Highlights include:

The Stock Market

• The current environment feels a bit bubble-like with daily leadership rotating from one sector group to another.
• Some concept stocks are moving sharply to the upside without regard to underlying fundamentals.
• One way to balance speculation is to focus on dividend paying stocks that are attractively valued — where there is income combined with potential appreciation.

PepsiCo, Inc. (PEP)

• Pepsi remains well positioned given its strong brand portfolio, especially Frito Lay, and long-term growth opportunities in Beverages.
• In the last few months, people are eating more snacks while at home. We don't know if this is a structural change to how we eat, but Pepsi launched Snacks.com, a direct-to-consumer website that is well positioned to serve the shift toward online shopping habits which have accelerated during the pandemic.
• Its likely that Pepsi will pivot Mountain Dew toward the Energy Drink category with new innovation and marketing. This is a growing area that could drive top line growth.
• Stock is trading at 23x next year's EPS of $5.87.
• Dividend yield 3.1%.

FedEx Corp (FDX)

• Fedex shares were already down going into coronavirus because of trade war concerns and investors remain uncertain how competition from Amazon logistics might impact delivery carriers.
• During the quarantine, we have seen very high volume shipments from online orders.
• Both UPS and Fedex have raised delivery surcharges to its high volume customers, and this pricing power could continue through the year.
• Investors should watch to see if Fedex benefits as states reopen and if pent-up demand drives a return to its more profitable segment, shipments to business customers.
• FedEx shares are trading at just 14.4x next year's consensus earnings estimate of $10.02.

What are your thoughts on the resilience of the stock market and risks ahead?