11 Best Counter Cyclical Stocks to Buy According to Analysts

7. PepsiCo, Inc. (NASDAQ:PEP)

Average Upside Potential: 11.18%

Number of Hedge Fund Holders: 69

​​PepsiCo, Inc. (NASDAQ:PEP) is a global food & beverage company that runs iconic brands such as Pepsi, Lay’s, and Gatorade. The company’s competitive advantage includes a global reach, with operations in more than 200 countries, and a balance between both beverages and convenience foods, which makes it appealing to a large clientele. PEP is considered one of the best counter cyclical stocks as demand for its affordable, everyday consumer products remains steady even during economic downturns.

As of 2024 year-end, PepsiCo, Inc. (NASDAQ:PEP)’s international business remains a significant growth driver, representing nearly $40 billion in annualized revenue and delivering accretive growth to the company. North America experienced some challenges in the latest fiscal year, particularly in the snacks business, which saw a slowdown in 2024 after five years of rapid growth and gaining almost 200 basis points of market share. The company is encouraged by recent trends showing category growth resumption in the last periods of the year, including both volume growth and positive price mix.

Looking forward, PepsiCo, Inc. (NASDAQ:PEP) is implementing strategic initiatives focused on price pack architecture, innovation, and away-from-home opportunities. The company is investing in portion control platforms, permissible offerings, and new channels, particularly in the away-from-home segment, which represents significant growth potential. Management remains confident in delivering their long-term growth target of 4-6% organic sales growth and translating that into high single-digit EPS growth, noting they have exceeded these targets over the past five years.