Along with being a growth, value, and income stock at various times, PepsiCo (NYSE: PEP) is now a momentum stocks!
PepsiCo is up for the last week, month, year, six months, and year of market action (chart below).
For 2014, PepsiCo has risen by almost 12 percent. By contrast, Coca-Cola (NYSE: KO) is down for the last week and month of trading. Analyst projections anticipate this trend continuing. For the next five years, earnings per share growth is projected to be 7.43 percent. That is up for the earnings-per-share growth rate of 6.10 percent for the last five years. With consumer spending increasing around the world, so should the sales for PepsiCo as its products are sold in virtually every country!
Combined with the dividend growth rate, that makes a PepsiCo very appealing for the future.
The dividend growth rate for PepsiCo for the last 5 years is over 13 percent, just about the same as Coca-Cola’s. At present, the dividend yield for PepsiCo is 2.86 percent. That is much higher than the average of around 1.8 percent for a member of the Standard & Poor’s 500 Index (NYSE: SPY). With its strong growth rate as a Dividend Aristocrat, the superiority of the PepsiCo dividend yield should increase over that a Standard & Poor’s 500 Index member company (both PepsiCo and Coca-Cola belong to the S&P 500).
PepsiCo is now trading around $90 a share.
Over the next year of market action, the Wall Street analyst community projects that it will hit $98.55. Combined with the dividend yield, that is over a 10 percent total return. What is also significant is that the short float for PepsiCo is under 1 percent, another very bullish sign. PepsiCo also has a very high level institutional ownership, another bullish sign.
All of those are very positive signs for a blue chip like PepsiCo, making it a very alluring stock for not only growth, value, and income investors, but now momentum investors, too!