PepsiCo (PEP)

He expects a great report from them on Thursday, because their snack business given them more consumer exposure than Coke has. Their last quarter was fine, but the market yawn from being bored with consumer staples. He bets their business is accelerating.

Allan Tong’s Discover Picks Analysts such as Jim Cramer would buy Pepsi stock now as the number of Covid cases could rise as the weather turns colder and more people stay at home to snack. Analysts expects its EPS to reach $1.50, which would return to last year’s levels. Pepsi pays a dividend just under 3%. The trailing PE has ballooned from 15.62x last December to the current 26.85x, which will give some investors pause. Read PEP and NVDA: 3 More Top Recognized ESG Investing Options for our full analysis.

Very well-managed. They're not a straight beverage company like Coke. Pepsi has Frito-Lay, which is not healthy, but amounts to 50% of the company's profits. Pepsi has marketed F-L well. Pepsi is defensive and has sold off less than the current pullback.

Not enough growth here and he barely invests in consumer staples. A well-run company though. If you want dividend growth, look at the banks or utilities instead.

Has been struggling. Their core product was carbonated soft drinks, for which demand has been shrinking. They have diversified away from that. Over 50% of their revenues now come from other types of products. However, he prefers Coke to Pepsi. Coke and Pepsi have similar yield.

There is a lot of pressure on carbonated beverages. It’s shrinking year-over-year. This has transitioned away better than Coca-Cola (KO-N) has. More than 50% of revenues comes from non-carbonated beverages. They have over 20 brands that generate over $1 billion a year. He would consider this if it were cheaper. Trading at over 20X Price to Earnings.