136.12 -0.21 (-0.15%)
After hours: 5:47PM EDT
|Bid||136.11 x 3200|
|Ask||136.59 x 1400|
|Day's Range||136.16 - 137.95|
|52 Week Range||105.03 - 140.45|
|Beta (3Y Monthly)||0.47|
|PE Ratio (TTM)||15.51|
|Forward Dividend & Yield||3.82 (2.78%)|
|1y Target Est||N/A|
Investing in green bonds and other sustainable assets does not necessarily mean missing out gains from other funds, IMF report finds
PepsiCo (NASDAQ:PEP) announced its third-quarter results on Oct. 4. They were healthy enough that I've put the beverage and snack food company on my list of seven beverage stocks to buy now. But before I get into the seven names on my list, I thought I'd explain why I'm so high on beverage stocks. The truth is, a lot of interesting stuff is happening in the beverage world at the moment, not the least of which is a fight by traditional beverage makers, non-alcoholic and alcoholic alike, to get into cannabis-infused drinks. The payoff could be enormous for those brands that resonate with the public. InvestorPlace - Stock Market News, Stock Advice & Trading TipsFurthermore, long-time partnerships seem to be fracturing as larger beverage businesses look to find growth wherever they can. The gloves have come off.Big or small, you've got to have a vision for sustainable growth or you're going to be left in the dust. * 10 Lithium Stocks to Buy Despite the Market's Irrationality Here are the seven beverage stocks I believe will do just that. Beverage Stocks to Buy: PepsiCo (PEP)Source: suriyachan / Shutterstock.com PepsiCo released its Q3 2019 results Oct. 3 and they were very healthy. On the top line, Pepsi had organic growth of 4.3%. In terms of profits, Pepsi generated $2.86 billion in operating profits in the quarter, $11 million higher than the same quarter a year earlier. This is despite PEP spending $2 billion on its business through the first nine months of the year and an estimated $4.5 billion for the entire fiscal year. "While adverse foreign exchange translation negatively impacted reported net revenue performance, organic revenue growth was 4.3% in the quarter," stated CEO Ramon Laguarta. "We are making good progress against our strategic priorities and our businesses are performing well … Given our performance year-to-date, we now expect to meet or exceed our full-year organic revenue growth target of 4%."One of the big reasons for its success so far in 2019 are the sales from Bubly, the sparkling water brand it launched in 2018. According to Bloomberg Intelligence, it is taking market share from LaCroix, which saw its sales fall by 14% in the four weeks ended July 14, compared to a 96% increase for Bubly in the same period. Pepsi is investing in the brand and LaCroix is feeling the heat.Over the past year, Bubly has generated more than $170 million in revenue and grabbed 7.7% of the sparkling water market in short order. With free cash flow expected to be $5 billion or more in 2019, look for the company to buy back more than $3 billion of PEP stock. Canopy Growth (CGC), Constellation Brands (STZ)Source: Shutterstock If you blinked, you probably missed the news Oct. 2, that Canopy Growth (NYSE:CGC) was buying 72% of BioSteel Sports Nutrition, a company that specializes in sports nutrition and hydration products for high-performance athletes like Dallas Cowboy running back Ezekiel Elliott. With an option to buy the remaining 28% of BioSteel in the future, I see this acquisition as a no-brainer for the Canadian cannabis company backed by Constellation Brands (NYSE:STZ). When the news first broke, I was all over the story because, unlike the $600 million Canopy spent on Hiku, BioSteel has "big" written all over it.Not only does Canopy get a beverage and nutrition company that it could grow on its own, separate from its cannabis business, but BioSteel is also a great vehicle to roll out CBD-based products to athletes and non-athletes across North America. The CBD industry is projected to grow to $17.3 billion over the next seven years. Add these drinks to the CBD-infused chewables and chocolates and you've got a recipe for significant revenue generation. * 10 Winning Stocks to Buy and Stick With for the Long Haul Take Constellation's distribution reach, Canopy's understanding of cannabis and hemp and BioSteel's market leadership, and this investment seems like a slam dunk. Boston Beer (SAM)Source: LunaseeStudios / Shutterstock.com The good news for owners of Boston Beer (NYSE:SAM) stock is that it's up 54% year-to-date through Oct. 8. The bad news is that it was as high as $445 in early September. Not to worry. Just when you think CEO and founder Jim Koch is down and out, he figures out how to keep Boston Beer growing. Are you familiar with White Claw? It's the