Jim Cramer’s Game Plan: 15 Stocks in Focus

6. PepsiCo, Inc. (NASDAQ:PEP)

Number of Hedge Fund Holders: 58

Cramer mentioned that packaged food stocks like PepsiCo, Inc. (NASDAQ:PEP) have been hit because of GLP-1s but mentioned its attractive yield as well.

“The packaged food stocks have been dogs, dogs ever since the GLP-1 drugs burst on the scene, especially PepsiCo, one of my faves with its soft drink and snacks businesses. I think the new weight loss drugs make it hard for this great company to play offense. Hasn’t helped that this supermarket has become an inflation battleground, but PepsiCo yields 3.6%. You never know when you can catch a total rotation into this beaten-down group.”

PepsiCo (NASDAQ:PEP) is a leading company in the production, marketing, and distribution of a wide range of beverages and snack products, featuring popular brands like Lay’s, Gatorade, Pepsi, Doritos, Tropicana, and Aquafina. When Cramer discussed the company in November 2024, he recommended avoiding the stock, citing several factors that could negatively impact its performance.

He pointed out potential rate cuts by the Federal Reserve, the impact of GLP-1 drugs on consumer behavior, and rising concerns about junk food consumption. Despite PepsiCo (NASDAQ:PEP) offering a 3.5% yield at the time, Cramer believed these elements could cause the stock to decline as he stated, “I think it goes lower.” Since then, the stock has declined more than 10%.