26 Stocks Jim Cramer Offered Insights On

13. PepsiCo, Inc. (NASDAQ:PEP)

Number of Hedge Fund Holders: 68

PepsiCo, Inc. (NASDAQ:PEP) is one of the stocks Jim Cramer offered insights on. A caller expressed concern over the stock purchased at $149, noting its continued decline despite a $4 billion investment from Elliott Management, and asked whether to hold, buy more, or exit the position. Cramer said:

“Right here at 141, it is bottoming… You know it’s that 4% yield… That 4% yield brings people in because it’s a safe yield, and I think that management is getting energized to do some good things. You own that stock, do not trade it.”

PepsiCo, Inc. (NASDAQ:PEP) manufactures, markets, and distributes a wide range of beverages and convenient foods, including snacks, cereals, dairy, and ready-to-drink products. Cramer mentioned the company during the September 10 episode and commented:

“I know PepsiCo’s never going to be up 100 points in one day, but if you’re building a diversified portfolio of mostly growth stocks, as you should, you can do a lot worse than owning a premier growth company like PepsiCo. And by the way, it still is a premier growth company. Why PepsiCo? First and most cogent, Elliott Management just took a $4 billion stake in PEP. And this activist hedge fund wants change… You got a $142 stock here that traded at 196 two and a half years ago, and it now, because it’s fallen so much, yields almost 4%.

Do you know it used to trade at a premium to Coca-Cola, the most revered consumer packaged goods stock? Now it trades at a big discount. Why can’t it go back to a premium someday?… You buy a stock like PepsiCo, you let that dividend compound over time, and you’re going to make a ton of money. Sure, it won’t be immediate, but you’re buying the stock at what amounts to be a historic discount with lots of levers to pull, and they will be pulled as long as Elliott’s in there pulling with you.”