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 closed the day down 1.0%. By the end of trading, PepsiCo fell $1.68 (-2.0%) to $80.89 on average volume. Throughout the day, 5,402,194 shares of PepsiCo exchanged hands as compared to its average daily volume of 5,026,900 shares. The stock ranged in price between $80.89-$82.67 after having opened the day at $82.32 as compared to the previous trading day's close of $82.57. Other companies within the Consumer Goods sector that declined today were: China Shengda Packaging Group ( CPGI), down 10.6%, Willamette Valley Vineyards ( WVVI), down 8.4%, Swisher Hygiene ( SWSH), down 6.7% and Pool ( POOL), down 5.8%.
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PepsiCo, Inc. operates as a food and beverage company worldwide. PepsiCo has a market cap of $127.7 billion and is part of the food & beverage industry. The company has a P/E ratio of 21.2, above the S&P 500 P/E ratio of 17.7. Shares are up 20.7% year to date as of the close of trading on Tuesday. Currently there are 11 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 positive front, Motorcar Parts of America ( MPAA), down 11.8%, Tufco Technologies ( TFCO), down 6.6%, Quantum Fuel Systems Technologies Worldwide ( QTWW), down 4.8% and Lifeway Foods ( LWAY), down 4.0%.

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).

STOCKS TO BUY: TheStreet Quant Ratings has identified a handful of stocks that can potentially TRIPLE in the next 12-months. Learn more.

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