Central and Eastern Europe Fund Offers Undervalued Opportunities

The Central And Eastern Europe Fund, Inc. (NYSE:CEE) is an interesting investment opportunity. The fund focuses on overlooked but developed markets in Europe, such as Poland and Hungary, which have relatively low price-to-earnings (PE) ratios compared to other developed markets. The Polish market is relatively accessible to retail investors, while the Hungarian market is less so.

PepsiCo Inc. (PEP) reported strong third-quarter earnings, with revenue of $23.94 billion and earnings per share (EPS) of $2.29, both exceeding analyst projections. The company's beverage division, particularly in North America, drove growth, offsetting a 3% decline in food sales. The beverage segment saw a 2% increase in revenue, while the food division faced challenges, with a 3% decline in revenue. Poppi brand sales surged over 50% year-over-year following its acquisition. International markets provided significant growth, with Europe, Middle East, and Africa (EMEA) and Latin America reporting 5.5% and 4% revenue growth, respectively. However, PepsiCo faced pressure from activist investor Elliott Management, which holds a $4 billion stake, pushing for operational restructuring. The company's stock has seen a year-to-date decline of about 8%, compared to Coca-Cola's (KO) 6% increase. The appointment of Steve Schmitt as CFO and the departure of Jamie Caulfield highlight leadership changes within the company. Despite these challenges, PepsiCo maintained its full-year 2025 outlook, expecting low-single-digit organic revenue growth and flat core constant currency earnings per share.

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References
PepsiCo (PEP) Stock: Beverages Rise While Snacks Slump in Q3 Earnings Report^[1] https://parameter.io/pepsico-pep-stock-beverages-rise-while-snacks-slump-in-q3-earnings-report/