't like seeing stock prices go down. It triggers a very natural emotional response associated with pain and loss.

Like an open can of soda left out overnight, PepsiCo (PEP -3.18%) stock has lost its fizz lately -- it's down by about 15% over the past year at the time of this writing. Though it has delivered consistent earnings growth, the combination of muted guidance for the year ahead and rising uncertainties about the outlook for the U.S. economy are weighing on the beverages and packaged foods giant.

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During increasing volatility, stocks like Coca-Cola (KO 2.62%) and PepsiCo (PEP 1.56%) perform relatively well.