14 Best FMCG Stocks To Buy Now

5. PepsiCo, Inc. (NASDAQ:PEP)

Number of Hedge Fund Holders: 62

PepsiCo, Inc. (NASDAQ:PEP), headquartered in Purchase, New York, is a leading American multinational corporation in the food, snack, and beverage industry. Notably, PepsiCo’s shares have exhibited significant growth, rising approximately 23.05% over the past five years. Known for its robust financial foundation, PepsiCo has impressively increased its dividends for 51 consecutive years. It currently pays a quarterly dividend of $1.36 per share, resulting in a yield of 3.32%.

On May 16, Jefferies updated its outlook on PepsiCo (NASDAQ:PEP) shares, raising the price target from $209 to $211 while maintaining a Buy rating. The firm noted that after acquiring its US bottlers, PepsiCo’s North America Beverages (PBNA) segment margins initially stood at 18% but have since declined to 11%. Jefferies’ report highlights several factors that could lead to improved PBNA margins, including a revamped product portfolio, a larger asset base, and reduced capital expenditure. Additionally, stable input costs are expected to support margin improvement.

By the end of Q1 2024, 62 hedge funds included PepsiCo, Inc. (NASDAQ:PEP) in their portfolios, according to Insider Monkey’s database. Fisher Asset Management emerged as the largest stakeholder, with holdings of 6.95 million shares valued at $1.21 billion.