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Which Consumer Goods Stock is a Better Buy? By StockNews

by Mike Robinson

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© Reuters. PepsiCo and Nestle: Which consumer goods stock is better?

Consumer spending rose significantly during the first half year due to the economic recovery as well as declining unemployment. The industry saw good growth. Consumer goods stocks PepsiCo (NASDAQ:) and Nestlé (NSRGY (OTC:)) should benefit from continuing spending trends. Which stock is better? PepsiCo, Inc., (PEP), is a beverage and food company that operates in over 200 countries. American-based PepsiCo, Inc. operates seven business segments. They include Frito-Lay North America and Quaker Foods North America. Latin America. Europe. Asia Pacific. New Zealand. China Region. On the other hand, Switzerland-based Nestlé S.A. (NSRGY) is one of the world’s top food and drink processing conglomerates. It offers many food and beverage options, such as chocolates, bottled coffee, tea, coffee, milk and confectionery.

The continued economic recovery as well as an improvement in job markets fueled a significant increase in consumer spending during the first six months of 2021. Personal consumption expenditures, also called consumer spending, increased 12% in 2021’s second quarter after an 11.4% increase during the first quarter. The consumer goods sector should continue to benefit from the continuing spending trends. The industry shouldn’t be affected by any economic downturns in the short term, considering the inelastic nature of the demand. Both NSRGY as well as PEP should continue to reap the benefits of this environment.

PEP gained 7.9% during the last six-months, while NSRGY lost 5.9%. In terms of the past year’s performance, PEP is the winner with 14.2% gains versus NSRGY’s 2.9%. Furthermore, PEP’s 4.5% gains year-to-date compares with NSRGY’s 2.8% returns.

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