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PepsiCo: Upside Potential Smaller Than Downside Risk

Oct. 04, 2021 6:58 AM ETPepsiCo, Inc. (PEP)8 Comments
The European View profile picture
The European View
13.01K Followers

Summary

  • PepsiCo stock, like the broader market, has been in an impressive bull market since the financial crisis.
  • But the truth is also that the S&P 500 has clearly outperformed Pepsi since 2007. Even compared to its own peer group, Pepsi does not necessarily cut the best figure.
  • Furthermore, the downside risk clearly outweighs the upside potential in the medium term.

PepsiCo Canada-Anlage an der Falbourne St. in Mississauga, On, Kanada.

JHVEPhoto/iStock Editorial via Getty Images

The PepsiCo (NASDAQ:PEP) stock, like the broader market, has been in an impressive bull market since the financial crisis (if we exclude the temporary COVID-19 crash). However, the truth is that the S&P 500 has outperformed Pepsi. And even compared

Chart
Data by YCharts

PEP vs. SPY
Data by YCharts

PepsicCo vs S&P 500 vs Consumer Staples Select SPDR ETF
Data by YCharts

This article was written by

The European View profile picture
13.01K Followers
Runner of the TEV Blog | Private InvestorI am a long-term oriented investor and in my early thirties. I hold a law degree and a doctorate in law and love investing and talking about my and others' investments. I regularly write about my research and investments on various investor platforms and the TEV Blog. **My articles represent my opinion only and in no way constitute professional investment advice. It is the responsibility of the reader to conduct their due diligence and seek investment advice from a licensed professional before making any investment decisions.**

Analyst’s Disclosure: I/we have a beneficial long position in the shares of PEP either through stock ownership, options, or other derivatives. 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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