Analyst Recommends PepsiCo, Inc. (PEP) Amid Dividend and Earnings Growth, Calls It ‘Stalwart’ Company

We recently published a list of Top 10 Stocks Analysts are Watching as AI Selloff Deepens. In this article, we are going to take a look at where PepsiCo, Inc. (NASDAQ:PEP) stands against other top stocks analysts are watching as AI selloff deepens.

Major AI stocks are struggling to gain traction as investors rethink their strategies amid concerns of a slowdown in spending. Even top tech bulls are starting to use the word “bubble” for the AI trade. Gene Munster, Deepwater Asset Management managing partner, said in a latest program on CNBC that he believes we still have two years of the AI bull run before the bubble bursts.

“From a high-level perspective, I always return to the fundamentals as a tech investor. The fundamentals of these companies remain strong. I predict we have two good bullish years ahead before a spectacular bubble burst. When I see this, it shakes my confidence, but if I stay focused on the fundamentals, I still believe this trade will play out.”

READ ALSO 7 Best Stocks to Buy For Long-Term and 8 Cheap Jim Cramer Stocks to Invest In

For this article, we picked 10 stocks analysts are currently talking about. With each company we have mentioned the number of hedge fund investors. Why are we interested in the stocks that hedge funds pile into? The reason is simple: our research has shown that we can outperform the market by imitating the top stock picks of the best hedge funds. Our quarterly newsletter’s strategy selects 14 small-cap and large-cap stocks every quarter and has returned 373.4% since May 2014, beating its benchmark by 218 percentage points (see more details here).

A close up of a glass of a refreshing carbonated beverage illustrating the company’s different beverages.

PepsiCo, Inc. (NASDAQ:PEP)

Number of Hedge Funds Investors: 60

Michael K. Farr, CEO and founder of Farr, Miller & Washington LLC, said in a latest program on CNBC that he likes PepsiCo, Inc. (NASDAQ:PEP) because of its dividend and earnings growth:

“Pepsicola, 3.4% dividend, 7% earnings growth. You know, if I got a 3% dividend and 7% earnings growth and a 10% return out of these kind of stalwart companies, I’d be okay.”

Overall, PEP ranks 9th on our list of top stocks analysts are watching as AI selloff deepens. While we acknowledge the potential of PEP as an investment, our conviction lies in the belief that under the radar AI stocks hold greater promise for delivering higher returns, and doing so within a shorter timeframe. If you are looking for an AI stock that is more promising than PEP but that trades at less than 5 times its earnings, check out our report about the cheapest AI stock.

READ NEXT: 20 Best AI Stocks To Buy Now and 30 Best Stocks to Buy Now According to Billionaires

Disclosure: None. This article is originally published at Insider Monkey.