PepsiCo Inc (PEP): Today's Featured Consumer Goods Winner

Editor's Note: TheStreet ratings do not represent the views of TheStreet's staff or its contributors. Ratings are established by computer based on metrics for performance (which includes growth, stock performance, efficiency and valuation) and risk (volatility and solvency). Companies with poor cash flow or high debt levels tend to earn lower ratings in our model.

PepsiCo ( PEP) pushed the Consumer Goods sector higher today making it today's featured consumer goods winner. The sector as a whole closed the day up 1%. By the end of trading, PepsiCo rose 88 cents (1.3%) to $70.19 on light volume. Throughout the day, 3.4 million shares of PepsiCo exchanged hands as compared to its average daily volume of 5.3 million shares. The stock ranged in a price between $69.50-$70.36 after having opened the day at $69.54 as compared to the previous trading day's close of $69.31. Other companies within the Consumer Goods sector that increased today were: National Beverage Corporation ( FIZZ), up 14.7%, Star Scientific ( STSI), up 13.6%, Quantum Fuel Systems Technologies Worldwide ( QTWW), up 10.6%, and Alliance One International ( AOI), up 9.7%.
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PepsiCo, Inc. engages in the manufacture and sale of snacks, carbonated and non-carbonated beverages, dairy products, and other foods worldwide. PepsiCo has a market cap of $107.21 billion and is part of the food & beverage industry. The company has a P/E ratio of 18.5, above the S&P 500 P/E ratio of 17.7. Shares are up 4.5% year to date as of the close of trading on Wednesday. Currently there are 11 analysts that rate PepsiCo a buy, no analysts rate it a sell, and four rate it a hold.

TheStreet Ratings rates PepsiCo as a buy. The company's strengths can be seen in multiple areas, such as its notable return on equity, reasonable valuation levels, good cash flow from operations, expanding profit margins and increase in stock price during the past year. We feel these strengths outweigh the fact that the company has had sub par growth in net income.

For investors not wanting singular stock exposure, ETFs may be of interest. Investors who are bullish on the consumer goods sector could consider iShares Dow Jones US Cons Goods ( IYK) while those bearish on the consumer goods sector could consider ProShares Ultra Sht Consumer Goods ( SZK).

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