PepsiCo: Flat Q3 Results, But Rising Opportunity (Upgrade) (NASDAQ:PEP)

Core Viewpoint - PepsiCo has been overlooked by the market as investors focus on understanding AI supply chains and identifying key players and bottlenecks in the industry [1] Group 1: Company Performance - Over the last three months, PepsiCo has not performed well in the eyes of investors [1] - The company is facing challenges as the market shifts its attention to hyperscalers and AI-related supply chains [1] Group 2: Investment Strategy - The emphasis on sustained profitability, characterized by strong margins, stable and expanding free cash flow, and high returns on invested capital, is highlighted as a more reliable driver of returns than valuation alone [1] - The management of portfolios with a focus on undervalued growth stocks and high-quality dividend growers is noted as a strategic approach [1]