11 Stocks on Jim Cramer’s Radar Right Now

7. PepsiCo, Inc. (NASDAQ:PEP)

Number of Hedge Fund Holders: 65

PepsiCo, Inc. (NASDAQ:PEP) is a prominent global company engaged in the production and sale of beverages and convenient foods. The product range offered by the company is vast, including snacks such as chips and dips, cereals, and various side dishes. The beverage selection includes ready-to-drink teas, coffees, juices, and even alcoholic beverages marketed under the Hard MTN Dew brand. Popular brands like Lay’s, Doritos, Gatorade, and Pepsi-Cola highlight the company’s ability to appeal to a wide range of tastes and preferences.

Mentioning the company’s upcoming earnings release, Cramer said:

“Tuesday marks the beginning of earning season when PepsiCo reports before the open. Now, this reliable food and beverage stock has been hit with multiple price target cuts, okay. But maybe that’s put a lid on expectations to the point where the stock can stabilize on somewhat in-line results. By the way, it doesn’t hurt that PepsiCo sports a 3.2% yield, which is pretty darn good, especially as long as treasury yields stop going higher. It sure is tempting.”

Although PepsiCo (NASDAQ:PEP) may currently face challenges in the market, its strengths in supply chain management, marketing, and distribution provide a significant advantage in both growing existing brands and pursuing innovative opportunities or acquisitions. Additionally, it has established itself as a Dividend King, having consistently paid and increased its dividends for over 50 years.

On October 1, PepsiCo (NASDAQ:PEP) announced a definitive agreement to acquire Garza Food Ventures LLC, known as Siete Foods, for $1.2 billion. Through the acquisition, it seeks to advance the company’s portfolio by integrating an authentic Mexican-American brand and expanding its offerings of better-for-you food products. The transaction is expected to be finalized in the first half of 2025.