PepsiCo's (PEP) mixed second quarter earnings have left investors underwhelmed, with results showing a decline in some of the company's snack segments. RBC Capital Markets managing director Nik Modi joins Market Domination to discuss his outlook on the snacking industry.

Modi notes PepsiCo's status as "a high-quality company," while acknowledging that the top line was the primary concern in this earnings report. He says PepsiCo's challenges stem from broader economic trends, noting that consumers are increasingly feeling the pinch of economic pressures. "This is not just a PepsiCo problem, this is a problem for the entire snacking industry," Modi emphasizes.

However, Modi highlights alcohol company Constellation Brands (STZ) as a top pick: "This company has been able to deliver exactly what they said in their beer business going back the last ten years." Constellation Brands' stock is up by over 3.5% since posting mixed fiscal first-quarter results last week.

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This post was written by Angel Smith