leading hard seltzer in the U.S., brought to consumers by the same people who sell Mike's Hard Lemonade, and outselling Budweiser and every craft beer in the process. A fad, you say. Don't tell that to Koch. He's got Truly, the second-place brand in terms of market share at 30%, half White Claw's, but still pretty darn impressive. On Oct. 4, thanks to the company finding the internal capacity to produce Truly in-house instead of using third-party co-packers, UBS Group analyst Sean King upgraded his rating on the stock from $305 to $390. "Truly's stellar growth in fiscal 2019 failed to translate into meaningful earnings growth year-to-date as the company's heavy reliance on co-packers weighed on margins," King wrote. "We now believe that this headwind will ease into fiscal 2020 with greater internal capacity coming. The extent of vertical integration and outlook for Truly growth will be key determinants of earnings growth for Boston Beer in fiscal 2020." Here's what I know. I live on Canada's east coast. You can't find either product on store shelves. Down in the U.S., it's estimated that only 20% of restaurants and bars carry White Claw indicating just how much business is still on the table.I see $400 again soon. Starbucks (SBUX)Source: monticello / Shutterstock.com What would a list of beverage stocks be if it didn't contain the world's biggest coffee company.Starbucks (NASDAQ:SBUX), like Boston Beer, always seems to find a way to reignite growth at precisely the right time, and in doing so, keep the SBUX share price moving higher. In 2019, it's up 34% YTD, including dividends. As if you needed another reason to own SBUX stock, I've come across a real doozie. According to Schaeffer's Investment Research, Starbucks is one of only two S&P 500 stocks that have moved higher in the fourth quarter for 10 consecutive years, averaging a Q4 return of 10.6%.While there are other S&P 500 stocks that have better average returns in the fourth quarter -- Delta (NYSE:DAL) has an average return of 16.6%, delivering positive returns in nine out of the last 10 years -- its consistency is important as we approach the 11th anniversary of the latest bull market. Sure, the company's admission that its 10% growth rate forecast probably won't carry into 2020 due to some one-time, tax-related issues but unless people stop drinking coffee, it will continue to do just fine. Down from its 52-week high of $99.72 reached in July, any future weakness should be met with increased buying. * 7 'A'-Rated Stocks to Buy for the Rest of 2019 As beverage stocks go, Starbucks is a must-own. LVMH (LVMUY)Source: lentamart / Shutterstock.com Most people wouldn't consider luxury goods conglomerate LVMH (OTCMKTS:LVMUY) a beverage company. However, given the "MH" in its name stands for Moet-Hennessy, which merged with Louis Vuitton in 1987 to form LVMH, I would beg to differ. If there were a consumer goods company that is too big too fail, I would go with LVMH every day of the week and twice on Sunday. That's why I recommended LVMUY stock in September as part of my article about one-stock portfolios to own. As I said then, LVMH generates almost $53 billion in annual revenue from more than 70 different brands including makers of wine, champagne, cognac, and whiskey. In the first half of 2019, its Wines & Spirits group generated 6% organic growth, with its cognac and spirits business accounting for 61% of sales and champagne and wine the remaining 39%. Although LVMH believes its Wines & Spirits group is facing a difficult business environment, Hennessey managed to grow volumes by 8% in the first six months of the year thanks to strong sales of its VS and VSOP cognac. It pays to own quality. Molson Coors (TAP)Source: Drew Stephens via FlickrMolson Coors' (NYSE:TAP) Canadian division opened a new brewery in Chilliwack, British Columbia, in September. It was built to replace its Vancouver brewery that was sold in 2015. Three years in the making, it's a $300-million facility located on 36 acres, and employing 100 people. More importantly, it is the company's most modern brewery, that will reduce energy and water use by 20% and 40%, respectively. In terms of capacity, it will be able to brew more beer in a year than all of the craft beer sold in B.C. in its most recent fiscal year. While the recent resignation of Hexo (NYSE:HEXO) CFO Michael Monahan has some worried about the cannabis company's future, MKM Partners analyst Bill Kirk remains bullish about its stock. Kirk rates it a buy with a target price of $9.02. I mention Hexo because it is the company that Molson Coors Canada has partnered with to produce cannabis-infused drinks for the Canadian market. Named Truss Beverages, Molson Coors owns 57.5% with