Yahoo Finance Plus’ investment idea of the day is PepsiCo

Yahoo Finance’s Alexis Christoforous, Jared Blikre and Kristin Myers discuss why Yahoo Finance Plus’ investment idea of the day is PepsiCo.

Video transcript

KRISTIN MYERS: Tell us about the Yahoo Finance Plus investment idea of the day. I see that it's Pepsi. What's behind that call?

JARED BLIKRE: That's right. They have announced earnings just last week. And we're going to check out this bullish call by Argus Research. Now here we go. They have a price target of 164. So they are maintaining that. And here's what they're saying about the stock after it announced to earnings last week. We expect cost-cutting to continue to benefit earnings, look for PepsiCo to achieve its goal of a billion dollars in annual cost savings and productivity gains through 2023.

Now these initiatives include optimizing the company's global manufacturing footprint and reengineering its distribution network. And a couple of comments on the numbers themselves, we are maintaining our 2021 estimate of $6.10 per share. That's up about 10 and 1/2%, leaving our '22 estimate at $6.60. That said, moving along here, our target price of $164, along with the dividend, implies a potential total return of approximately 18% from current levels. And we'll just check out a one-year chart on PepsiCo. This is a staple, so sideways action is to be expected a lot of the time, but nice to see it up 5% on a trailing basis.