PEP agrees to fully acquire Sabra and Obela. The company is focused on boosting greater efficiency by reducing costs.
RFK Jr.'s likely focus on processed foods presents a midterm risk for PepsiCo, but its shift toward healthier products could mitigate this over time. PepsiCo has experienced volume declines since mid-2022 due to price hikes, but its long-term growth remains solid, supported by a diversified portfolio that should weather short-term risks. PepsiCo has historically delivered 7% to 8% annual returns, with dividends contributing about one-third, and its current valuation suggests potential for similar or higher future returns.
Walmart and Pepsi are moving in opposite directions but could both be worth a closer look.
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Dividends have the highest correlation with stock prices for Coke and PepsiCo, explaining over 90% of price changes in the last 15 years. PepsiCo's stock is undervalued by 9% compared to its predicted price, while Coke's stock is overvalued by 9.5%. Using a linear regression model, PepsiCo's price is projected to reach $203.52 by the end of 2025, a rise of over 20%.
PepsiCo and Realty Income have experienced price drops due to high inflation, but both companies remain fundamentally sound with strong long-term growth potential. Food inflation, in particular, has continued to weigh on consumer discretionary stocks like PepsiCo and Coca-Cola. PepsiCo's current valuation offers a forward P/E of 20.24x, below its 5-year average, making it an attractive buy near $160 for potential upside.
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I recommend a BUY for PepsiCo with a 12-month price target of $203.08, reflecting an 18.2% premium. PepsiCo's diversified portfolio and strategic acquisitions bolster its market position amidst competitive pressures and evolving consumer trends. Falling inflation and commodity prices are expected to improve PepsiCo's SG&A margin, enhancing profitability.
MIAMI, FL / ACCESSWIRE / November 4, 2024 / Los Angeles County's recent lawsuit against major brands over alleged plastic pollution is a prime example of regulatory systems focused on punitive measures instead of progress. The lawsuit holds companies like Coca-Cola and Pepsi accountable for the persistence of plastics in the environment, pushing the narrative of blame onto them.
Letitia James sued PepsiCo last November, seeking to hold them liable for endangering Buffalo's water supply by generating 17% of the plastic waste found in and near the Buffalo River.
PepsiCo won the dismissal of New York's lawsuit accusing the beverage and snack-food company of polluting the environment with single-use plastic packaging, as the judge criticized the state's attorney general, Letitia James, for bringing the case.