Hexo owning the rest. Molson Coors believes that the Canadian cannabis beverages market could be worth between $1.5 billion and $3.0 billion. With legalization of cannabis-infused drinks to take place on Oct. 17 and allowing for another 60 days to get the appropriate licensing, Truss should have products in stores as early as mid-December. * 7 Funds to Buy If the Market Turns Sour Molson Coors might be a beverage underdog, but if you can afford to risk a few dollars, its gamble on cannabis that might well pay off handsomely. Coca-Cola (KO)Source: MAHATHIR MOHD YASIN / Shutterstock.com I didn't want to pick Coca-Cola (NYSE:KO) when Pepsi's already on the list but the fact that it's launching its own energy drink in the U.S. makes it noteworthy.Investors already knew about Coca-Cola Energy because the line of drinks has already launched in Spain, Hungary and 25 other markets in Europe and Australia. In addition to Coca-Cola Energy, the lineup includes a zero sugar version, a cherry flavor and a zero sugar cherry offering. Coca-Cola already had a partnership with Monster Beverage (NASDAQ:MNST) that was signed in 2015 that gave Coke a minority position in the energy drink maker and made Coca-Cola its preferred distribution partner. In addition, Coca-Cola transferred its energy drink assets to Monster and Monster gave Coke its non-energy business. It was a marriage made in heaven until Coke decided it wanted back in the energy drink game. The two parties went to arbitration in October 2018. The arbitration tribunal ruled in July that Coke could continue to sell Coca-Cola Energy because it fell under the Coca-Cola brand name and didn't violate the non-compete clause. Coca-Cola has brought a number of interesting products in the past year and Coca-Cola Energy is certainly one of them. Add to this its entry into the coffee market through Costa Coffee and its growth engine might rev up its share price. At the time of this writing, Will Ashworth did not hold a position in any of the aforementioned securities. More From InvestorPlace * 2 Toxic Pot Stocks You Should Avoid * 10 Super Boring Stocks to Buy With Super Safe Returns * 10 Winning Stocks to Buy and Stick With for the Long Haul * Don't Give Up on These 4 Cannabis Stocks The post 7 Beverage Stocks to Buy Now appeared first on InvestorPlace.
With Q3 2019 earnings season set to heat up when the big banks start to report on Tuesday, October 15, it's time to see what investors should expect from Coca-Cola...
(Bloomberg Opinion) -- Why should society permit the existence of food companies that contribute to poor health? The standard answer is that people should be allowed to make bad choices about what they eat and drink. But that’s a slippery defense when the consumers are children and the choices they face are loaded against their wellbeing, as Thursday’s British government report on childhood obesity makes clear.The snacks industry — from Mondelez International Inc. to Coca-Cola Co. and from Nestle SA to the Kraft Heinz Company — needs to rethink its purpose, and strategy, if its license to operate is to endure.Former U.K. chief medical officer Professor Sally Davies, the report’s author, cites multiple causes for a saddening rise in obesity among England’s 10-11-year-olds since 1990. The giant food brands are only part of the problem but that hardly absolves them from leading the solution. As Davies says, cheap unhealthy food tends to be the most readily available. Portion inflation is rampant. Advertising or sponsorship is pervasive. Healthy options are often unaffordable for those on low incomes, while the unhealthy options are cheap.Davies’s recommendations include some radical ideas. The U.K. public may be banned from eating and drinking on public transport. Industry faces calorie caps on food portions consumed “out-of-home,” tiered VAT on unhealthy food, plain packaging and the end of tax deductibility of marketing costs for unhealthy products. These may just be proposals. But the direction of travel is clear.This is what happens when an industry fails to self-regulate to mitigate its worst effects. Governments wake up. The food and drink industry is a big employer and a big taxpayer. Even so, the economics favor intervention. The medical costs of obesity, coupled with lost productivity, are 3% of global GDP, according to McKinsey research from 2014. Today’s unhealthy children are tomorrow’s sick workforce.The U.K. Food and Drink Federation, the lobby group, says “punitive action” might hinder continuing the progress the manufacturers have already made in cutting salt, sugar and calories from their products over the last four years. It says the industry must “take the consumer with us.” The question