PepsiCo Hasn't Been This Cheap Relative to Earnings in 6 Years. Here's Why That's the Signal to Buy.

PepsiCo's stock has fallen 20% since early 2024 and is trading at just 17x earnings, its lowest valuation in 6 years, due to struggles in its North American business where pricing increases have backfired and volume growth has stalled. Despite these challenges, the company's strong dividend yield of 4.3%, solid balance sheet, and activist investor involvement suggest the stock offers compelling value for long-term investors.