5 Best FMCG Stocks to Buy Now

3. PepsiCo, Inc. (NASDAQ:PEP)

Number of Hedge Fund Holders: 62

PepsiCo, Inc. (NASDAQ:PEP) is a multinational food, snacks, and beverage company that operates in more than 200 countries. The company has 23 brands with over $1 billion in sales. 

PepsiCo, Inc. (NASDAQ:PEP) has recorded a revenue CAGR of 8.78% in the last two years. In addition, the company reported revenues of $80.85 billion in the last twelve months, in addition to gross margins of 53.4%. This exhibits a sales increase of 20.3% compared to the pre-pandemic levels. In the last twelve months, PepsiCo, Inc. (NASDAQ:PEP) reported an income of $10.17 billion, constituting an increase of 39.1% from pre-pandemic levels. Lastly, the company reported a free cash flow of $7.39 billion in the last twelve months, an increase of 38.1% compared to FY 2019 levels.

On July 7, Morgan Stanley analyst Dara Mohsenian stated that he is optimistic about PepsiCo, Inc. (NASDAQ:PEP) and believes that the company will post “solid” Q2 sales. The analyst considers the company’s revenue growth to be “sustainably above what’s priced in by the market”. Mohsenian maintained an Overweight rating on the company’s shares with a price target of $198.

ClearBridge Investments mentioned PepsiCo, Inc. (NASDAQ:PEP) in its Q4, 2021 investor letter. Here is what the firm said:

“The pandemic created opportunities for us to be more aggressive in a variety of areas of the market. We were opportunistic throughout the year. After a strong year for equities, we sought to bolster more defensive areas of the portfolio and added to PepsiCo, increasing our exposure to a high-quality and stable name.”