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Rating Change Detail - PEPSICO, INC. (PEP) - 7/2/2009
The stock was downgraded from Strong Interest to No Interest on 7/2/2009 by the Growth/Value Investor Strategy based on the principles of James P. O'Shaughnessy. The score according to this strategy fell from 100% to 80%. A full detailed analysis of PEP using this strategy is included below. For a full detailed analysis of PEP using 12 proven strategies of Wall Street Legends, take a free trial to Validea.com

Detailed Analysis of PEPSICO, INC. (PEP)

Strategy: Growth/Value Investor - Based on: James P. O'Shaughnessy

MARKET CAP: [PASS]

The Cornerstone Value Strategy looks for large, well known companies whose market cap is greater than $1 billion. These companies exhibit solid and stable earnings. PEP's market cap of $87,990 million passes this test.

CASH FLOW PER SHARE: [PASS]

The second criterion requires that the company exhibit strong cash flows. Companies with strong cash flow are typically the value oriented investments that this strategy looks for. The company's cash flow per share must be greater than the mean of the market cash flow per share ($0.58). PEP's cash flow per share of $4.26 passes this test.

SHARES OUTSTANDING: [PASS]

This particular strategy looks for companies whose total number of outstanding shares are in excess of the market average (593 million shares). These are the more well known and highly traded companies. PEP, who has 1,570 million shares outstanding, passes this test.

TRAILING 12 MONTH SALES: [PASS]

A company's trailing 12 month sales ($43,181 million) are required to be 1.5 times greater than the mean of the market's trailing 12 month sales ($17,465 million). PEP passes this test.

DIVIDEND: [FAIL]

The final step in the Cornerstone Value strategy is to select the 50 companies from the market leaders group (those that have passed the previous four criteria) that have the highest dividend yield. PEP's dividend yield of 3.18% fails this final criterion. Even though it did pass the previous four criteria it would fail the overall methodology.

For a full detailed analysis of PEP using 12 proven strategies of Wall Street Legends,
take a free trial to Validea.com

Rating Change Detail - PEPSICO, INC. (PEP) - 7/2/2009

Detailed Analysis of PEPSICO, INC. (PEP)

Strategy: Growth/Value Investor - Based on: James P. O'Shaughnessy