Stock Update: PepsiCo Inc (NYSE:PEP) – Philadelphia edges closer to soda tax in defeat for Big Sugar

[Reuters] – City council members in Philadelphia have voted in favor of introducing a levy on soda and other sweetened drinks, moving toward a tax that would be a major victory for U.S. health campaigners who say sugary drinks cause obesity and diabetes. Passage would make Philadelphia the largest U.S. city with such a tax. The measure would add a 1.5 cents-per-ounce tax to soft drinks with added sugar and other sweeteners used in regular and diet sodas made by companies like Coca-Cola Co and PepsiCo Inc. Read more on this. Pepsico, Inc. (PEP) , with a current value of $149.73B, started trading this morning at $102.90. Shares have traded today between $102.54 and $103.82 per share and has traded between $76.48 and $106.94 over the past year. PepsiCo (PEP) shares are currently priced at 21.81x this year’s forecasted earnings, which makes them relatively inexpensive compared to the industry’s 36.04x earnings multiple for the same period. And for those looking to make a return holding the stock, the company pays shareholders $3.01 per share annually in dividends, yielding 2.93%. According to a consensus of 21 analysts, the earnings estimate of $1.29 per share would be $0.03 worse than the year-ago quarter and a $0.04 sequential decrease. What we find to be interesting is that the full-year EPS estimate of $4.73 is a $0.16 better when compared to the previous year’s annual results. The quarterly earnings estimate is predicated on a consensus revenue forecast of $15.38 Billion. If reported, that would be a 3.39% decrease over the year-ago quarter. Recently, Stifel downgraded PEP from Buy to Hold (Apr 14, 2016). Previously, Sterne Agee CRT downgraded PEP from Buy to Neutral. With the above information in mind, readers should note that the average price target is $111.80, which is 8.65% above where the stock opened this morning. See more in (NYSE:PEP) Similar Articles: Company Update: PepsiCo Inc (NYSE:PEP) – PepsiCo Declares Quarterly Dividend Stock Update: PepsiCo Inc (NYSE:PEP) – Twitter names PepsiCo CFO to its board of directors Stock Update: PepsiCo Inc (NYSE:PEP) – PepsiCo to Present at the Consumer Analyst Group of New York Conference