"PepsiCo has taken a beating since mid-2023 for various reasons, with the most prominent one being GLP-1 drugs. That said, I do not think these weight loss drugs were enough to throw off its entire customer base."
"PEP stock now sits at just 17 times forward earnings, which is very low for a dependable Dividend Aristocrat stock. In the 2010s, PepsiCo had far lower growth rates and was struggling to grow its sales, but the stock still kept rising."
"The biggest catalyst that could re-rate PEP stock upward would be lower Treasury yields. PEP stock has a dividend yield at 3.75%, which is ju."
Wall Street is increasingly selective with AI stocks, while Dividend Aristocrats like PepsiCo, Hormel Foods, and Beckton Dickinson are overlooked. Investors are beginning to shift capital into these dividend stocks, which provide healthy yields and upside potential. PepsiCo has faced challenges but remains a dominant player in the snack market. Its stock is undervalued at 17 times forward earnings, and a recovery is expected within 24 months, especially if Treasury yields decrease.
Read at 24/7 Wall St.
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