Pepsico's most recent trend suggests a bearish bias. One trading opportunity on Pepsico is a Bear Call Spread using a strike $138.00 short call and a strike $143.00 long call offers a potential 17.92% return on risk over the next 3 calendar days. Maximum profit would be generated if the Bear Call Spread were to expire worthless, which would occur if the stock were below $138.00 by expiration. The full premium credit of $0.76 would be kept by the premium seller. The risk of $4.24 would be incurred if the stock rose above the $143.00 long call strike price.
The 5-day moving average is moving down which suggests that the short-term momentum for Pepsico is bearish and the probability of a decline in share price is higher if the stock starts trending.
The 20-day moving average is moving down which suggests that the medium-term momentum for Pepsico is bearish.
The RSI indicator is at 67.9 level which suggests that the stock is neither overbought nor oversold at this time.
To learn how to execute such a strategy while accounting for risk and reward in the context of smart portfolio management, and see how to trade live with a successful professional trader, view more here
LATEST NEWS for Pepsico
PepsiCo Accelerates Plastic Waste Reduction Efforts
Fri, 13 Sep 2019 13:20:00 +0000
PURCHASE, N.Y., Sept. 13, 2019 /PRNewswire/ — PepsiCo, Inc. (PEP) today announced a new target to reduce 35% of virgin plastic content across its beverage portfolio by 2025, which equates to the elimination of 2.5 million metric tons of cumulative virgin plastic. Progress will be driven by the company's increased use of recycled content and alternative packaging materials for its beverage brands, including LIFEWTR®, bubly™ and Aquafina®, which recently announced sustainable packaging efforts. Additionally, through the expansion of PepsiCo's SodaStream® business, an estimated 67 billion plastic bottles will be avoided through 2025.
Why You Should Buy Pepsi Instead of Coca-Cola Stock
Thu, 12 Sep 2019 18:27:29 +0000
Coca-Cola (NYSE:KO) stock is more expensive than PepsiCo (NASDAQ:PEP) in most value metrics for the two companies' valuations in relation to their sales, earnings and cash flow.Source: Elvan / Shutterstock.com For example, KO trades at 24 times its forward price-to-earnings ratio. It also is valued at 25.1 times enterprise value to EBITDA. By contrast, PEP trades at 23 times earnings and has an EV-to-EBITDA ratio of 17.1.Another example is that the market values KO stock's enterprise value at 8.2 times its sales, whereas PEP is at 3.4 times EV-to-sales.InvestorPlace – Stock Market News, Stock Advice & Trading Tips Differences with Dividends and YieldsKO stock has a slightly higher dividend yield than PEP. Coca-Cola stock yields 2.9% and PepsiCo's yield is 2.8%.However, KO spends more of its earnings on dividends, paying out 77.4%. PEP pays out only 68.4 % of its earnings-per-share in dividends.If PEP paid out 77.4% in dividends like KO, its dividend per share would be 13.1% higher — $4.32 annually. So at today's price of ~$136.36, PEP's dividend yield would be higher than KO's — 3.17% vs. KO stock's 2.94%.Moreover, KO has grown its dividends at only 6.85% during the past five years. PepsiCo dividends have grown faster at 9.88% over the same period. And remember PEP pays out less of its earnings, so its growth rate would be even higher on a comparable payout basis. * 10 Big IPO Stocks From 2019 to Watch PEP's Total Return Has Been Better Than KO, Despite Being CheaperNormally you would think that since KO stock is more expensive than PEP its stock performance would have been better than PEP's. But over the past year, KO stock has risen 19% and PEP has risen 20%. So PEP has outperformed