The Zacks Analyst Blog Highlights: Booz Allen Hamilton Holding, SodaStream International, PepsiCo, Coca-Cola and Dr Pepper Snapple Group

Zacks

For Immediate Release

Chicago, IL – June 12, 2013 – Zacks.com announces the list of stocks featured in the Analyst Blog. Every day the Zacks Equity Research analysts discuss the latest news and events impacting stocks and the financial markets. Stocks recently featured in the blog include Booz Allen Hamilton Holding Corp. (BAH-Free Report), SodaStream International Ltd. (SODA-Free Report), PepsiCo, Inc. (PEP-Free Report), The Coca-Cola Company (KO-Free Report) and Dr Pepper Snapple Group Inc. (DPS-Free Report).

Today, Zacks is promoting its ''Buy'' stock recommendations. Get #1Stock of the Day pick for free.

Here are highlights from Tuesday’s Analyst Blog:

Booz Allen Shares Slip on PRISM Leak

Virginia-based management and technology consulting services provider, Booz Allen Hamilton Holding Corp.’s (BAH-Free Report) shares slumped 2.6% after news one of its employees revealed classified information related to a National Security Agency (:NSA) electronic surveillance program (called PRISM).

The 29-year-old Edward Snowden responsible for the leak was once associated with the U.S. Central Intelligence Agency (
CIA). He broke the story to the U.K-based daily The Guardian and admitted that some secret information regarding the NSA’s PRISM program had been given out as a news byte to a section of the media. (Snowden has previously spent four years working with several contractors of the NSA.)

The NSA, one of the secret agencies of the U.S. Department of Defense, is responsible for the collection and analysis of foreign communications and foreign signals intelligence, as well as protecting the U.S. government’s communications and information systems.

Booz Allen, which has been Snowden’s employer for just about three months, may be significantly impacted by the outcome of the probe. Being one of the biggest contenders for government contracts (roughly 99.0% of its revenues), it could be hard for Booz Allen to escape responsibility for inadequate safety measures.

Booz Allen’s close association with the federal agencies is mainly due to its mission critical services that are helpful for combating global terrorism, improving cyber capabilities, transforming the healthcare system, improving efficiency and managing change within the government, and protecting the environment.

Booz Allen reported a solid fourth quarter 2013 with earnings of 39 cents topping the Zacks Consensus Estimate by 11.4%. Though year-over-year revenue growth was negligible, Booz Allen recorded a total backlog of $11.83 billion.

We think that the Snowden issue and tight spending by federal agencies can jeopardize its position. If this issue is resolved, however, the solid backlog, deal pipeline, planned acquisitions and strategic investments in core business areas could result in a good year for the company.

SodaStream Hits 52-Week High

Shares of SodaStream International Ltd.’s (SODA-Free Report) jumped to a 52-week high of $77.80 on Monday, Jun 11, on market rumors of its acquisition by snack and beverage giant PepsiCo, Inc. (PEP-Free Report).

The closing price of the Israeli home soda-machine maker on Jun 10 was $76.11, representing a huge 1-year return of about 119.5%. Average volume of shares traded over the last three months stands at approximately 1541K.

Last week, an Israeli newspaper reported that PepsiCo was considering buying SodaStream. It is rumored that the purchase price was a whopping $2 billion. PepsiCo has however, denied the media reports to Reuters.

SodaStream commands a global leadership position in the home beverage carbonation market. Its soda-making systems offer a healthier and a convenient way to enjoy flavored carbonated sodas at home than the traditional soft drinks sold by PepsiCo and rivals The Coca-Cola Company (KO-Free Report) and Dr Pepper Snapple Group Inc. (DPS-Free Report).

We believe that SodaStream would make a strategic buy for PepsiCo. PepsiCo could benefit from solid demand for SodaStream’s products in the U.S., its expanding strategic partnerships, enhanced marketing activities, regular product innovations, accretive acquisitions and successful strategic investments. These attributes have helped SodaStream deliver solid profits over the past few quarters. In fact, the company has enjoyed tremendous sales growth and expanded retail presence in the U.S. in sharp contrast to sluggish soft drinks sales witnessed by the beverage giants.

The deal will also go in sync with PepsiCo’s increasing efforts to make low calorie beverages, non-carbonated beverages and healthier snacks to reap benefits from shifting consumer preference for good-for-you and health and wellness products. Many analysts however, believe that a joint venture between PepsiCo and SodaStream was a more likely option.

Both SodaStream and PepsiCo carry a Zacks Rank #2 (Buy).

Today, Zacks is promoting its ''Buy'' stock recommendations. Get #1Stock of the Day pick for free.

About Zacks Equity Research

Zacks Equity Research provides the best of quantitative and qualitative analysis to help investors know what stocks to buy and which to sell for the long-term.

Continuous coverage is provided for a universe of 1,150 publicly traded stocks. Our analysts are organized by industry which gives them keen insights to developments that affect company profits and stock performance. Recommendations and target prices are six-month time horizons.

Zacks "Profit from the Pros" e-mail newsletter provides highlights of the latest analysis from Zacks Equity Research. Subscribe to this free newsletter today.

About Zacks

Zacks.com is a property of Zacks Investment Research, Inc., which was formed in 1978. The later formation of the Zacks Rank, a proprietary stock picking system; continues to outperform the market by nearly a 3 to 1 margin. The best way to unlock the profitable stock recommendations and market insights of Zacks Investment Research is through our free daily email newsletter; Profit from the Pros.  In short, it's your steady flow of Profitable ideas GUARANTEED to be worth your time! Register for your free subscription to Profit from the Pros.

Get the full Report on BAH - FREE

Get the full Report on SODA - FREE

Get the full Report on PEP - FREE

Get the full Report on KO - FREE

Get the full Report on DPS - FREE

Follow us on Twitter: http://twitter.com/zacksresearch

Join us on Facebook: http://www.facebook.com/home.php#/pages/Zacks-Investment-Research/57553657748?ref=ts

Zacks Investment Research is under common control with affiliated entities (including a broker-dealer and an investment adviser), which may engage in transactions involving the foregoing securities for the clients of such affiliates.

Media Contact
Zacks Investment Research

800-767-3771 ext. 9339

support@zacks.com

http://www.zacks.com

Past performance is no guarantee of future results. Inherent in any investment is the potential for loss. This material is being provided for informational purposes only and nothing herein constitutes investment, legal, accounting or tax advice, or a recommendation to buy, sell or hold a security. No recommendation or advice is being given as to whether any investment is suitable for a particular investor. It should not be assumed that any investments in securities, companies, sectors or markets identified and described were or will be profitable. All information is current as of the date of herein and is subject to change without notice. Any views or opinions expressed may not reflect those of the firm as a whole. Zacks Investment Research does not engage in investment banking, market making or asset management activities of any securities. These returns are from hypothetical portfolios consisting of stocks with Zacks Rank = 1 that were rebalanced monthly with zero transaction costs. These are not the returns of actual portfolios of stocks. The S&P 500 is an unmanaged index. Visit http://www.zacks.com/performance for information about the performance numbers displayed in this press release.

Read the analyst report on BAH

Read the analyst report on SODA

Read the analyst report on PEP

Read the analyst report on KO

Read the analyst report on DPS

Zacks Investment Research



More From Zacks.com

Rates

View Comments (1)