This Day On The Street
Continue to site
ADVERTISEMENT
This account is pending registration confirmation. Please click on the link within the confirmation email previously sent you to complete registration.
Need a new registration confirmation email? Click here

Sodastream Could Be a Threat to 'Big Soda'

The company is expected to be able to grow its earnings by 25% per year over the next five years. This is the consensus analyst estimate. Sodastream has been growing earnings by 144% per year over the last five years.


It has been one of the fastest-growing companies from an earnings standpoint in the entire market. This is also one of the strongest growth stocks going forward in the market.

SODA is currently trading at 21.8 times forward earnings. This means SODA is still trading at a discount to its growth rate. It has a PEG ratio of 0.89.

When I take the current earnings of SODA, carry them at a 25% rate over the next five years and apply a multiple that I think is appropriate, I come up with a target price of $126. The company is currently trading at $70 dollars. Therefore, I think there is lots of upside potential.

I require three things in stocks before I buy them: Performance, value and a healthy stock chart. Let's next take a look at a one-year chart of the shares:

SODA passes my performance test. SODA passes my valuation test. SODA has a good, healthy stock chart. Now if we can just keep this market from rolling over!

Of the 3,384 stocks that I track on a daily basis, SODA comes in at number 61 and earns an overall grade of "A."

Data from Best Stocks Now App

At the time of publication aggressive-growth clients of Gunderson Capital Management are long the stock.

This article was written by an independent contributor, separate from TheStreet's regular news coverage.

2 of 2

Check Out Our Best Services for Investors

Action Alerts PLUS

Portfolio Manager Jim Cramer and Director of Research Jack Mohr reveal their investment tactics while giving advanced notice before every trade.

Product Features:
  • $2.5+ million portfolio
  • Large-cap and dividend focus
  • Intraday trade alerts from Cramer
Quant Ratings

Access the tool that DOMINATES the Russell 2000 and the S&P 500.

Product Features:
  • Buy, hold, or sell recommendations for over 4,300 stocks
  • Unlimited research reports on your favorite stocks
  • A custom stock screener
Stocks Under $10

David Peltier uncovers low dollar stocks with serious upside potential that are flying under Wall Street's radar.

Product Features:
  • Model portfolio
  • Stocks trading below $10
  • Intraday trade alerts
14-Days Free
Only $9.95
14-Days Free
To begin commenting right away, you can log in below using your Disqus, Facebook, Twitter, OpenID or Yahoo login credentials. Alternatively, you can post a comment as a "guest" just by entering an email address. Your use of the commenting tool is subject to multiple terms of service/use and privacy policies - see here for more details.
Submit an article to us!
SYM TRADE IT LAST %CHG
SODA $20.17 0.00%
AAPL $124.75 0.00%
FB $80.78 0.00%
GOOG $524.05 0.00%
TSLA $206.79 0.00%

Markets

DOW 17,826.30 -279.47 -1.54%
S&P 500 2,081.18 -23.81 -1.13%
NASDAQ 4,931.8150 -75.9760 -1.52%

Partners Compare Online Brokers

Free Reports

Top Rated Stocks Top Rated Funds Top Rated ETFs