7 Best Sugar Stocks to Buy According to Analysts

3. PepsiCo, Inc. (NASDAQ:PEP)

Upside Potential: 8.68%

Number of Hedge Fund Holders: 69

In the global food and beverage market, PepsiCo, Inc. (NASDAQ:PEP) has solidified its position as a leading competitor, especially in the sugar-sweetened sector. Listed among the 7 best sugar stocks to buy, the company is dedicated to diversifying its portfolio and making strategic reinvestments.

Due to an extensive selection of snacks and beverages, the company’s growth trajectory remains strong, as indicated by the considerable sales gain of 2.1% in Q4 ended December 28, 2024. However, with an EPS of $0.13 compared to the projected $0.19, earnings fell short of expert estimates. PepsiCo, Inc. (NASDAQ:PEP) has increased its annual dividend by 7% to $1.355 per share, to increase shareholder returns, demonstrating its confidence in its financial stability.

PepsiCo, Inc. (NASDAQ:PEP)’s strategy is centered on innovation and diversification. The company paid $1.2 billion in January 2025 to acquire Siete Foods, a developing company known for its plant-based and grain-free snacks. PepsiCo’s position in the health-conscious market is strengthened by this acquisition. Despite these initiatives, the company’s primary business is still centered around sugar-sweetened goods under well-known brands like Pepsi, Tropicana, Gatorade, and Mountain Dew. The company’s strategy is to provide a well-rounded assortment that accommodates both indulgence and the changing tastes of today’s customers.

Moreover, PepsiCo, Inc. (NASDAQ:PEP) is adjusting by improving its pricing and distribution tactics in response to changing marketplace dynamics. The optimization of its price pack design is one key initiative that provides customers with greater choice and control over portion sizes for its sugary drinks and snacks. With this strategy, the company may reach customers at several price points, maintaining accessibility and continuous brand engagement.