We came across a bullish thesis on PepsiCo, Inc. (PEP) on Substack by Investing Lawyer. In this article, we will summarize the bulls’ thesis on PEP. PepsiCo, Inc. (PEP)’s share was trading at $152.02 as of Feb 27th. PEP’s trailing and forward P/E were 21.87 and 18.32 respectively according to Yahoo Finance.
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PepsiCo stands out as a resilient and diversified business, balancing both beverages and snack foods with a recession-resistant model that ensures consistent income. While its dividend yield of 3.80% may not be the highest, the company’s ability to sustain over 50 years of uninterrupted dividend payments highlights its strong cash flow, robust product demand, and financial stability. This makes PepsiCo an appealing option for long-term investors focused on both growth and income. Despite market uncertainties, PepsiCo has historically demonstrated its ability to rebound from trendline lows, presenting an opportunity for investors amid current market sentiment and tariff concerns. The stock’s recent movements suggest that PepsiCo may once again be at an attractive entry point. While the current price already offers a reasonable buying opportunity for long-term holders, a potential dip to the $128 region could provide an even more compelling entry for those looking to accumulate more shares. Given its reliable financial performance, history of dividend growth, and consistent ability to navigate economic cycles, PepsiCo remains a strong investment choice. Whether entering at current levels or waiting for a potential pullback, investors can expect stability and long-term value from this consumer staples giant.
PepsiCo, Inc. (PEP) is not on our list of the 30 Most Popular Stocks Among Hedge Funds. As per our database, 69 hedge fund portfolios held PEP at the end of the third quarter which was 58 in the previous quarter. While we acknowledge the risk and potential of PEP as an investment, our conviction lies in the belief that some 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.
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Disclosure: None. This article was originally published at Insider Monkey.