11 Oversold Global Stocks to Buy According to Hedge Funds

1. PepsiCo, Inc. (NASDAQ:PEP)

RSI: 33.27

Number of Hedge Fund Holders: 69

​​PepsiCo, Inc. (NASDAQ:PEP) is a food and beverage company known for iconic beverage and snack brands like Pepsi, Mountain Dew, Gatorade, Lay’s, and Doritos. PEP is a global player as its products are distributed in over 200 countries. The company also ranked ninth on our recent list of 10 Stocks Analysts are Talking About Amid Trump’s Tariff War.

PepsiCo, Inc. (NASDAQ:PEP) reported modest Q1 2025 performance, although volumes remain weak, early signs from price-pack adjustments suggest improved unit performance, especially in convenience channels. Leadership emphasized ongoing investments in consumer-permissible and functional snacks while working to stabilize service disruptions caused by a recent SAP implementation. Portfolio expansion efforts via acquisitions were cited as critical to maintaining relevance with evolving consumer preferences.

Despite maintaining its top-line growth guidance, PepsiCo, Inc. (NASDAQ:PEP) revised its full-year EPS outlook due to new tariff costs, consumer uncertainty, and subdued performance in some products. Management stressed that these headwinds are being actively mitigated through strategic pricing, execution efficiency, and selective reinvestments in core brands. International markets remain a bright spot, with countries like India and Brazil showing strong momentum, although China and Mexico demonstrated relative softness. Overall, the company remains focused on balancing short-term pressures with long-term brand health and margin expansion​

Overall, PEP ranks first on our list of oversold global stocks to buy according to hedge funds. While we acknowledge the potential of PEP to grow, our conviction lies in the belief that AI stocks hold greater promise for delivering higher returns and doing so within a shorter time frame. There is an AI stock that went up since the beginning of 2025, while popular AI stocks lost around 25%. If you are looking for an AI stock that is more promising than PEP but that trades at less than 5 times its earnings, check out our report about this cheapest AI stock.

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