PepsiCo (PEP-Q)

The boring name in his portfolio. Yield is 3.1%, very secure, will grow around 6% over time. Very steady name, moving higher. With interest rates starting to fall, low-beta names like this will become more attractive. Paying 21x forward PE for 8% growth rate, not too bad. For the conservative part of your equity portfolio. 80% of shares are institutionally owned, so the smart money's in this stock.

It has been a great company for the past 40 years. There has been a consumer revolt on price increases. The growth rate is flat to down in the short term.

Great company. Smart to expand into snacks, unlike KO, gives diversification. Executes very well. Issue is valuation, 25+ PE range. As a value investor, not interested. Not sure the Ozempic craze is a threat, need to see ramifications.

OK, doesn't love it. Earnings were light in some sectors, but showed some resilience overall. Range-bound, kicking its way up. Consumer weaker right now, so he doesn't like consumer discretionary as much. Strong brand recognition, one of the better names in the space.

It reports Friday. Shares have been in a rut even though business is pretty good. He thinks people are worried about the impact of the hit weight-loss drugs.

Consumer products are facing pressure around the world. Don't sell just for tax reasons. Instead, ask yourself is the original thesis for why you wanted to own a stock still valid? If not, let it go. What you choose to buy instead is a separate decision.

We would be a bit agnostic on a name like PEP. It is large and stable and grows at mid-single digits but also trades at 20X forward earnings and should have tough comparable numbers over the next year, coming off of inflation pass through benefits. We think it would be fine for a 'steady eddie' type of name over the long term but also not something that excites us a whole lot.
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The valuation has always been too high, and its growth is slow.

It reports on Tuesday. The market is killing all food stocks, and PEP is saddled with the stigmna of producing junk food when obesity (given the new obesity drugs) is on people's minds. Shares have fallen lately, but he expects good earnings near-term. Sells at a not-cheap 21x PE and pays a 3.2% dividend, which is low verses the bond market. Without growth, shares will fall.

Great chart over 10+ years. Lower beta than the S&P 500. Leading global consumer powerhouse with a diverse portfolio of well-known brands. Stepping into healthier acquisitions.

Very strong balance sheet, robust cashflow, giving you a reliable dividend. More share buybacks to come. A name for reliable growth with income. Yield is 2.80%, expected to grow about 7%.

Valuations will limit their upside, now expensive, but it's a world-class brand with consistent earnings growth. A core holding.

A good company, an iconic brand, pays a good dividend and offers growth. It has diversified away from soft drinks in the last decade. Doesn't own it, because he prefers Pepsi for its exposure to salty snacks.