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 a new lifetime high candidate. In addition to specific proprietary factors, Trade-Ideas identified PepsiCo as such a stock due to the following factors:
- PEP has an average dollar-volume (as measured by average daily share volume multiplied by share price) of $342.9 million.
- PEP has traded 1.5 million shares today.
- PEP is trading at a new lifetime high.
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. Its Frito-Lay North America segment offers Lay's and Ruffles potato chips, Doritos and Tostitos tortilla chips, Cheetos cheese flavored snacks, dips, Fritos corn chips, and Santitas tortilla chips. The stock currently has a dividend yield of 3%. PEP has a PE ratio of 19.8. Currently there are 10 analysts that rate PepsiCo a buy, no analysts rate it a sell, and 6 rate it a hold. The average volume for PepsiCo has been 4.4 million shares per day over the past 30 days. PepsiCo has a market cap of $132.3 billion and is part of the consumer goods sector and food & beverage industry. The stock has a beta of 0.33 and a short float of 0.6% with 2.45 days to cover. Shares are up 7.2% year-to-date as of the close of trading on Wednesday. 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 growth in earnings per share, increase in net income, revenue growth, notable return on equity and expanding profit margins. We feel these strengths outweigh the fact that the company has had generally high debt management risk by most measures that we evaluated. Highlights from the ratings report include:
- PEPSICO INC has improved earnings per share by 14.5% in the most recent quarter compared to the same quarter a year ago. The company has demonstrated a pattern of positive earnings per share growth over the past two years. We feel that this trend should continue. During the past fiscal year, PEPSICO INC increased its bottom line by earning $4.32 versus $3.92 in the prior year. This year, the market expects an improvement in earnings ($4.54 versus $4.32).
- The net income growth from the same quarter one year ago has significantly exceeded that of the Beverages industry average, but is less than that of the S&P 500. The net income increased by 13.1% when compared to the same quarter one year prior, going from $1,075.00 million to $1,216.00 million.
- Despite its growing revenue, the company underperformed as compared with the industry average of 2.6%. Since the same quarter one year prior, revenues slightly increased by 0.3%. This growth in revenue appears to have trickled down to the company's bottom line, improving the earnings per share.
- The return on equity has improved slightly when compared to the same quarter one year prior. This can be construed as a modest strength in the organization. Compared to other companies in the Beverages industry and the overall market, PEPSICO INC's return on equity significantly exceeds that of both the industry average and the S&P 500.
- The gross profit margin for PEPSICO INC is rather high; currently it is at 58.52%. 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 9.63% trails the industry average.
- 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.