Alex A.C.
Value/GARP Investor, Semiconductor & Financial Analysis, Electronics MEng
PepsiCo is under pressure because consumers can no longer really afford a can of soda, as the company cut its profit outlook citing a slower North American recovery. The stock is approaching its monthly 200-period moving average, a secular bear-market line that breaks only during economic depressions. If it breaks, $75 is the next level. x.comÂ
PepsiCo's forecast for another year of just 3% growth leaves it nowhere close to cheap. It trades at 16 times 2027 earnings. x.comÂ
Insider buying points to opportunity in PepsiCo shares despite the market's pessimism. Former PepsiAmericas CEO Robert Pohlad spent $23.7 million on the stock during its deepest drawdown since the 2008 financial crisis. x.comÂ
PepsiCo faces a death spiral as GLP-1 drugs shrink snack volumes while it raises prices. Per @wallstengine, citing Bloomberg, PepsiCo plans to lift prices on select chips, soda and dips by year-end or early 2027, months after cutting snack prices by up to 15% to revive demand. North American food revenue fell 2% last quarter on flat volumes. Less volume and higher prices together will destroy the snack companies. x.comÂ
Coca-Cola looks like a great funding short, since nothing makes it immune to the risks that battered its staples peers. GLP-1 drugs, store brands, new entrants and supply-chain inflation should hit it too, and non-sugar drinks only slow the U.S. decline, though international has held up better. About 2% revenue growth is thin support for 25x earnings while peers sit at 2008 valuations; it could fall to 15x unless the other staples rebound dramatically. x.com x.com x.com x.com x.com x.com x.com … Show more
Director Robert Pohlad's $23.7 million open-market share purchase bolsters PepsiCo's risk/reward case. Buying this very solid company near its 200-month moving average looks like a solid setup. x.comÂ
PepsiCo faces a permanent headwind from GLP-1 drugs, which it has already said are affecting its business, as are alcohol companies. A post the author replies to expects fast food and snacking to be hit hard. x.comÂ
Coca-Cola looks like a short at about 25x forward earnings for a business growing revenue slower than nominal GDP. All of its recent earnings growth has come from cost efficiencies, and it should face huge headwinds from the appetite-suppressing drugs people are taking to stop eating. x.comÂ
PepsiCo is an easy buy for a long-term dividend portfolio because its diversified brands can adapt to shifting health trends. Gatorade, soda, snacks and energy drinks are categories people will never stop consuming, and the recent Poppi purchase shows that adaptability, making PepsiCo preferable even to McDonald's. @TheRonnieVShow notes the stock sits on a 17-year trendline that has held since 2009. x.com x.comÂ
Coca-Cola's forward revenue growth numbers are pitiful, yet the stock trades at 26x next-twelve-month EPS, which makes no sense. x.comÂ