We recently published a list of Jim Cramer’s Latest Calls: 10 Stocks to Buy or Sell. In this article, we are going to take a look at where PepsiCo, Inc. (NASDAQ:PEP) stands against other stocks to buy and sell highlighted in Jim Cramer’s latest calls.
Jim Cramer in a latest program on CNBC reminded viewers about the Trump playbook in the story market and said that he never believed the President would start a new trade war with China. Cramer explained that Trump’s rhetoric has been “hot” but the reality is “cool” and his much-feared tariffs against Canada and Mexico might also not realize as the new administration said it will “study” the matter.
“The president loves the stock market; he always loves to send signals that all hell is going to break loose, and when it doesn’t, well, guess what? The market flies. This rally is built on the back of tariffs, more specifically small-than-expected tariffs that could grow bigger if countries don’t play ball. It’s built on the backs of new projects like Stargate, a new AI infrastructure initiative.”
Cramer then explained in detail why he believes Biden and his government were against top companies and how it affected the market and economy. Cramer said Trump is better for stock portfolios.
“He knows business people in Silicon Valley; he knows how things work. You may like him, you may hate him, but the bottom line is, if you’re a tech titan, Trump will take your call. In fact, he’ll call you. Biden, I don’t know if he knew who they even were, and he certainly didn’t bother to call them. In the end, I think he preferred to sue them. If you own stocks, which is why you watch me, Trump’s method is a heck of a lot better for your portfolio.”
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 Jim Cramer recently talked about during his programs on CNBC. With each stock, 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 275% since May 2014, beating its benchmark by 150 percentage points (see more details here).
PepsiCo, Inc. (NASDAQ:PEP)
Number of Hedge Fund Investors: 58
A caller recently asked Jim Cramer about PepsiCo, Inc. (NASDAQ:PEP). Cramer said the stock is under threat from weight-loss drugs.
“It’s right in the wheelhouse. I mean, it, it, it’s talking about salty potato chips. I don’t know what to say. Yields 3.7%. Maybe when it gets to 4%, but right now it’s in the crosshairs of the GLP-1 situation.”
Artisan Global Equity Fund stated the following regarding PepsiCo, Inc. (NASDAQ:PEP) in its Q1 2024 investor letter:
“In the demographics/consumer trends theme, slowing sales volumes led us to focus more on services versus goods. As an example, we sold our position in food and beverage leader PepsiCo, Inc. (NASDAQ:PEP) given slowing growth in its underperforming core beverage business, one which generates about 60% of revenues. Adding to the uncertainty of growth prospects beverages, PepsiCo was forced by local lawmakers and industry wholesalers to shift to a new distribution model during the rollout of Hard Mtn Dew, a new line of drinks that combines Mountain Dew with malt liquor. We also exited our position in Wal-Mart de Mexico as the company regroups after Hurricane Otis devastated parts of Mexico’s west coast last fall. The damages will likely affect earnings over the medium term. We also sold consumer food and beverage giant Nestle due to slowing sales volume growth. Food inflation over the last two years has increased consumer price sensitivity, putting pressure on many in the industry. In contrast to these goods providers, we bought shares of TUI, an online travel agency that provides custom travel experiences via dynamically priced services such as airfare, lodging and local activities on one platform. We believe the addition of Ryanair to the platform, Europe’s largest airline, will strengthen TUI’s service offering at a time when travel spending is predicted to remain elevated at least through the summer.”
Overall, PEP ranks 5th on our list of stocks to buy and sell highlighted in Jim Cramer’s latest calls. While we acknowledge the potential of PEP, 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 time frame. 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 Complete List of 59 AI Companies Under $2 Billion in Market Cap
Disclosure: None. This article is originally published at Insider Monkey.
