2024-04-15 09:10:08 ET
Summary
- Pepsi has strong pricing power and a well-diversified product portfolio, positioning it well in the face of inflation.
- The snacks category is a major driver of revenue and operating profits for Pepsi, and the company has shown the ability to pass on higher costs to consumers.
- Pepsi's stock is currently trading at a premium and its upside is capped, but its robust dividends provide some downside protection.
Investment Thesis
If I were to summarize PepsiCo’s ( PEP ) prospects in two words, “pricing power." I will also add the strategic diversification of this brand’s product portfolio that helps management navigate the Pepsi boat through the choppy waters of uncertain inflationary trends on the horizon....
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PepsiCo: Regardless Of Inflation, Strong Pricing Power Floats This Boat