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PepsiCo: A Defensive Blue-Chip With Upside In The Post-Pandemic Reopening

May 04, 2021 5:03 PM ETPepsiCo, Inc. (PEP) Stock14 Comments

Summary

  • PepsiCo reported Q1 earnings highlighted by better-than-expected growth and solid earnings.
  • With overall resilient sales of snacks and beverages, the category is likely to get a boost into the post-pandemic recovery with greater availability across different channels.
  • We see value in shares at the current level and expect more upside through the year ahead supported by several bullish tailwinds.
  • Looking for more investing ideas like this one? Get them exclusively at Conviction Dossier. Learn More »

Metal cans with soda refreshing drinks
Photo by scanrail/iStock via Getty Images

PepsiCo, Inc. (NASDAQ:PEP) was able to successfully navigate the COVID pandemic with a globally diversified business across snacks and beverages. A theme over the past year has been the strong sales of packaged

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This article was written by

Dan Victor, CFA profile picture
18.6K Followers

Dan Victor, CFA is a market professional with more than 15 years of investment management experience across major financial institutions in research, strategy, and trading roles.

Dan leads the investing group Conviction Dossier, where his focus is on helping investors stay ahead of market trends and inflection points. Dan’s investing vehicles of choice are growth stocks, tactical exchange-traded funds, and option spreads. He shares model portfolios and research to help investors make better decisions, via his Investing Group’s active chat room.

Analyst’s Disclosure: I/we have no positions in any stocks mentioned, but may initiate a long position in PEP over the next 72 hours. I wrote this article myself, and it expresses my own opinions. I am not receiving compensation for it (other than from Seeking Alpha). I have no business relationship with any company whose stock is mentioned in this article.

Seeking Alpha's Disclosure: Past performance is no guarantee of future results. No recommendation or advice is being given as to whether any investment is suitable for a particular investor. Any views or opinions expressed above may not reflect those of Seeking Alpha as a whole. Seeking Alpha is not a licensed securities dealer, broker or US investment adviser or investment bank. Our analysts are third party authors that include both professional investors and individual investors who may not be licensed or certified by any institute or regulatory body.

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Comments (14)

d
Which PEP considered buying Danone
M
Solid company dividend aristocrat PEP, good for any portfolio.
A
Good article. Good company. A bit pricey now I think.
craftbrewinfo profile picture
Well written article . The financials look good. A risk however is the growing payout ( not mentioned). I also liked the comparison to KO, and this is why I’m invested in PEP over KO.. the diversified portfolio. Long PEP.
Steve Kean profile picture
Like my dad used to say, there’s a lot of PEP-PEP-PEP in Pepsi-Cola!

Definitely a must have in any well-balanced portfolio.

Long PEP-PEP-PEP
josephaoppenheim profile picture
Defensive? Hardly, it’s been an offensive stock for ages. As for jokers who want to bail on KO, the same thing.
Dan Victor, CFA profile picture
Thanks for reading. If you enjoyed the article consider folly to hear about our next Seeking Alpha idea. - BOOX
SleepyInSeattle profile picture
Last news: PepsiCo raises dividend by 5% to $1.075
j
@SleepyInSeattle announced quite awhile ago
SleepyInSeattle profile picture
good news, regardless....
Dan Victor, CFA profile picture
@SleepyInSeattle yes, PEP mentioned the hike back in the Q4 earnings report but only formally "declared" the payout yesterday.. next ex-dividend date is June 3rd (so you have to buy it before that to be eligible for the dividend)
Risk Professor profile picture
Thinking of switching out of woke Coke to Pepsi. Thanks for the informative article.
craftbrewinfo profile picture
@Risk Professor that’s exactly what I did when that be less white nonsense broke. Have not looked back since !
C
@craftbrewinfo I second that. Coke may taste good but it’s leadership is woke. Bad leadership is a sign of a bad investment.
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