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Full disclosure: in the Pepsi challenge, I prefer Coke. In terms of investments, though, I overwhelmingly prefer PepsiCo (NYSE: PEP). The shares have fallen hard from their January 2008 peak, but PepsiCo won some respect on the Street recently for fearlessly backing its 2008 earnings outlook -- rather than dramatically slashing it, which has become the latest trend among companies large and small.

In the U.S., firms that produce fizzy beverages, snacks, and convenience foods nearly qualify as defensive stocks. Just check out some of the workhorses in Pepsi's product line: Cheetos, 7 Up, Doritos, Aunt Jemima, Quaker Oats, Gatorade, Rice-A-Roni, Fritos, and Rold Gold pretzels. Not to diminish some of the greater accomplishments our country can claim, this list is comprised almost entirely of prepackaged American icons.

Of course, we live in a global economy, and PepsiCo knows it. While Coca-Cola (NYSE: KO) has caught plenty of flack for environmentally unfriendly practices, Pepsi has been a corporate leader in the push for more "green" technologies ... which brings me to my affinity for Chairman and Chief Executive Indra K. Nooyi.

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Cheap Stocks: PepsiCo originally appeared on BloggingStocks on Sun, 07 Dec 2008 12:10:00 EST. Please see our terms for use of feeds.