5-Star Stocks Poised to Pop: PepsiCo
Based on the aggregated intelligence of 180,000-plus investors participating in Motley Fool CAPS, the Fool's free investing community, soft-drink and snack giant PepsiCo (NYS: PEP) has earned a coveted five-star ranking.
With that in mind, let's take a closer look at PepsiCo's business and see what CAPS investors are saying about the stock right now.
PepsiCo facts
Headquarters (Founded) | Purchase, N.Y. (1898) |
Market Cap | $100 billion |
Industry | Soft drinks |
Trailing-12-Month Revenue | $62.4 billion |
Management | Chairman/CEO Indra Nooyi |
Return on Equity (Average, Past 3 Years) | 32.6% |
Cash/Debt | $3.3 billion / $27.3 billion |
Dividend Yield | 3.3% |
Competitors | Coca-Cola (NYS: KO) |
Sources: Capital IQ (a division of Standard & Poor's) and Motley Fool CAPS.
On CAPS, 97% of the 4,265 members who have rated PepsiCo believe the stock will outperform the S&P 500 going forward. These bulls include troym72 and seekingyield.
Earlier this month, troym72 tapped PepsiCo as a tasty income opportunity:
Large growth company with 3% dividend yield. In the past as the market struggles, PEP tends to beat the market. The 3% dividend will keep it outperforming the market even if it goes neck and neck with the S&P.
Currently, PepsiCo even sports a cheapish price-to-cash flow of 12. That represents a discount to competitors like Coca-Cola (18), General Mills (16), and Kraft (18).
CAPS member seekingyield elaborates on the PepsiCo bull case:
PepsiCo is a very well diversified provider of goods that people consume today, and will continue to consume for the foreseeable future. The company has an ambitious growth objective for international markets and has demonstrated an ability to profitably extend itself into new markets in the past. The stock offers an attractive 3% yield and trades close to historical low multiples.
What do you think about PepsiCo, or any other stock for that matter? If you want to retire rich, you need to put together the best portfolio you can. Owning exceptional stocks is a surefire way to secure your financial future, and on Motley Fool CAPS, thousands of investors are working every day to find them. CAPS is 100% free, so get started!
Interested in another easy way to track PepsiCo?Add it to your watchlist.
At the time thisarticle was published Fool contributor Brian Pacampara owns no position in any of the companies mentioned. Motley Fool newsletter services have recommended buying shares PepsiCo and Coca-Cola and creating a diagonal call position in PepsiCo. The Fool owns shares of PepsiCo and Coca-Cola. Try any of our Foolish newsletter services free for 30 days.We Fools don't all hold the same opinions, but we all believe that considering a diverse range of insights makes us better investors. The Fool's disclosure policy always gets a perfect score.
Copyright © 1995 - 2011 The Motley Fool, LLC. All rights reserved. The Motley Fool has a disclosure policy.
