11 Most Undervalued Blue Chip Stocks to Buy Now

6. PepsiCo, Inc. (NASDAQ:PEP)

Forward Price-to-Earnings Multiple: 16.23

Upside Potential: 18.00%

Number of Hedge Fund Holders: 68

PepsiCo, Inc. (NASDAQ:PEP) is included in our list of the most undervalued blue chip stocks to buy now.

On December 17, 2025, PepsiCo, Inc. (NASDAQ:PEP) saw Citi raise its price target on its stock from $165 to $170, while reiterating a ‘Buy’ rating. The update came as part of the firm’s 2026 sector outlook. While expressing moderate enthusiasm for non-alcoholic beverages more broadly, the firm highlighted an improvement in the stock’s fundamentals, driven by inventory destocking cycles and easing consumption comparisons. Benefiting from these conditions, the firm believes the company is well-positioned to translate its efficiency gains into steadier earnings momentum. At the same time, the analyst’s optimism is reinforced by the company’s ongoing operational transformation.

On January 6, 2026, PepsiCo, Inc. (NASDAQ:PEP) announced its multi-year, industry-first collaboration with Siemens and Nvidia. The move was first announced at CES 2026. The partnership aims to digitize and re-engineer the company’s global manufacturing and supply chain footprint using AI-driven, physics-based digital twins. Furthermore, the move supports the company’s shift toward a digital-first planning model, which will allow plants and warehouses to be virtually simulated, stress-tested, and optimized before any physical build. Looking ahead, the company appears well-positioned to operate on a lower-cost growth path, execute faster capacity scaling, and see improved returns on invested capital amid rising demand for production and distribution capacity.

PepsiCo, Inc. (NASDAQ: PEP), a global food and beverage leader, operates in snacks and drinks across diversified regional segments.