PepsiCo Inc (PEP)

PEP (NYSE:Food & Beverage) EQUITY
$101.90
pos +0.81
+0.80%
Today's Range: 101.01 - 101.96 | PEP Avg Daily Volume: 4,723,600
Last Update: 05/26/16 - 4:00 PM EDT
Volume: 3,749,200
YTD Performance: 1.17%
Open: $101.20
Previous Close: $101.09
52 Week Range: $76.48 - $106.94
Oustanding Shares: 1,444,417,034
Market Cap: 146,016,117,967
6-Month Chart
TheStreet Ratings Grade for PEP
Buy Hold Sell
A+ A A- B+ B B- C+ C C- D+ D D- E+ E E- F
TheStreet Ratings is the source for accurate ratings that you can rely upon to make sound, informed financial decisions. Click here to find out about our methodology.
Analysts Ratings
Historical Rec Current 1 Mo. Ago 2 Mo. Ago 3 Mo. Ago
Strong Buy 10 10 10 11
Moderate Buy 2 2 2 2
Hold 4 4 4 3
Moderate Sell 0 0 0 0
Strong Sell 0 0 0 0
Mean Rec. 1.59 1.59 1.59 1.47
Latest Dividend: 0.75
Latest Dividend Yield: 2.98%
Dividend Ex-Date: 06/01/16
Price Earnings Ratio: 28.88
Price Earnings Comparisons:
PEP Sector Avg. S&P 500
28.88 28.90 12.90
Price Performance History (%Change):
3 Mo 1 Yr 3 Y
0.42% 5.02% 22.41%
GROWTH 12 Mo 3 Yr CAGR
Revenue -5.40 0.00 -0.01
Net Income -16.10 -0.10 -0.04
EPS -13.80 -0.10 -0.02
Earnings for PEP:
EBITDA 12.13B
Revenue 63.06B
Average Earnings Estimates
Qtr (06/16) Qtr (09/16) FY (12/16) FY (12/17)
Average Estimate $1.29 $1.35 $4.73 $5.14
Number of Analysts 10 8 11 13
High Estimate $1.33 $1.38 $4.80 $5.27
Low Estimate $1.23 $1.32 $4.66 $5.02
Prior Year $1.32 $1.35 $4.57 $4.73
Growth Rate (Year over Year) -2.42% -0.37% 3.46% 8.63%
Chart Benchmark
Average Frequency Timeframe
Indicator Chart Scale  
Symbol Comparison Bollinger Bands
The company can't raise prices, and its segment is saturated.
Hershey is one that stands to gain.

My Takeaways and Observations Real Money Pro($)

The U.S. dollar weakened modestly after two days of strengthening following the Fed's remarks. Crude oil fell by 40 cents to $48. Nat gas was flat. Gold was down $1.60, recovering from the day's lows. Agricultural commodities: wheat -4.75, corn +2.50, soybeans -14.25 and oats flat. Lumber -9.20. Bonds rallied in price. The yield on the 10-year U.S. note down by one basis point to  1.83% and the long bond down two basis points to 2.62%. Municipals were up small but closed-end muni bond funds rallied nicely from the recent carnage. High yield was flat. Banks flat-lined and I remain cautious. Deutsche Bank (DB) is under $17, again. A concern. Insurers were down large fractions. Brokerages were mixed. Retail was up and down, but nothing major. My three shorts are Starbucks (SBUX), up a dime, Nordstrom (JWN), up 20 cents, and Foot Locker (FL), down 55 cents. Old media and old tech did little. Energy was unchanged, though Schlumberger (SLB) caught a recommendation from the Buy Side. SLB was down 20 cents and Exxon Mobil (XOM) was up 20 cents. Autos continue to roll over. Ag equipment was strong, with Deere (DE) up 60 cents and Caterpillar (CAT) up 75 cents. Consumer nondurables were slightly better, despite my protestations! Biotech couldn't hold its morning gains, though iShares Nasdaq Biotechnology ETF (IBB) nonetheless was up $2.60. Allergan (AGN) and Valeant (VRX) -- the object of my recent disaffection -- were lower, off $4.10 and $1.10, respectively. My former speculative biotech package was up marginally.  (T)FANG was mixed, with Tesla (TSLA) down $3, Facebook (FB) down $1.10, Amazon (AMZN) down $3 and Netflix (NFLX) up $1.75. NOSH was weighed down by O'Reilly Automotive (ORLY), down $2. CRABBY was settled, with little price change on the day. In terms of individual stocks, Apple (AAPL) was up $1.60 (continuing its Berkshire-inspired rally from last week -- yawn!), POT was up 60 cents on the Monsanto (MON) takeover news, and Oaktree Capital Group (OAK) was down 50 cents. Here is some good stuff from Real Money Pro today: Jim "El Capitan" Cramer on McDonald's (MCD) and PepsiCo (PEP).  Tim "Not Judy or Phil" Collins chimes in on gold.  Bob Lang on "The Bear Market."  Rev Shark on something strange in the neighborhood (and it isn't ghosts).  Bret Jensen on two promising biopharmas.
U.S. companies with big overseas presence are getting hit.
Sky-High Price-to-Earnings Ratios. Wall Street might historically view consumer staples as "defensive," but many have offensive valuations these days. Those have stemmed from an extended low-interest-rate period (which is likely to end shortly), coupled with the incorrect perception that consumer staples' profits will be immune to the soft global-economic backdrop. Yields That Won't Provide Adequate Support. Consumer staples' dividend yields no longer provide the safety net that many investors believe. As we saw with Campbell's, a good dividend yield provides little protection when fundamentals sour -- as they likely will for many firms in the more-competitive global backdrop that I expect. Inflation is rising, and with that will inevitably come higher interest rates, meaning that the sector's current yields will provide little support. Emerging-Market Profit Pressures. Don't view Campbell's as an outlier. Generic competition, a potentially strengthening U.S. dollar and higher input costs due to rising commodities prices all represent continuing profit threats for the sector. P/E/G Rates are Elevated. P/E/G rates -- or stock valuations relative to the potential for reduced or pressured secular profit growth -- serve as another significant headwind for consumer staples. In fact, the sector's P/E ratios are obscene in certain cases relative to expected five-year growth rates, as this chart shows: Company                              P/E*               Div. Yield         5-year Expected EPS Gain Campbell                              27.1               2.08%           &nb
We offer 10 names each in the Opportunistic Value portfolio and the Income-Oriented portfolio.
Source: WikiCommons

My Takeaways and Observations Real Money Pro($)

Markets were oversold. The S&P 500 held the 50-day moving average. The put/call ratio popped back up.  From here, the key might be to watch what other asset classes rally with e
This quarter's performance has cemented their reputations.
Update
May 04, 2016 | 8:08 AM EDT
PEP - PepsiCo Inc Annual Shareholders Meeting - 9AM

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