PepsiCo, Inc. (NASDAQ:PEP) is one of the stocks that Jim Cramer recently commented on. During the episode, Cramer noted that the company “sold a ton of junk food” despite the rise of GLP-1 weight loss drugs. He remarked:
“PepsiCo’s now up almost 20 points from its low. Why? It’s important to remember that PepsiCo reported a terrific quarter with sugar water, and Frito-Lay, two categories that were supposed to be on life support thanks to the rise of the GLP-1 weight loss drugs; those injections reduce your craving for junk food. PepsiCo sold a ton of junk food.”
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PepsiCo (NASDAQ:PEP) produces a wide range of beverages and packaged foods, including snacks, cereals, dairy products, and ready-to-drink offerings, and sparkling water systems. On July 11, Cramer called it a stock “too cheap relative to its growth rate.” He said:
“If you want to know a stock that’s too cheap relative to its growth rate, but nobody talks about it anymore, why don’t you check out the stock of PepsiCo? It trades at a stunningly low 17 times earnings. I mean, what gives? Well, how about GLP-1 drugs? How about RFK Junior at Health and Human Services, who despises junk food even as he seems to embrace junk science? How about the desire to stay healthy? All these have weighed on PepsiCo stock. Of course, don’t forget they own Frito-Lay. Maybe it’s finally overdone. I don’t know it. It’s a tough industry all of a sudden.”
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Disclosure: None. This article is originally published at Insider Monkey.