PepsiCo's Rebound Seems Short-Lived: I Would Sell The Pop Of A Fragile Comeback

  • PepsiCo is considered a cash-generating powerhouse, boasting a strong 4.2% forward dividend yield and consistent free cash flow, appealing to income-focused investors. Recent Q2 earnings beat expectations, with revenue up 2.1% YoY and EPS surpassing forecasts, sparking a 7% jump in share price. Despite mixed segment performance and a significant non-cash write-down, reaffirmed guidance signals management confidence after sluggish quarters.