Jim Cramer Says PepsiCo is Too Cheap Yet Overlooked

PepsiCo, Inc. (NASDAQ:PEP) is one of the stocks that Jim Cramer shared insights on. Cramer discussed the stock’s valuation during the episode, as he said:

“If you want to know a stock that’s too cheap relative to its growth rate, but nobody talks about it anymore, why don’t you check out the stock of PepsiCo? It trades at a stunningly low 17 times earnings. I mean, what gives? Well, how about GLP-1 drugs? How about RFK Junior at Health and Human Services, who despises junk food even as he seems to embrace junk science? How about the desire to stay healthy? All these have weighed on PepsiCo stock. Of course, don’t forget they own Frito-Lay. Maybe it’s finally overdone. I don’t know it. It’s a tough industry all of a sudden.”

PepsiCo (NASDAQ:PEP) produces and sells a wide range of beverages and packaged foods, including snacks, cereals, dairy products, and soft drinks. The company’s portfolio features well-known brands like Lay’s, Gatorade, Quaker, and Pepsi.

While we acknowledge the potential of PEP as an investment, we believe certain AI stocks offer greater upside potential and carry less downside risk. If you're looking for an extremely undervalued AI stock that also stands to benefit significantly from Trump-era tariffs and the onshoring trend, see our free report on the best short-term AI stock.

READ NEXT: 30 Stocks That Should Double in 3 Years and 11 Hidden AI Stocks to Buy Right Now.

Disclosure: None. This article is originally published at Insider Monkey.