PepsiCo: Great Long-Term Play, Short-Term Tactical Concerns

Summary:

  • PepsiCo remains a solid long-term performer.
  • The company has seen solid growth in 2022, albeit driven by pricing rather than volumes.
  • Amidst skyrocketing interest rates, the earnings yield trails risk-free rates, making me cautious from a timing perspective.

PepsiCo Canada facility on Falbourne St. in Mississauga, On, Canada.

JHVEPhoto

Shares of PepsiCo (NASDAQ:PEP) have continued to trade near their highs, having seen relatively limited volatility in a tumultuous year 2022. In February of last year, I concluded that shares were too bubbly for me.

At the time


Disclosure: I/we have no stock, option or similar derivative position in any of the companies mentioned, and no plans to initiate any such positions within 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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