Pepsi - on my radar

The stock of PepsiCo is up year to date, exceeding Coca-Cola, but behind the S&P 500. With a solid business strategy, PepsiCo continually grows sales and profits while responding to shifting consumer behaviour. They are ideally situated to expand in the years to come. Future growth is fueled by the omnichannel strategy, which also incorporates e-commerce and away-from-home activities, the previously mentioned brand adaptability, and the pep+ plan. For instance, 53% of beverages are sugar-reduced. Targets for reducing salt have been met by 66% of convenient foods.
Unfortunately, the stock price has already factored in a significant portion of the expected earnings. As a result, the adjusted PE ratio would still be higher than 20 based on an adjusted EPS of $8.74 in 2025. But PepsiCo stock has never been inexpensive, so investors hoping for significant price drops are probably better off staying away from the market for good. Only the extreme Corona crisis crash in the previous five years experienced a greater share price loss than the current one. Pepsi's adjusted P/E ratio for the past 15 years has hovered around 20.5, which is high for a company with a very cautious growth strategy. The valuation is considerably more pricey right now, at 25. The P/C ratio and the current dividend yield both fit this description.
Although Pepsi is a superb firm with fantastic global brands, its price is still high. Pepsi is on my radar as an investment if there is any additional weakness, even though it is still pricey.
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