Two Names Continue to Impress
In the second quarter, I recommended PepsiCo (PEP) and Zimmer Holdings (ZMH). Both companies recently reported better-than-expected earnings for that quarter, but their stocks followed very different trajectories. PepsiCo shares rallied to a recent high of $72.76, while Zimmer's share price declined a bit to $58.70 based on a modest revenue shortfall and some market-share loss in the U.S. I continue to like both names, with a particular emphasis on Zimmer in light of the stock's recent price decline.
PepsiCo is a leading consumer packaged goods manufacturer with iconic brands such as Pepsi, Frito-Lay and Quaker Oats. During the recent quarter, PepsiCo reported better-than-expected earnings of $1.12 per share vs. $1.09 consensus. Revenues were in-line driven by solid 1% unit volume gains and 4% price/mix benefits. Management affirmed the guidance for the year, even with the tough macro concerns across Europe. My high opinion is due to the company's stable revenue and earnings profile, topped-off by a high-dividend yield....513 more words left in this article. To read them, just click below and try Real Money FREE for 14 days.
There’s no substitute for a trading floor to get great ideas, so Jim Cramer created a better one at Real Money and blogs there exclusively. We then added legendary hedge fund manager, Doug Kass, with his exclusive Daily Diary and best investing ideas. Staffed with more than 4 dozen investing pros, money managers, journalists and analysts, Real Money Pro gives you a flood of opinions, analysis and actionable trading advice found nowhere else, and allows you to interact directly with each expert.
Already a Subscriber? Please login.
