15 Best Large-Cap Value Stocks to Buy as the Recession Hits

7. PepsiCo, Inc. (NASDAQ:PEP)

Number of Hedge Fund Holders: 69

Forward P/E as of April 15: ~17.2x

PepsiCo, Inc. (NASDAQ:PEP) is engaged in the manufacturing, marketing, distribution, and selling of various beverages and convenient foods. UBS analyst Peter Grom remains optimistic about the company’s stock after PepsiCo, Inc. (NASDAQ:PEP) announced the definitive agreement to acquire poppi, a fast-growing prebiotic soda brand. The company has been evolving its food and beverage portfolio over several years. Consumers continue to seek convenient and great-tasting options that align with their lifestyles and cater to the growing interest in health and wellness. Notably, poppi’s consumer-first approach, cultural cache, and nutritional profile have resulted in a loyal fan base and driven strong growth.

PepsiCo, Inc. (NASDAQ:PEP)’s robust performance in international markets offers a strong opportunity to mitigate the challenges witnessed in the domestic operations. Its international business has demonstrated growth inflection and margins above the corporate average, exhibiting healthy potential for expansion and increased profitability. Also, PepsiCo, Inc. (NASDAQ:PEP)’s emphasis on productivity initiatives and cost savings offers numerous opportunities for improving profitability and operational efficiency. Through implementing more efficient processes and leveraging economies of scale, PepsiCo, Inc. (NASDAQ:PEP) can reduce the cost base, resulting in more competitive pricing. The improved operational efficiency can enhance the company’s agility in responding to market changes and consumer trends.