PepsiCo Inc Stock Buy Recommendation Reiterated (PEP)
- Despite its growing revenue, the company underperformed as compared with the industry average of 1.5%. Since the same quarter one year prior, revenues slightly increased by 1.2%. This growth in revenue does not appear to have trickled down to the company's bottom line, displayed by a decline in earnings per share.
- Net operating cash flow has significantly increased by 201.73% to $702.00 million when compared to the same quarter last year. In addition, PEPSICO INC has also vastly surpassed the industry average cash flow growth rate of 55.74%.
- The gross profit margin for PEPSICO INC is rather high; currently it is at 57.80%. It has increased from the same quarter the previous year. Despite the strong results of the gross profit margin, PEP's net profit margin of 8.54% significantly trails the industry average.
- Compared to where it was a year ago today, the stock is now trading at a higher level, regardless of the company's weak earnings results. Turning our attention to the future direction of the stock, it goes without saying that even the best stocks can fall in an overall down market. However, in any other environment, this stock still has good upside potential despite the fact that it has already risen in the past year.
--Written by a member of TheStreet Ratings Staff. Exclusive Offer: Jim Cramer's 'go-to' small/mid-cap guru Bryan Ashenberg only buys stocks he thinks could return 50-100%. See his top picks for 14-days FREE.
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