Is PepsiCo Stock a Buy?
If you’ve ever tucked into a packet of Frito-Lay potato chips while watching a movie at home or refreshed yourself with a can of Gatorade after a gym workout, you would be enjoying one of the myriad brands and products offered by PepsiCo (NASDAQ: PEP). The food and beverage giant owns a multitude of brands that it has built up steadily over the years. Its flagship product, Pepsi, is a brand name you’ll see in countless restaurants and supermarkets.
The coronavirus pandemic has, however, hurt a swath of food and beverage companies, as cafes and restaurants have been forced to temporarily shut around the globe due to lockdowns and movement restrictions. As more people work from home and commute less, they also pay fewer visits to food establishments, thus depressing the sales of many food companies.
Investors will rightly wonder if PepsiCo’s business has been adversely affected and if growth may have stalled for the company. Does its stock still qualify as a buy?