Group 1 - The Consumer Staples Sector ETF (XLP) experienced a significant rally from mid-January to early March, driven by a broader risk-off trade that shifted investments from high-momentum equities to blue-chip stocks [1] - This shift in investment strategy indicates a growing preference for stability and reliability in the consumer staples sector during uncertain market conditions [1] Group 2 - PepsiCo is highlighted as a key player within the consumer staples sector, benefiting from the recent market trends favoring established companies [1]

Sometimes, we analysts write an article on a stock whose thesis requires many hundreds or thousands of words to rigorously piece together into a conclusion. In my last article on Pepsico (PEP) , while I hope readers went "cover to cover" on it, AsI'm Rob Isbitts, founder of Sungarden Investment Publishing. I run the new investing group Sungarden YARP Portfolio, a community dedicated to navigating the modern investment climate with humility, discipline, and a non-traditional approach to income investing. I'v ...

PURCHASE, N.Y., March 13, 2025 /PRNewswire/ -- PepsiCo, Inc. (NASDAQ: PEP) today announced that it will issue its first-quarter 2025 (ending March 22) financial results and other related information on Thursday, April 24, 2025 by posting the following materials and links on the company's website at www.pepsico.com/investors. Press release and 10-Q at approximately 6:00 a.m. EDT Prepared management remarks (in PDF format) at approximately 6:30 a.m. EDT Live question and answer session for analysts with Ramon ...

Core Viewpoint - The ongoing trade dispute between the U.S. and key trading partners is disproportionately affecting certain companies, particularly those facing tariffs, such as PepsiCo [1]. Group 1: Company Impact - PepsiCo has been negatively impacted by the current tariffs, resulting in a nearly 3% decline in its share price on a day when the S&P 500 index gained 0.5% [2]. - A group of major American food and drink manufacturers, including PepsiCo, has formally requested exemptions from tariffs on certain ingredients not available from U.S. sources, such as cocoa and fruit [3][4]. - Jefferies has downgraded PepsiCo's rating from buy to hold, citing general weakness and market share losses as reasons for the delayed turnaround [5]. Group 2: Industry Response - The letter from food and drink manufacturers to President Trump emphasizes the need for a targeted removal of tariffs on specific inputs to protect domestic manufacturers and mitigate consumer inflation [4]. - The potential fallout from the trade dispute raises concerns about the overall health of the food and beverage industry, suggesting that PepsiCo may be a stock to avoid for the time being [6].

I aim to invest in companies with perfect qualitative attributes, buy them at an attractive price based on fundamentals, and hold them forever. I hope to publish articles covering such companies approximately 3 times per week, with extensive quarterly follow-ups and constant updates.I manage a concentrated portfolio targeted at avoiding losers and maximizing exposure to big winners. This means that often I'll rate great companies at a 'Hold' because their growth opportunity is below my threshold, or their d ...

Jefferies downgraded PepsiCo Inc (NASDAQ:PEP) stock to "hold" from "buy," and cut its price target to $170 from $171. The analyst in coverage cited limited upside potential amid a soft beverages market.Analysts were divided on PEP coming into today, with 10 calling it a tepid "hold" or worse, while 10 said "strong buy." Should more firms swing to the bearish side, the security could dip even lower.The shares are on track for their third loss in the last four sessions, and have fallen more than 15% in the la ...

Group 1: Company Overview - Coca-Cola focuses exclusively on beverages, leveraging a vast global distribution network and strong marketing skills, making it a leader in the consumer staples sector [2] - PepsiCo, while also a major beverage player, diversifies its offerings with snacks and packaged food products, maintaining a strong distribution network and marketing capabilities [3] - PepsiCo ranks as the No. 1 snack brand and holds a solid No. 2 position in the broader beverage market, showcasing its diversified business model [4] Group 2: Dividend Strength - Both Coca-Cola and PepsiCo are recognized as Dividend Kings, indicating robust underlying business models, with Coca-Cola having a longer dividend streak [5] Group 3: Current Performance - Currently, Coca-Cola is outperforming PepsiCo, which is experiencing some business weakness, particularly after a period of significant price increases due to inflation [6][7] - PepsiCo reported organic sales growth of 2% and core earnings growth of 9% in 2024, with expectations for similar performance in 2025 [7] Group 4: Stock Valuation - PepsiCo's stock has declined approximately 20% from its peak in 2023, resulting in a historically high yield and price-to-sales and price-to-earnings ratios below five-year averages, suggesting it is undervalued [8] - In contrast, Coca-Cola's stock has rallied, leading to a lower dividend yield and price ratios above their five-year averages, making it appear more expensive [9] Group 5: Investment Recommendation - For long-term investors, particularly those focused on income, PepsiCo presents a more compelling investment opportunity due to its attractive yield of 3.5% following Coca-Cola's recent price rally [10]

