Jim Cramer Explains Why He's 'Concerned' About PepsiCo (PEP)

We recently published a list of 10 Stocks Analysts are Talking About Amid Trump’s Tariff War. In this article, we are going to take a look at where PepsiCo Inc (NASDAQ:PEP) stands against other stocks analysts are talking about amid Trump’s tariff war.

Markets saw some glimmer of hope as President Donald Trump indicated that he does not plan to fire Federal Reserve Chair Jerome Powell and showed openness to engage in talks with China. However, China has said in a statement that the US should dial back all unilateral duties if it’s serious in negotiations.

Andrew Slimmon, Morgan Stanley Investment Management senior portfolio manager, explained in a recent program on CNBC what made Trump blink:

“I think…April 9th was an important day because on that day Trump came out and said I didn’t like what I saw in the bond market, I didn’t like Jamie Diamon saying there’s a recession coming and he said “So I’m putting a 90-day pause on.” So in my opinion, what he really said is tariffs are important to me but a recession’s worse and so there’s the priority which he basically gave you the indication there is a Trump put out there. I don’t think it’s down 10 15 but it was when the market was almost down 20 right, credit spread started to quake.”

READ ALSO 7 Best Stocks to Buy For Long-Term and 8 Cheap Jim Cramer Stocks to Invest In

For this article, we picked 10 stocks Wall Street is talking about these days. With each stock, we have mentioned the number of hedge fund investors. Why are we interested in the stocks that hedge funds pile into? The reason is simple: our research has shown that we can outperform the market by imitating the top stock picks of the best hedge funds. Our quarterly newsletter’s strategy selects 14 small-cap and large-cap stocks every quarter and has returned 373.4% since May 2014, beating its benchmark by 218 percentage points (see more details here).

PepsiCo Inc (NASDAQ:PEP)

Number of Hedge Fund Investors: 58

Jim Cramer in a recent program on CNBC discussed a latest research report on PepsiCo Inc (NASDAQ:PEP), which talked about the impact of rising snack prices on the company:

“There’s a piece of research today that is emblematic of what makes this market so hard. So out of nowhere, Bank of America, which has been a staunch supporter of PepsiCo, downgrades it. Basically says snacks are too expensive. They’re losing share in beverages. David, when I read this, I said, “This is the kind of thing that I’m most concerned about. These food companies have raised price, raised price, raised price, and then in the interim it got too expensive.” And they talk about the convenience store and working-class people who can’t afford to get to buy things. Because there is just so much you can do in terms of cost cutting. So I—I found that Ramon Laguarta if he read this, he would say, “I got to get this thing.” But the only way you can get more is to cut twice.”

Overall, PEP ranks 9th on our list of stocks analysts are talking about amid Trump’s tariff war.. While we acknowledge the potential of PEP as an investment, our conviction lies in the belief that under the radar AI stocks hold greater promise for delivering higher returns, and doing so within a shorter timeframe. There is an AI stock that went up since the beginning of 2025, while popular AI stocks lost around 25%. If you are looking for an AI stock that is more promising than PEP but that trades at less than 5 times its earnings, check out our report about the cheapest AI stock.

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