PepsiCo Inc (PEP): Today's Featured Food & Beverage 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 Food & Beverage industry higher today making it today's featured food & beverage winner. The industry as a whole closed the day up 1.4%. By the end of trading, PepsiCo rose 78 cents (1.1%) to $72.28 on heavy volume. Throughout the day, 8.1 million shares of PepsiCo exchanged hands as compared to its average daily volume of 5.2 million shares. The stock ranged in a price between $71.50-$73.20 after having opened the day at $72.12 as compared to the previous trading day's close of $71.50. Other companies within the Food & Beverage industry that increased today were: Constellation Brands ( STZ), up 37.2%, Constellation Brands ( STZ.B), up 36%, HJ Heinz Company ( HNZ), up 19.9%, and S&W Seed Company ( SANW), up 12.6%.
  • EXCLUSIVE OFFER: Jim Cramer's Protégé, Dave Peltier, only buys Stocks Under $10 that he thinks could potentially double. See what he's trading today with a 14-day FREE pass.

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 $111.64 billion and is part of the consumer goods sector. The company has a P/E ratio of 19.2, above the S&P 500 P/E ratio of 17.7. Shares are up 5.5% 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.

On the negative front, Central European Distribution ( CEDC), down 9%, Overhill Farms ( OFI), down 7.7%, Mondelez International ( MDLZ), down 4.3%, and Castle Brands Incorporated ( ROX), down 3.6%, were all laggards within the food & beverage industry with Molson Coors Brewing Company ( TAP) being today's food & beverage industry laggard.

For investors not wanting singular stock exposure, ETFs may be of interest. Investors who are bullish on the food & beverage industry could consider PowerShares Dynamic Food & Beverage ( PBJ) while those bearish on the food & beverage industry could consider PowerShares DB Agriculture Sht ETN ( ADZ).

It's Official: Action Alerts PLUS beats the S&P 500 with Dividends Reinvested! Cramer and Link were up 16.72% in 2012. Were you? See what they are trading for 14-days FREE.
null

If you liked this article you might like

Natural Alternatives to Sports Drinks - Buying Guide

Uber's New Brand Chief Says the iPhone X Costs Too Much Money

Uber's New Brand Chief: Why I Took the Job and What I'm Going to Do Now

Coca-Cola Is Inching Closer to Monster Beverage Takeover

Hurricane Irma Sends People Panicking to Buy Bottled Water