Why PepsiCo Is Poised to Keep Poppin'

Brian D. Pacampara, The Motley Fool
Updated

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 has earned a respected four-star ranking.

With that in mind, let's take a closer look at PepsiCo and see what CAPS investors are saying about the stock right now.

PepsiCo facts

Headquarters (founded)

Purchase, N.Y. (1898)

Market Cap

$121.3 billion

Industry

Soft drinks

Trailing-12-Month Revenue

$65.5 billion

Management

Chairman/CEO Indra Nooyi

CFO Hugh Johnston

Return on Equity (average, past 3 years)

30.6%

Cash/Debt

$6.6 billion/$28.4 billion

Dividend Yield

2.8%

Competitors

Coca-Cola

Dr Pepper Snapple Group

Mondelez International


Sources: S&P Capital IQ and Motley Fool CAPS.

On CAPS, 97% of the 4,537 members who have rated PepsiCo believe the stock will outperform the S&P 500 going forward.

Earlier this month, one of those Fools, 42asdf, succinctly summed up the PepsiCo bull case for our community: "[R]easonable p/e, good growth, and reasonable profits. It does have a fair amount of debt, but with its good cash flow that should not be a problem. It has strong dividends."

There's no doubt that PepsiCo has quenched consumers' thirst for more than a century. But recently, the company has left shareholders craving more. With increased competition and loss of market share, many investors wonder if this global snack food and beverage giant is simply fizzling out. Are more bland results ahead for PepsiCo? In The Motley Fool's brand-new premium report, we guide you through everything you need to know about PepsiCo, including the key opportunities and threats facing the company's future. Simply click here now to claim your copy today.

Want to see how well (or not so well) the stocks in this series are performing? Follow the TrackPoisedTo CAPS account.

The article Why PepsiCo Is Poised to Keep Poppin' originally appeared on Fool.com.

Fool contributor Brian Pacampara has no position in any stocks mentioned. The Motley Fool recommends and owns shares of PepsiCo. It also recommends Coca-Cola. Try any of our Foolish newsletter services free for 30 days. We Fools may not all hold the same opinions, but we all believe that considering a diverse range of insights makes us better investors. The Motley Fool has a disclosure policy.

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