KDP, PEP: 2 Deeply Discounted Beverage Stocks to Watch

Broader markets were weighed down last week, thanks to Fed chair Jerome Powell’s latest comments, which likely helped push 10-year rates briefly above 5%. Resilient staple stocks like KDP and PEP, which typically withstand market turbulence, have lately faced challenges. This isn’t just due to macro unknowns but a headwind specific to food and beverage stocks. Indeed, the headwind I speak of is the effect of Ozempic and other weight-loss drugs and their impact on consumption.

Such obesity drugs, which, while popular among people looking to shed pounds, seem extremely overhyped at this point — so much so that I think the latest sell-off in the food and beverage scene may have produced numerous opportunities for investors looking to ride out a rough economic landing.