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Opinions Norman Levine
PepsiCoPEPBUYJul 31, 2013
Norman LevineStock price when the opinion was issued
As of Jun 18, 2026. Market Open.
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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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Premium contentPepsiCo, Inc. is an American multinational food, snack, and beverage corporation headquartered in Harrison, New York, in the hamlet of Purchase. PepsiCos business encompasses all aspects of the food and beverage market. It oversees the manufacturing, distribution, and marketing of its products. Social media mentions are up 400% in the past 24h.
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%.
Stan WongPremium content
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.
Brian MaddenContinues to own shares.
Pricing power remains strong (able to keep up with inflation).
Excellent operator under current CEO.
Good portfolio of assets - snack business also growing.
Shane ObataPremium contentPepsiCo products are enjoyed by consumers more than one billion times a day in more than 200 countries and territories around the world. PepsiCo generated more than $67 billion in net revenue in 2019, driven by a complementary food and beverage portfolio that includes Frito-Lay, Gatorade, Pepsi-Cola, Quaker and Tropicana. PepsiCo's product portfolio includes a wide range of enjoyable foods and beverages, including 23 brands that generate more than $1 billion each in estimated annual retail sales. Guiding PepsiCo is our vision to Be the Global Leader in Convenient Foods and Beverages by Winning with Purpose. "Winning with Purpose" reflects our ambition to win sustainably in the marketplace and embed purpose into all aspects of the business. Social media mentions are up 170% in the past 24h.
Has long owned this. Is finally seeing a pullback during positive momentum.
Joe Terranova
This was a beverage company that got into the restaurant and snack food business. It exited the restaurant business. Fortunately it is still in the snack food business because it is still a relatively poor 2nd choice company to Coca-Cola (KO-N) in beverages but is the king in snack food businesses globally. Still attractive and relatively cheap.