PepsiCo: A Resilient Company With Expansion Opportunity Abroad

Summary:

  • Company’s stock price has dropped by over 15% from its recent high.
  • The business has a great moat with possible expansion opportunity abroad.
  • Possible issues come from the free cash flow side and a low current ratio.
  • I believe PepsiCo is a buy opportunity today offering investors stability and a great dividend. Moreover, it is fairly priced considering the dividend discount model valuation.

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Analyst’s Disclosure: I/we have no stock, option or similar derivative position in any of the companies mentioned, but may initiate a beneficial Long position through a purchase of the stock, or the purchase of call options or similar derivatives in PEP over the next 72 hours. I wrote this article myself, and it expresses my own opinions. I am not receiving compensation for it (other than from Seeking Alpha). I have no business relationship with any company whose stock is mentioned in this article.

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