Sunday, April 17, 2011

Stock Idea: PepsiCo (PEP, $67.11)

(May 16, 2011 update: All future stock posts will appear on my new subscription-only website at Please visit!)

PepsiCo. Inc. (PEP) is a global food, snack and beverage company.

Projected consensus EPS growth is 8.5%, 9.4% and 9.6% for fiscal years 2011 through 2013. The PE is 15, and the dividend yield is 2.86%.

Standard & Poor's tell us, "PEP said it plans to repurchase about $2.5 billion of stock in 2011 after repurchasing $5 billion in 2010." PEP is on Morgan Stanley's Best Ideas List with a price target of $82.

PEP stock is still recovering steadily from the 2008 financial meltdown. The stock has been trading in the $60-$67 area for well over a year. It could bounce around a little in the $65-$67 area before moving toward $72, then establish a new trading range around $67-$72.

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The Right Huff is Crista Huff's blog for politics and items of sociological or financial interest. Crista Huff also managesGoodfellow LLC, a subscription-only stock market website. We strive to identify financially healthy companies in which traders and investors can buy shares and earn dividends and capital gains. Seedisclaimer for the risks associated with investing in the stock market. See your tax advisor for the tax consequences of investing. See your estate planning attorney to clarify beneficiary and inheritance issues associated with your assets.

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