is whether it is taking itself and its customers to an early grave. The industry needs to see this problem as an opportunity not a threat. First, it should be clear about its role in society. Making treats that people want to eat can be a good reason for a corporation to exist, but not when it adds to a public health crisis. This doesn’t mean PepsiCo Inc. ending production of Doritos. But it does mean defining responsibly what the target market — and age group — is for such products. And it requires combining marketing with education.At the same time, food manufacturers should redouble their efforts to innovate healthier, cost-effective alternatives to sugar and salt. This is a chance for the food giants to think about the huge market for healthy snacks. Food technology has a vital role here and it’s best mediated by the private sector. R&D has already helped, as with the development of Nestle’s so-called hollow sugar.This week the OECD proposed reforms to corporate taxation, which would allow governments to tax digital companies that generate revenues in countries where they have no physical presence. The food industry faces a similar revenue challenge. Its products will be subject to extra taxes in certain markets until they start to use their well-funded research labs to help meet national health objectives.It’s not clear that the sector sees obesity as a strategic issue yet. Unilever NV is recycling plastic packaging but still aiming to sell lots more Ben & Jerry’s ice cream. The debate among investors about what stocks to divest centers on fossil fuels right now. If food companies don’t act, they’ll join tobacco and oil in the sin bin.\--With assistance from Lara Williams.To contact the author of this story: Chris Hughes at firstname.lastname@example.orgTo contact the editor responsible for this story: James Boxell at email@example.comThis column does not necessarily reflect the opinion of the editorial board or Bloomberg LP and its owners.Chris Hughes is a Bloomberg Opinion columnist covering deals. He previously worked for Reuters Breakingviews, as well as the Financial Times and the Independent newspaper.For more articles like this, please visit us at bloomberg.com/opinion©2019 Bloomberg L.P.
PepsiCo is close to announcing a deal giving it exclusive marketing and pouring rights at SoFi Stadium, the new venue for the Los Angeles Chargers and Los Angeles Rams now under construction outside L.A., sources told Sports Business Daily, an affiliated publication of L.A. Biz and the New York Business Journal. The deal also includes rights throughout the surrounding Hollywood Park entertainment district, except for tenants that have other arrangements, and continued sponsorships of the Rams and Chargers. Coca-Cola (NYSE: KO) currently is poured at the temporary homes of the Chargers (Dignity Health Sports Park) and Rams (L.A. Coliseum) even though Purchase, New York-based Pepsi (NASDAQ: PEP) sponsors the teams.
Check out these three cloud-focused SaaS stocks we found using our Zacks Stock Screener for tech investors to consider buying in the fourth quarter of 2019...
This week: how Greta Thunberg reverberated through the Global Impact Investing Network conference in Amsterdam, how financial advisers are hoping an app will move into impact investing more widely, and how green bonds are spreading to new frontiers. The presence of Greta Thunberg could be felt throughout last week’s Global Impact Investing Network conference in Amsterdam. This was especially evident from the final event, a debate titled “With a World on Fire, Visions of the Future of Finance”.
PepsiCo Inc. has priced its first-ever green bond, earmarking the proceeds from the $1 billion offering to help the food and beverage giant cut virgin-plastic use and replenish the water it consumes in making sodas and snacks.
We can judge whether PepsiCo, Inc. (NASDAQ:PEP) is a good investment right now by following the lead of some of the best investors in the world and piggybacking their ideas. There's no better way to get these firms' immense resources and analytical capabilities working for us than to follow their lead into their best ideas. […]
Moody's Investors Service ("Moody's") today assigned an A1 rating to PepsiCo, Inc's ("PepsiCo") EUR 500 million 20 year senior unsecured notes. PepsiCo's A1 long-term senior unsecured rating is supported by its strong snack food and beverage franchises, extensive global footprint, and solid innovation pipelines. PepsiCo faces challenges to grow its volume in mature carbonated soft drink (CSD) markets.
Higher earnings and revenues in the third quarter, and a strong advertisement plan seem to pave the path for PepsiCo's success. Here's what you need to know.
