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

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 lower today making it today's featured Consumer Goods laggard. The sector as a whole was unchanged today. By the end of trading, PepsiCo fell $1.21 (-1.4%) to $82.59 on light volume. Throughout the day, 3,916,419 shares of PepsiCo exchanged hands as compared to its average daily volume of 5,342,700 shares. The stock ranged in price between $82.47-$83.84 after having opened the day at $83.79 as compared to the previous trading day's close of $83.80. Other companies within the Consumer Goods sector that declined today were: Kid Brands ( KID), down 8.1%, SkyPeople Fruit Juice ( SPU), down 5.8%, S&W Seed Company ( SANW), down 4.8% and Primo Water ( PRMW), down 4.7%.
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PepsiCo, Inc. operates as a food and beverage company worldwide. PepsiCo has a market cap of $129.5 billion and is part of the food & beverage industry. The company has a P/E ratio of 21.5, above the S&P 500 P/E ratio of 17.7. Shares are up 22.5% year to date as of the close of trading on Friday. Currently there are 10 analysts that rate PepsiCo a buy, no analysts rate it a sell, and 5 rate it a hold.

TheStreet Ratings rates PepsiCo as a buy. The company's strengths can be seen in multiple areas, such as its revenue growth, 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 positive front, Appliance Recycling Centers Of America ( ARCI), down 8.7%, STR Holdings ( STRI), down 7.9%, Meritor ( MTOR), down 7.3% and China New Borun Corporation ( BORN), down 7.1% , were all gainers within the consumer goods sector with Sony Corporation ( SNE) being today's featured consumer goods sector leader.

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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