The Motley Foolยท2025-06-24 08:50Group 1: Target Corporation - Target has faced significant challenges, with its stock down 64%, but it has a history of resilience, having paid and raised dividends for 53 consecutive years [4][5] - Current issues include declining sales due to inflation, high interest rates, tariff uncertainty, and a backlash from reduced diversity initiatives [5][6] - Target is implementing a management shakeup through a new Enterprise Acceleration Office to improve execution and plans to open approximately 300 new stores over the next decade [7][8] - The stock currently has a low price-to-earnings (P/E) ratio of 10.5 and offers a dividend yield of 4.7%, supported by a 60% dividend payout ratio [8] Group 2: PepsiCo - PepsiCo's stock is down 34%, facing challenges from tighter consumer finances and competition from store brands, as well as the impact of weight loss drugs on its product demand [9][10] - Despite these challenges, PepsiCo remains a resilient company with a diverse portfolio of brands and a manageable dividend payout ratio of 72% [10] - The company is adapting by acquiring healthier food and beverage brands and innovating with products like zero-sugar sodas [11] - PepsiCo's current dividend yield is 4.25%, and its P/E ratio has dropped to 19, below its 10-year average of 26, indicating potential for respectable growth moving forward [12]