Coca-Cola by 5.37%.Even more interesting is that PEP's total return has also been better. Remember that KO has a higher dividend yield than PEP — 2.94% (KO) vs. 2.81% (PEP). If you add in the actual dividends declared over the past year, KO has paid out $1.59 per share in dividends. One year ago KO's price was $46.02, so the dividends paid earned investors 3.46%.PEP declared $3.765 per share in dividends over the past year. Based on the year-ago price of $113.85, these dividends earned investors 3.31%.On a total return basis, Coca-Cola stock earned investors 22.46% (19 % price appreciation plus 3.46% in dividends). But PEP earned their investors 23.34% (20.03 % plus 3.31%).So, even though PEP is cheaper than KO stock and has a lower dividend yield, investors in PepsiCo would have made 3.89% more on their investment than those in Coca-Cola stock, including dividends. Why Has PEP Outperformed KO Stock?The answer here is mixed. In Q2, Coca-Cola grew its EPS 12% over the past year in Q2. PepsiCo's EPS grew 13%.But both companies also measure their earnings on an "organic" basis, which strips out currency effects and other non-comparable distortions. KO's organic EPS was up 6% but PEP had 0% growth.The measure I like to look at is free cash flow (FCF). This is a measure of actual cash flow returns. Based on my analysis, Coca-Cola had an amazing 46.5% increase over the past year. PepsiCo's FCF grew a respectable 35.7%.But even that measure is not a perfect comparison. For example, PEP spent a much larger amount of money on capital expenditures, in both dollar volume and as a percent of sales, than Coca-Cola — effectively investing for future performance. If the two capex numbers are put on a comparable basis, PepsiCo's FCF growth would be as good as Coca-Cola's.So by some measures, Coca-Cola performed better than PepsiCo, and in others, PepsiCo outperformed. There is no clear winner here.Maybe the difference between the two companies is how they see the future. Future Guidance for the Companies Is Very SimilarKO indicated that its EPS is likely to be -1% to +1% higher in 2019 over 2018. PepsiCo has guided to a 1% lower EPS number for 2019.These are not big differences. * 7 Discount Retail Stocks to Buy for a Recession In fact, the only real difference I can see between the companies is that that PEP's stock is significantly cheaper than KO's stock valuation. I pointed this out at the beginning of this article. SummaryPEP's stock is cheaper and outperformed KO stock. There is not much difference in their financial performance.I suspect PEP is therefore likely to perform better than KO stock on a total return basis over the next year.As of this writing, Mark Hake, CFA does not hold a position in any of the aforementioned securities. Mark Hake runs the Total Yield Value Guide which you can review here. The Guide focuses on high total yield value stocks and was launched on August 30. Subscribers during September receive a 20% discount, plus a two-week free trial. More From InvestorPlace * 2 Toxic Pot Stocks You Should Avoid * 10 Battered Tech Stocks to Buy Now * 7 Strong-Buy Stocks Hedge Funds Are Buying Now * The 7 Best Penny Stocks to Buy The post Why You Should Buy Pepsi Instead of Coca-Cola Stock appeared first on InvestorPlace.
Buy, Scan, Cash In: PepsiCo Launches Cash Back Loyalty Program with PayPal and Venmo
Thu, 12 Sep 2019 13:00:00 +0000
PURCHASE, N.Y., Sept 12, 2019 /PRNewswire/ — Mountain Dew® and Doritos® are purchased together nearly as much as peanut butter and jelly. Now, having the good taste to pair those two pays off thanks to PepsiCo's first-ever cash-back loyalty program—PepCoin by PepsiCo, a digital program that's perfect for the on-the-go consumer.
