PepsiCo, Inc.Long
Buying Pepsico; Fitch just affirmed credit rating "A"
EPS FY 2019 = 5,228
EPS FY 2018 = 8,84
EPS FY 2008 = 3,26
EPS FY 2009 = 3,81
Pepsico; stable EPS over the last 20 year with a positive drift
PepsiCo was trading at an average P/E ratio of 12,5 between the announcement of FY 2018 and FY 2019 earning reports. High EPS of $8,84 in 2018 were the reason for a significatly low P/E ratio. The final earnings report 2019 brought EPS down to $5,28, leading to a rise of the P/E ratio towards 25. The stock price fell by 22% recently as a result of the COVID-Crisis, turning the P/E ratio to levels of 21-22. It is unlikely that FY 2020 reported EPS will beat FY 2019 EPS, therefore I’ll buy the stock at it’s historical average P/E ratio of 20 at 20*5,228 = $104.56, expecting that demand defensive dividend earning stocks will increase.
Invesment idea
Entry price $108
Take profit (or hold 😉) $129,6
Max expected holding period 6 months
Profit 20%
I`ll buy the stock as soon as it hits $108. The financial outlook of PEP remains stable because of a very stable FCF.
EPS FY 2018 = 8,84
EPS FY 2008 = 3,26
EPS FY 2009 = 3,81
Pepsico; stable EPS over the last 20 year with a positive drift
PepsiCo was trading at an average P/E ratio of 12,5 between the announcement of FY 2018 and FY 2019 earning reports. High EPS of $8,84 in 2018 were the reason for a significatly low P/E ratio. The final earnings report 2019 brought EPS down to $5,28, leading to a rise of the P/E ratio towards 25. The stock price fell by 22% recently as a result of the COVID-Crisis, turning the P/E ratio to levels of 21-22. It is unlikely that FY 2020 reported EPS will beat FY 2019 EPS, therefore I’ll buy the stock at it’s historical average P/E ratio of 20 at 20*5,228 = $104.56, expecting that demand defensive dividend earning stocks will increase.
Invesment idea
Entry price $108
Take profit (or hold 😉) $129,6
Max expected holding period 6 months
Profit 20%
I`ll buy the stock as soon as it hits $108. The financial outlook of PEP remains stable because of a very stable FCF.
Disclaimer
The information and publications are not meant to be, and do not constitute, financial, investment, trading, or other types of advice or recommendations supplied or endorsed by TradingView. Read more in the Terms of Use.
Disclaimer
The information and publications are not meant to be, and do not constitute, financial, investment, trading, or other types of advice or recommendations supplied or endorsed by TradingView. Read more in the Terms of Use.