PepsiCo stock (PEP) is currently at around the same level it was trading at in late 2021 and most of 2022, reflecting the pressure that has weighed on Consumer Staples stocks in recent years. While some of this pressure can be attributed to higher interest rates, it’s important to note that PepsiCo has made substantial progress during this period. In fact, the company is on track to achieve record earnings per share (EPS) this year, projected to be nearly 22% higher than in 2022. Considering this strong performance and the potential for interest rate cuts later in the year, I am bullish on PEP stock and think it’s undervalued.
Why Has PepsiCo Stock Underperformed in Recent Years?
Elevated interest rates in recent years have weighed down PepsiCo’s stock price, as they have across the Consumer Staples sector, particularly for dividend-paying stocks. Rising interest rates increase the attractiveness of bonds and other fixed-income…
