Seeking Alpha

More on PepsiCo (PEP): The company sees stable organic growth of 5% during Q4 with the snacks...

More on PepsiCo (PEP): The company sees stable organic growth of 5% during Q4 with the snacks business outperforming beverages and both price and volume contributing to the broad gains. For 2013, EPS is forecast to grow by 6% to $4.34-$4.35 vs. $4.40 consensus. PepsiCo boosts its buyback to $10B and ups its dividend payout rate to $2.27/share. PEP (PR)
From other sites
Comments (4)
  • J Mintzmyer
    , contributor
    Comments (3675) | Send Message
     
    Looking good, but the stock is already overpriced at a forward P/E of over 16.

     

    Not surprising with the yield at 3.1% that a lot of conservative portfolios are snapping this one up.

     

    It's definitely a stock I would recommend to a 50+ year old as part of a large diversified blue chip portfolio.
    14 Feb 2013, 07:58 AM Reply Like
  • Dividend Herder
    , contributor
    Comments (160) | Send Message
     
    I was interested in grabbing some more PEP myself but the P/E stopped me too. Much better deals available right now.
    14 Feb 2013, 08:43 AM Reply Like
  • supersaverguy
    , contributor
    Comments (72) | Send Message
     
    It's going to be harder to make it thru the day without Warren Buffet making money off you....
    14 Feb 2013, 12:07 PM Reply Like
  • wkbird
    , contributor
    Comments (44) | Send Message
     
    For a consumer defensive stock with the prowess of PepsiCo I don't see a 16 PE ratio being too much of a concern. Companies like PEP, PG, etc are going to trade at a premium PE to the overall market. During 2007 and 2008 PEP had a high PE range of 23-25. A 16 PE ratio actually doesn't come along that often on PEP. 2008-2011 it's low range was 12-15 PE.
    14 Feb 2013, 01:48 PM Reply Like
DJIA (DIA) S&P 500 (SPY)
ETF Tools
Find the right ETFs for your portfolio:
Seeking Alpha's new ETF Hub
ETF Investment Guide:
Table of Contents | One Page Summary
Read about different ETF Asset Classes:
ETF Selector