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PepsiCo Inc. PEP is making waves in the stock market as its shares recently formed a bullish technical pattern known as a Golden Cross.
PepsiCo is one of the world's largest beverage and food makers. The company's dividend yield is around 2.9% today.
PepsiCo (PEP) closed at $178.52 in the latest trading session, marking a +0.55% move from the prior day.
Given its better valuation, we believe PepsiCo stock (NYSE: PEP) is a better pick than its peer, Coca-Cola stock (NYSE: KO). PEP stock trades at 21x forward earnings, versus 25x for KO.
Coca-Cola and rival PepsiCo spent hundreds of millions of dollars over decades building demand for their soft drinks in Muslim-majority countries including Egypt to Pakistan.
The recommendations of Wall Street analysts are often relied on by investors when deciding whether to buy, sell, or hold a stock. Media reports about these brokerage-firm-employed (or sell-side) analysts changing their ratings often affect a stock's price.
Keurig Dr Pepper is a leading North American beverage company, competing with the likes of Coca-Cola and Pepsi. KDP's improving market position is evident, with Dr Pepper considered the second-largest soft drink brand in the US. KDP's profitability supports its cash flow generation, enabling noticeable dividends and share repurchases with a reasonable payout ratio.
High demand for growth and technology stocks has left value stocks like PepsiCo behind. PepsiCo's fundamentals are better than the stock's recent price action would indicate.
PepsiCo stays on the radar as slowing North America sales cast a shadow on its near-term growth prospects. Investors look skeptical about its sparse growth.
In the closing of the recent trading day, PepsiCo (PEP) stood at $175.97, denoting a +0.06% change from the preceding trading day.
PepsiCo is a diversified blue-chip company with over 500 brands operating globally, with 23 of those brands pulling more than $1 billion in revenue each. Trades at a discount compared to its historical value and peers at just 21.0x earnings. Offers 3.1% dividend yield, and focuses on efficiency and growth with global capex spend.