Why PepsiCo Is Poised to Keep Poppin'

Market-trouncing returns could be written in this 4-Star.

Brian D. Pacampara, CFA
Brian D. Pacampara, CFA
Mar 25, 2013 at 6:00PM
Consumer Goods

Based on the aggregated intelligence of 180,000-plus investors participating in Motley Fool CAPS, the Fool's free investing community, soft-drink and snack giant PepsiCo (NASDAQ:PEP) has earned a respected four-star ranking.

With that in mind, let's take a closer look at PepsiCo and see what CAPS investors are saying about the stock right now.

PepsiCo facts



Headquarters (founded)

Purchase, N.Y. (1898)

Market Cap

$121.3 billion


Soft drinks

Trailing-12-Month Revenue

$65.5 billion


Chairman/CEO Indra Nooyi

CFO Hugh Johnston

Return on Equity (average, past 3 years)



$6.6 billion/$28.4 billion

Dividend Yield



Coca-Cola (NYSE: KO)

Dr Pepper Snapple Group (NYSE: DPS)

Mondelez International (NASDAQ: MDLZ)

Sources: S&P Capital IQ and Motley Fool CAPS.

On CAPS, 97% of the 4,537 members who have rated PepsiCo believe the stock will outperform the S&P 500 going forward.

Earlier this month, one of those Fools, 42asdf, succinctly summed up the PepsiCo bull case for our community: "[R]easonable p/e, good growth, and reasonable profits. It does have a fair amount of debt, but with its good cash flow that should not be a problem. It has strong dividends."

Want to see how well (or not so well) the stocks in this series are performing? Follow the TrackPoisedTo CAPS account.