Canopy Growth Stock Needs to Be One of Your Main Cannabis Plays
Thu, 12 Sep 2019 12:40:47 +0000
Canopy Growth (NYSE:CGC) has bounced back by 16.3% so far in September after a brutal sell-off over the past few months. I recommended Canopy Growth stock back on Au. 30. I felt the stock had been oversold given how little its fundamental picture has changed.Source: Shutterstock A brand new report on Canadian cannabis market share seems to confirm the idea that Canopy is dominating the nascent Canadian market. Experienced investors know a first-mover advantage is extremely valuable in the long-term.One of the biggest reasons why CGC stock has dropped in the past few months is because its losses have been heavier than expected. However, the early market share numbers suggest Canopy's strategy of aggressively investing in ramping up its business is already paying off.InvestorPlace – Stock Market News, Stock Advice & Trading Tips The NumbersBank of America found Canopy has a 25% market share of all cannabis listings in Canada. The study included 1,980 listings, 101 brands and 39 different cannabis producers. * 10 Stocks to Sell in Market-Cursed September Canopy Growth Corp has the largest share of the Canadian market by a long shot. Analyst Christopher Carey says Canopy's market share is roughly double the 13% market share of its closest competitors, Aurora Cannabis (NYSE:ACB) and Organigram (NASDAQ:OGI).Carey says establishing that first-mover advantage is critical."Establishing distribution – early and big – can be significant in creating long-term market share moats for a business competing in new consumer categories prone to fragmentation," he said.Unfortunately, the market share study wasn't all good news for Canopy Growth stock. The 25% "share of listings" represents product already on shelves throughout Canada. Bank of America also looked at "sell-in," or total retail purchases of cannabis. Sell-in represents the future share of listings. In that statistic, Canopy has dropped to second place with 22%, trailing Aurora at 27%. The Future of CannabisCarey says investors shouldn't get too worried about Canopy losing sell-in share. In the June quarter, Canopy's harvest jumped 183% quarter-over-quarter, much of which was hot-selling THC flower.Carey is expecting this spike in harvest will translate to a 33% quarterly increase in Canopy sell-in in the fiscal second quarter of 2020. That big push could push Canopy back ahead of Aurora in sell-in share.Obviously having that top market share spot is ideal, but as long as Canopy remains at or near the top, investors should be rewarded in time. Certainly, investors want Canopy Growth to be the Coca-Cola (NYSE: KO) of cannabis, but it will be just fine if Canopy Growth stock ends up the PepsiCo (NASDAQ: PEP) of Canadian cannabis.In fact, PEP stock has generated a total return of more than 2,630% over the past 30 years. KO stock has a total return of 2,570% in that time. How to Play Canopy Growth StockThe latest Canadian market share numbers were certainly good enough to keep Carey in the bull camp when it comes to CGC stock."Canopy remains a company, if a still imperfect story, with a chance at becoming a leading global player in cannabis, especially given its industry leading [balance] sheet and partnership," he said.Bank of America has a "buy" rating and $27.66 price target for Canopy Growth stock.If you are a cannabis investor that believes the industry is just getting started, I think you can't go wrong owning Canopy Growth stock. My only recommendation would be to hedge your bets by owning ACB stock and at least two or three other cannabis stocks as well.As much as you love Canopy Growth stock and think Canopy will end up as the Coke or Pepsi of cannabis, it is still extremely early in the cannabis game. Especially in the event of U.S. legalization, there will be plenty of demand to support multiple market winners.It's likely most of the smaller names can't beat out Canopy Growth Corp and Aurora directly. But they might make appealing buyout targets down the line.I would recommend all cannabis investors buy Canopy Growth stock, ACB stock and at least two more of their favorite cannabis plays for a more diversified approach to the market.As of this writing, Wayne Duggan did not hold a position in any of the aforementioned securities. More From InvestorPlace * 2 Toxic Pot Stocks You Should Avoid * 10 Stocks to Sell in Market-Cursed September * 7 of the Worst IPO Stocks in 2019 * 7 Best Stocks That Crushed It This Earnings Season The post Canopy Growth Stock Needs to Be One of Your Main Cannabis Plays appeared first on InvestorPlace.
NACFE Announces 10 Drivers Participating In Its Run On Less Regional Challenge
Wed, 11 Sep 2019 12:53:57 +0000
NACFE will announced the initial results of the run at the North American Commercial Vehicle Show on Oct. 28 in Atlanta. “We will also graph out some of the really important information from running regional [routes] — things like vehicle speed, so if the truck operates on the freeway for a long point in time, or did it have a lot of starts and stops where the vehicle speed was much lower,” that will all be recorded.
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