Stock Strategist: Pepsi's Snack Business Well Suited for Pandemic

[Morningstar Logo]( [Company Site]( [Company News]( [Membership]( [Portfolio]( [Stocks]( [Options]( [Funds]( [ETFs]( [Markets]( [Tools]( [Personal Finance]( [Discuss]( Stock Strategist Pepsi's Snack Business Well Suited for Pandemic This allows the company to focus on strategic priorities. [tab_bar] by Nicholas Johnson | 4/29/2020 2:30:00 PM Heading into wide-moat PepsiCo’s PEP first-quarter earnings print, with its geographic mix somewhere in the middle of the spectrum relative to Coke and Keurig Dr Pepper, it was unclear how much of a bellwether these peers’ results would be. As such, we think investors were keenly focused on: 1) the resilience of the business in the quarter and 2) whether this performance was sustainable throughout the COVID-19 onslaught. Management commentary turned out to be mixed, with stellar results (top- and bottom-line beats relative to CapIQ consensus) juxtaposed with a retraction of full-year guidance and an expectation for a low-single-digit decline in second-quarter organic sales. As we update our near-term outlook, we do not plan to change our $140 fair value estimate and see shares as fairly valued. To read more, click [here](. Sponsored Links [Buy a Link Now]( Podcast: Investing Insights From Morningstar.com Listen to a roundup of the latest videos featured on Morningstar.com [in this podcast]( available through iTunes. Free Issue | Morningstar's Stock Newsletter >> Morningstar StockInvestor is celebrating more than 10 successful years of high-quality stock investing. Its two real-money portfolios have outperformed the S&P 500 since 2001. [Get new ideas for the core of your stock portfolio](. Search Most Recent Articles [Low Volatility Doesn't Mean No Volatility]( [8 Cheap Stocks with Solid Brands]( [Wade Pfau: The 4% Rule Is No Longer Safe]( Latest Analyst Reports [Corning]( [Packaging Corp of America]( [TransUnion]( [3M]( [Digital Realty Trust]( ABOUT OUR EMAIL TO UNSUBSCRIBE this email address to the Stock Strategist newsletter, please click "reply" and then click "send." This will unsubscribe only this email address to this specific newsletter. All subscription changes will take effect within one business day. Replies are not read by individuals, so please do not use this for queries about Morningstar.com. If you have questions about Morningstar.com or your membership, send a note to [joe@morningstar.com](mailto:%20joe@morningstar.com). ABOUT OUR PRIVACY POLICY Please [click here]( to learn about Morningstar's privacy policy. (c) Copyright 2020. Morningstar, Inc. 22 West Washington Chicago, Illinois, 60602 All rights reserved.