In the latest trading session, PepsiCo (PEP) closed at $153.88, marking a -0.2% move from the previous day. The stock's performance was behind the S&P 500's daily gain of 1.12%. On the other hand, the Dow registered a gain of 1.14%, and the technology-centric Nasdaq increased by 1.46%.Prior to today's trading, shares of the food and beverage company had gained 7.46% over the past month. This has outpaced the Consumer Staples sector's gain of 6.52% and the S&P 500's loss of 4.13% in that time.Investors will ...

When the market narrative becomes too widely accepted, excess seems to be created in some areas of the economy as businesses prepare for what’s coming their way. Today’s stock market seems to be focused on one theme and one theme only: stagflation. This rare economic condition, not seen since the 1970s, poses a particular risk for investors, though not one that can’t be hedged or managed. But before investors learn about these strategies and safety stocks, they must first understand stagflation. Simply put, ...

Core Viewpoint - PepsiCo Inc. has experienced a significant recovery in its stock price, rising by 7.1% over the past month, primarily due to strong fourth-quarter 2024 results that exceeded earnings estimates and showed year-over-year improvement [1][2]. Financial Performance - The fourth-quarter 2024 results demonstrated effective cost controls and strategic investments that enhanced market competitiveness, contributing to better bottom-line results [1][9]. - The company's top line also surpassed consensus expectations, with international business showing a 6% year-over-year organic revenue growth and a 260 basis points expansion in core operating profit margin [10]. Market Position - PepsiCo's stock is currently priced at $155.99, reflecting a 10.2% premium to its 52-week low of $141.51 and a 15% discount from its 52-week high of $183.41, indicating potential upside [5]. - The stock trades above its 50-day moving average, suggesting bullish sentiment in the market [6]. Growth Drivers - The company is well-positioned to benefit from strong consumer demand, a diversified portfolio, modernized supply chain, improved digital capabilities, and flexible distribution systems [8]. - PepsiCo's productivity and cost-management efforts are expected to enhance profitability and support brand growth, innovation, and channel expansion [9]. International Expansion - Developing and emerging markets present significant growth opportunities for PepsiCo, with tailored distribution models and locally relevant products being key strategies [11]. - The company anticipates continued progress in expanding its international business and improving its North America segment performance in 2025 [12]. Valuation Metrics - PepsiCo is trading at a forward 12-month P/E ratio of 18.6X, which is below the industry average of 19.22X and the S&P 500's average of 21.95X, indicating a potential buying opportunity [13]. - Despite the lower valuation compared to peers, there are concerns that this may signal underlying issues rather than a straightforward investment opportunity [15]. Analyst Sentiment - The Zacks Consensus Estimate for PepsiCo's EPS for 2025 and 2026 has decreased by 2.5% and 3.1%, respectively, indicating a negative sentiment among analysts [17]. - For 2025, the consensus estimates imply modest growth of 0.1% in sales and 1.7% in EPS year-over-year, with slightly better growth projected for 2026 [18]. Challenges - Despite inherent strengths, PepsiCo faces ongoing headwinds, including subdued demand in its convenient food business and impacts from product recalls, which contributed to a 0.2% year-over-year revenue decline in Q4 2024 [20][21]. - Increased pricing due to inflation has led to reduced volumes as consumers adjust their spending habits, further complicating the company's performance in North America [21][22].