Is The 40% Rally In PepsiCo Stock Justified?

Is The 40% Rally In PepsiCo Stock Justified?

Share to Linkedin KIEV, UKRAINE - 2021/03/06: A man walks past an advertising banner of Pepsi placed in Kiev, Ukraine. ... [+] (Photo by Pavlo Gonchar/SOPA Images/LightRocket via Getty Images) PepsiCo stock (NASDAQ NDAQ : PEP) trades at $144 currently and is up 5% from its level at the beginning of 2020. However, the stock is still down compared to the levels seen before the pandemic. PEP stock traded at $146 in February 2020 (just before the outbreak of the coronavirus pandemic) and is still 1% below that level. Also, the stock has gained almost 40% from the low of $105 seen in March 2020 and we believe that this rise is justified. The rally was driven by economic as well as company-specific factors. The successful rollout of the vaccination program and stimulus measures have led to expectations of faster economic recovery and rise in consumer spending. This will benefit a food and beverage giant like PepsiCo PEP improve its sales and margins. Additionally, the recent rally is also a reflection of the continued innovation at the company. With PepsiCo having benefited from the at-home consumption trend, it has recently introduced the Neon Zebra – part of the non-alcoholic cocktail