PEP
July 31, 2024 | CMG, Daily JAM, Dividend Income, Jubak Picks, MCD, Mid Term, Morning Briefing, PEP, Top 50 Stocks |
I’ve started to call this The McDonald’s Economy–where the long-term effects of high inflation on prices damps consumer purchasing, but where the recent drop in inflation has limited companies’ “cover” for price increases. The result is that companies are seeing lower sales volumes at the same time as consumers push back ore strongly against price increases. McDonald’s isn’t the only company caught in this vise. Customer traffic at U.S. fast-food restaurants fell 2% in the first half of the year compared to the same period a year ago, according to Circana, a market research company. Circana expects high inflation and rising consumer debt will also dent traffic in the second half of 2024.
October 10, 2023 | Daily JAM, Dividend Income, Jubak Picks, PEP |
Clearly, inflation isn’t bad for everyone. Not if you have pricing power, anyway. Today, PepsiCo (PEP) reported earnings and sales that a beat Wall Street estimates, and raised its guidance for the next quarter.
April 18, 2023 | COST, Daily JAM, GDX, GLD, GOLD, KO, Mid Term, PEP, RWM, Special Reports |
10 Picks for the Coming Recession. This one is especially difficult. Not only do I face the usual crystal-ball problem that comes up whenever you try to pick an investment for the future–what’s the macro and micro world going to look like in 6 months or a year from now–but I’ve got two big Recession-specific challenges. First, is there actually going to be a Recession in 2023? All the signs, in my opinion, point toward a recession in the second and third quarters, but it’s by no means guaranteed that we’ll have the two quarters of negative GDP growth that’s required by the minimal definition of a recession. And what’s the point, you might well ask, of making picks for a coming recession that never arrives? And, second, how bad will this recession be?
June 29, 2022 | COST, Daily JAM, Jubak Picks, KO, PEP, Perfect Five-ETFs, WMT, XLP |
It’s not surprising given the greater than expected decline in U.S. first quarter GDP reported on Wednesday, which followed on the slump in consumer confidence reported Tuesday, that stocks in the consumer staples sector outperformed both consumer discretionary stocks and the market in general. The Consumer Staples Select Sector SPDR ETF (XLP) gained 0.63% on Wednesday, June 29. By contrast the Consumer Discretionary Select Sector SPDR ETF (XLY) lost 0.08%.
May 24, 2022 | Daily JAM, DIS, Dividend Income, DUK, Jubak Picks, KO, MRK, PEP, PFE, Top 50 Stocks, XLU |
Of course, there’s nothing even vaguely normal about a day when a stock falls 43% and takes much of the market with it.Snap’s (SNAP) plunge did take some surprising candidates along for the ride. Tesla (TSLA) dropped 6.93% on yet more bad news on production in its Shanghai factory. Disney (DIS) fell 4.01% just because. SentinelOne (S) was lower by 8.11% since everyone knows that cybersecurity stocks are just a fad.
But on balance, on the green side (and yes, there was a green side to the market) the market did what markets are supposed to do in the face of bad news and an increase in fear.
May 18, 2022 | Daily JAM, Dividend Income, Jubak Picks, KO, PEP, Top 50 Stocks |
Ok, the bad news on profit margins from Target (TGT) was a big deal. No argument. When you’re operating margin falls to 5.37% when Wall Street was projecting 9.5%, it’s a big deal. And after yesterday’s earnings miss from Walmart (WMT), it’s reasonable to extrapolate and say the entire economy and stock market has a cost, inflation, and margin problem. But that doesn’t mean that every company has the same degree of problem. And it certainly doesn’t justify selling everything–and selling to the tune of big losses–shares of every company that sells stuff to consumers. And tomorrow, or the next day, I expect a little more analysis and discrimination in the market. Some of the stocks hit hardest today should rebound handily on that rethink. I’d put PepsiCo (PEP) and Coca-Cola (KO) at the head of that group.
May 9, 2022 | Daily JAM, Dividend Income, Jubak Picks, PEP, Top 50 Stocks |
Last week PepsiCo (PEP) declared a quarterly dividend of $1.15 a share, up about 7% from $1.075 a share. That brings the dividend yield up to 2.7%, almost exactly Coca-Cola’s (KO) 2.72% yield. On the basis of that yield and the pricing power that the company demonstrated in first quarter earnings I’m adding the stock to my Dividend Portfolio. I think it’s a good pick for a period of high inflation and uncertain economic growth.
April 26, 2022 | Daily JAM, Dividend Income, Jubak Picks, KO, PEP, Top 50 Stocks |
Neither company crushed Wall Street earnings expectations, but both reported good enough news in a very tough environment. I own PepsiCo in my long-term 50 Stocks Portfolio, where it was up 220.4% from my initial December 30, 2008 pick as of the close on April 26. I will add the stock to my 12-18 month Jubak Picks Portfolio tomorrow, April 27, with a target price of $190 a share. The stock pays a 2.47% dividend I own shares of Coca-Cola in my Jubak Picks Portfolio, where it was up 29.8% from my February 19, 2021 pick, and in my Dividend Portfolio, where it was up 41.75% from my May 1, 2020 pick. Tomorrow, April 27, I will add shares of Coca-Cola to my long-term 50 Stocks Portfolio. In addition I will raise the target price on Coca-Cola in my Jubak Picks Portfolio to $78 from the current $56 a share.
July 9, 2019 | Daily JAM, PEP, Stock Alerts |
Before the open today, July 9, PepsiCo (PEP) announced second quarter earnings ahead of analyst expectations. But with the stock already up 21.69% for 2019 to date, the market shrugged. PepsiCo shares fell 0.62% at the close. PepsiCo has beaten analyst earnings...
September 29, 2016 | Daily JAM, PEP, Stock Alerts |
To subscribe to JAM you need to fill in some details below including, ahem, some info on how you'll pay us. A subscription is $199 (although if you're subscribing with one of our special offers it will be lower) for a year for ongoing and continuing access to the...
October 7, 2010 | Daily JAM, PEP, Videos |
To subscribe to JAM you need to fill in some details below including, ahem, some info on how you'll pay us. A subscription is $199 (although if you're subscribing with one of our special offers it will be lower) for a year for ongoing and continuing access to the...
October 7, 2010 | Daily JAM, PEP, Stock Alerts |
To subscribe to JAM you need to fill in some details below including, ahem, some info on how you'll pay us. A subscription is $199 (although if you're subscribing with one of our special offers it will be lower) for a year for ongoing and continuing access to the...
