Source of ticker: Through internet under the URL:
https://finance.yahoo.com/quote/PEP?p=PEP&.tsrc=fin-srch
Summary and Assessment of the PepsiCo. Inc.
PepsiCo. Inc. or PEP as the ticker symbol has a very good profile in the consumer
staples industry and good financial statements on its current growth and
profitability. The dividend yield for this PepsiCo. Inc. is really good at 2.98%
which is higher than many savings accounts in the U.S., and the company is rated at
fair value and the analyst recommendation is a buy. PepsiCo. Inc. does have a
multiple-step income statement and a typical balance sheet as shown in our book by
Gibson (2013) which shows that the net income is positive from quarter to quarter
starting from 6/16/2018 and from year to year starting on 2015. The good thing
about the income statement from year to year is that it has been increasing in gross
profit and with a large net income in 2018 of 12.5 billion. In addition, there are low
to no nonrecurring events in the income statement which is really good for a
company since it shows stability of the company in the marketplace and that there
are no extraordinary events that could cause a major fluctuation in the company’s
income and balance sheet.
In addition to the good financials, PepsiCo. Inc. has many consumer items that are
very popular not just in the U.S. but all over the world and have good credibility by
consumers. It is a common misconception that PepsiCo. Inc. is only for beverages
due to its name, but in actuality it has a high amount of snack and breakfast foods
that are very popular and have popularity and consistency in consumption all over
the world. The good thing about this stock is due to its good dividend yield, the
stockholder is receiving a good benefit to keep the stock for long-term and based on
its chart, the price stays consistent and is on an upward trend to increase in value.
In conclusion, PepsiCo. Inc. is a stable, consistent, profitable, and relatively good
growth stock that will have a good amount of yield per year and can lead to good
appreciation of your investment that is higher than inflation from year to year.
References
Gibson, C. H. (2013). Financial reporting & analysis: using financial accounting
information (13th ed.). Mason, OH: South-Western Cengage Learning.
