Since reaching $71.78 in late May, shares of PepsiCo (NYSE:PEP) have seen a steady decline. They are now trading at $64.83, and last week the company posted lower-than-expected earnings and its outlook was weak.

But might there be an opportunity for investors to get a discount on a top blue-chip stock? Let’s take a look at the pros and cons:

Pros

Diversified portfolio. Pepsi has a broad range of products for beverages and snack foods, which are sold in more than 200 countries. The brands include Quaker Oats, Gatorade, Frito-Lay and Doritos. There are also strong regional brands like Walkers, Gamesa and Sabritas.

In fact, Pepsi has a sophisticated distribution system, which is called direct store delivery. It helps lower costs as well as adjust to changing customer demand.

Consumer savvy. Pepsi has incredibly effective marketing, and it has been at the forefront of social media, with campaigns on Twitter and Facebook.

Emerging markets. This is the key bright spot for Pepsi. Even with a general slowdown and higher inflation, most developing and emerging markets are posting healthy GDP growth. In the latest quarter, beverage volume growth increased 13% in China, 17% in India and 15% in Turkey.

PepsiCo also is using acquisitions to expand its footprint in emerging markets. To this end, the company acquired a majority interest in Wimm-Bill-Dann Dairy and Juice, one of the top food and beverage companies in Russia, for $3.8 billion.

Cons

Competitive pressures. In the U.S. market, Pepsi continues to show weakness in terms volume. The fact is that Coca-Cola (NYSE:KO) has been outsmarting Pepsi, but another factor has been the overall sluggish economy.

Macro issues. As with any consumer products company, Pepsi is facing higher inflation. It is getting increasingly expensive to purchase key ingredients In fact, it has been exaggerated because of the company’s acquisition of its bottling system.

Interestingly enough, inflation in emerging markets may pose a problem as well — it could reduce disposable income, which could lower demand for PepsiCo products.

Junk food problem. No doubt, much of what Pepsi makes would not be recommended by your doctor. However, with the rise of obesity around the world, there may be more bad publicity and maybe even governmental regulations.

Verdict

Pepsi has an enviable business, with tremendous brands. The financial position is also strong, with strong cash flows and a good dividend (at 3.1%)

Yet the company lost its focus, which has resulted in some problems with its growth, especially in the U.S. While it is working to turn things around, it will still take some time. I think a better option for investors is Coca-Cola, which continues to gain momentum.

In light of all these factors, the cons outweigh the pros for PepsiCo.

Tom Taulli’s latest book is “All About Short Selling” and he has an upcoming book called “All About Commodities.” You can find him at Twitter account @ttaulli. He does not own a position in any of the stocks named here.