(Bloomberg) -- PepsiCo Inc. has joined the charge to make green bonds more mainstream as the soda giant priced its debut sale of the debt.The company offered $1 billion of senior unsecured green securities, according to a person with knowledge of the matter. The 30-year bonds will yield 92 basis points above Treasuries, after initially discussing 110 basis points, said the person, who asked not to be identified as the details are private. That’s the larger end of its targeted range, and at the lower end of price talk, the person said.Pepsi plans to invest the proceeds in sustainable development goals as defined by the United Nations, including eco-friendly plastics and packaging and cleaner transportation, according to a filing Monday. The packaged food and beverage company already has about $34 billion of debt outstanding, but this is its first green bond.The company’s existing 30-year bonds due 2049 currently trade about 94 basis points wider than similarly dated Treasuries, according to Trace bond price data. CreditSights analysts James Dunn and Ben Morgan said earlier Monday that the new notes would likely price closer to those outstanding, especially given the green attributes of the bonds.‘Fits In’Also working in Pepsi’s favor is that it’s a well-known, highly-rated issuer that’s in the market often and people understand, said Tony Trzcinka, a portfolio manager at Impax Asset Management, which specializes in sustainable finance.“It’s important on the corporate side for most investors that these are benchmark-type issues with seasoned issuers that are investment-grade quality,“ Trzcinka said. “It’s something that fits right in, so it’s a very easy bond to buy.”Investors had placed orders worth as much as $3.65 billion, according to another person with knowledge of the matter. Pepsi had been aiming to sell between $750 million and $1 billion of the bonds, the person said.Morgan Stanley, Goldman Sachs Group Inc. and Mizuho Financial Group Inc.managed the deal, with Morgan Stanley serving as green structuring adviser, according to a bond prospectus.Proceeds from the deal are also marked for tree planting and for projects that will improve Pepsi’s operational water-use efficiency, according to a statement Monday. The company said it has named Simon Lowden as its first chief sustainability officer, who had been global foods president.Gaining PopularityGreen bonds are a small fraction of the $5.8 trillion U.S. investment-grade corporate bond market, but increasing in popularity as companies develop initiatives to combat climate change. Over $120 billion worth of green bonds were issued in the first half of 2019, up from $85 billion in the last six months of 2018 according to BloombergNEF.Pepsi’s rival Coca-Cola Co. earlier this year amended a loan issued in June 2015 to include a sustainability element, and both companies have pledged to use more recycled plastic in their bottles over the next decade. Sustainable debt tools like green bonds are a potential way for beverage companies to fund transition activities toward a more environmentally and socially sustainable future, said Daniel Shurey, head of green finance at BloombergNEF.“A key example would be using a green bond to finance the improvement of water and wastewater management, which is a material environmental factor for beverage companies,” Shurey said in an email Monday.(Updates with bond managers in eighth paragraph)\--With assistance from Michael Gambale and Craig Giammona.To contact the reporters on this story: Molly Smith in New York at firstname.lastname@example.org;Caleb Mutua in New York at email@example.comTo contact the editors responsible for this story: Nikolaj Gammeltoft at firstname.lastname@example.org, Shannon D. Harrington, Michael HythaFor more articles like this, please visit us at bloomberg.com©2019 Bloomberg L.P.
Moody's Investors Service ("Moody's") today assigned an A1 rating to PepsiCo, Inc's ("PepsiCo") $1 billion 30 year senior unsecured notes. PepsiCo's A1 long-term senior unsecured rating is supported by its strong snack food and beverage franchises, extensive global footprint, and solid innovation pipelines. PepsiCo faces challenges to grow its volume in mature carbonated soft drink (CSD) markets.
The Zacks Analyst Blog Highlights: Verizon Communications, PepsiCo, Biogen, Bank of New York ??? Mellon and Cerner
PepsiCo reported solid 3Q19 results on October 3 and said organic revenue growth would 'meet or exceed' its 4% target. We note that management typically issues cautious guidance at the beginning of the year and raises it in later quarters.
PepsiCo, Inc. (NASDAQ: PEP ) shares moved higher after reporting a third-quarter earnings and sales beat on Thursday morning. Credit Suisse analyst Kaumil Gajrawala said better top-line growth is allowing ...
PepsiCo (NASDAQ: PEP) is introducing 15 Tesla Inc (NASDAQ: TSLA) Semi electric trucks at its Frito-Lay manufacturing site in Modesto, California, as part of a broader plan to replace diesel-powered freight equipment with zero-emission and near-zero emission trucks. The rollout comes after the company ordered 100 Tesla Semis in 2017 and is part of the brand's mission to reduce its absolute greenhouse gas emissions by 20% by 2030, the company said in a news release. Pepsi's EV purchase caps an eventful week in the big brand electric vehicle space.
One billion women around the world remain unbanked, meaning they don't have access to credit or financing options to invest in their futures. Kiva is a micro-finance crowd-funding platform that has spent the last 13 years trying to bridge that gap. The app recently crossed $1 billion in loans, funding more than 2.7 million women in 94 countries worldwide.