Pepsi’s stock was trading at $135.38 on 5th July, with trailing and forward P/E ratios of 19.91 and 15.69 respectively. Pepsi’s snack division earns more than beverages, but recent underperformance compared to Coca-Cola is evident, with a 24% decline in stock while Coca-Cola rose by 103% in the last 2 years.

Pepsi faced challenges with missed sales forecasts, organic growth reduction, and a product recall, impacting demand. However, easing inflation and rising consumer confidence could boost sales. The recent acquisition of Poppi and growth in high-margin products like Pepsi Zero offer potential revenue and profit growth.

Despite recent challenges, the bullish thesis on Pepsi remains, citing undervaluation relative to Coca-Cola and strong revenue mix. Recent catalysts such as easing inflation, new product launches, and the Poppi acquisition support positive outlook. While not among the 30 Most Popular Stocks Among Hedge Funds, Pepsi is seen as a potential investment opportunity.

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Read more at Yahoo Finance: Pepsi (PEP): A Bull Case Theory