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 1.1%. By the end of trading, PepsiCo rose $0.85 (1.0%) to $82.51 on average volume. Throughout the day, 6,346,167 shares of PepsiCo exchanged hands as compared to its average daily volume of 5,118,600 shares. The stock ranged in a price between $81.49-$82.51 after having opened the day at $81.98 as compared to the previous trading day's close of $81.66. Other companies within the Food & Beverage industry that increased today were: Pilgrims Pride ( PPC), up 22.0%, Boulder Brands ( BDBD), up 13.6%, American Lorain ( ALN), up 7.8% and Tofutti Brands ( TOF), up 6.6%.
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PepsiCo, Inc. operates as a food and beverage company worldwide. PepsiCo has a market cap of $125.6 billion and is part of the consumer goods sector. The company has a P/E ratio of 20.9, above the S&P 500 P/E ratio of 17.7. Shares are up 19.3% year to date as of the close of trading on Thursday. 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, expanding profit margins, good cash flow from operations 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, Seneca Foods ( SENEB), down 5.7%, Key Technology ( KTEC), down 3.7%, China Marine Food Group ( CMFO), down 2.2% and MGP Ingredients ( MGPI), down 2.2%.

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).

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