Editor's Note: Any reference to TheStreet Ratings and its underlying recommendation does not reflect the opinion of TheStreet, Inc. or any of its contributors including Jim Cramer or Stephanie Link. Trade-Ideas LLC identified PepsiCo ( PEP) as an unusual social activity candidate. In addition to specific proprietary factors, Trade-Ideas identified PepsiCo as such a stock due to the following factors:
- PEP has 19x the normal benchmarked social activity for this time of the day compared to its average of 6.94 mentions/day.
- PEP has an average dollar-volume (as measured by average daily share volume multiplied by share price) of $492.2 million.
Identifying stocks with 'Unusual Social Activity' tends to be a valuable process for traders looking to capitalize on the 'talk of the town' stocks that are basking in far more attention from the StockTwits financial community than normal. Good press? Bad press? It ultimately doesn't matter if it's good or bad if you know how to trade around the sentiment. Certain hedge funds use such data for their proprietary algorithms and it is not uncommon to see shared social sentiment play itself out in a stock's price trend. EXCLUSIVE OFFER: Get the inside scoop on opportunities in PEP with the Ticky from Trade-Ideas. See the FREE profile for PEP NOW at Trade-Ideas More details on PEP: PepsiCo, Inc. operates as a food and beverage company worldwide. The stock currently has a dividend yield of 2.6%. PEP has a PE ratio of 22.2. Currently there are 11 analysts that rate PepsiCo a buy, no analysts rate it a sell, and 4 rate it a hold. The average volume for PepsiCo has been 4.9 million shares per day over the past 30 days. PepsiCo has a market cap of $133.6 billion and is part of the consumer goods sector and food & beverage industry. The stock has a beta of 0.30 and a short float of 0.9% with 2.49 days to cover. Shares are up 26.3% year to date as of the close of trading on Tuesday. STOCKS TO BUY: TheStreet Quant Ratings has identified a handful of stocks that can potentially TRIPLE in the next 12-months. Learn more. TheStreetRatings.com Analysis: TheStreet Quant Ratings rates PepsiCo as a buy. The company's strengths can be seen in multiple areas, such as its revenue growth, good cash flow from operations, expanding profit margins, solid stock price performance and reasonable valuation levels. We feel these strengths outweigh the fact that the company has had sub par growth in net income. Highlights from the ratings report include:
- PEP's revenue growth has slightly outpaced the industry average of 0.8%. Since the same quarter one year prior, revenues slightly increased by 1.2%. This growth in revenue does not appear to have trickled down to the company's bottom line, displayed by a decline in earnings per share.
- Net operating cash flow has significantly increased by 201.73% to $702.00 million when compared to the same quarter last year. In addition, PEPSICO INC has also vastly surpassed the industry average cash flow growth rate of 26.94%.
- The gross profit margin for PEPSICO INC is rather high; currently it is at 57.83%. It has increased from the same quarter the previous year. Regardless of the strong results of the gross profit margin, the net profit margin of 8.54% trails the industry average.
- Compared to where it was a year ago today, the stock is now trading at a higher level, regardless of the company's weak earnings results. Turning our attention to the future direction of the stock, it goes without saying that even the best stocks can fall in an overall down market. However, in any other environment, this stock still has good upside potential despite the fact that it has already risen in the past year.
- PEPSICO INC' earnings per share from the most recent quarter came in slightly below the year earlier quarter. The company has suffered a declining pattern of earnings per share over the past year. However, we anticipate this trend reversing over the coming year. During the past fiscal year, PEPSICO INC reported lower earnings of $3.92 versus $4.02 in the prior year. This year, the market expects an improvement in earnings ($4.40 versus $3.92).
- You can view the full PepsiCo Ratings Report.
STOCKS TO BUY: TheStreet Quant Ratings has identified a handful of stocks that can potentially TRIPLE in the next 12-months. Learn more.