Jim Cramer Says PepsiCo is “Worth a Lot More Than It’s Selling For”

While Cramer praised PepsiCo, Inc. (NASDAQ:PEP), he did point out the possibility of it being on the receiving end of bans on artificial ingredients.

“Then let’s go [to] food. PepsiCo is, by all standards, an amazing company, worldwide franchises and beverages, and snacks. While its beverage business has a formidable competitor in Coca-Cola, their Frito-Lay snack business, well, come on, it’s the best in the world. I’ve never seen the stock this far from its high. It’s at $128, down from $183. It’s down to the point where it yields roughly 4.4%. But what happens if the Secretary of Health and Human Services goes after the snack business for excess salt? I don’t know because it can have excessive weight if you eat too many of them, like what else wouldn’t? Or maybe says that soda has to be a natural color, whatever color that is. Does 4.42% in yield protect you from that? Obviously, today’s sellers don’t think so, but this company’s worth a lot more than it’s selling for. I just don’t know when it stops going down.”

A close up of a glass of a refreshing carbonated beverage illustrating the company’s different beverages.

PepsiCo (NASDAQ:PEP) is a large company that makes, markets, and distributes a variety of beverages and snacks. The company’s products are sold under brands like Pepsi, Lay’s, Gatorade, Doritos, Tropicana, and Aquafina.

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