McDonald’s stock trades at 27.3 times expected 2023 EPS, 24.8 times estimated 2023 earnings of $11.75 and 22.7 times estimated 2025 earnings of $12.80 per share. The stock’s 52-week trading range is $228.34 to $291.67, and the high was posted Thursday. McDonald’s pays an annual dividend of $6.08 (yield of 2.09%). Total shareholder return over the past 12 months is 16.31%.
PepsiCo
Snack food and soft-drink maker PepsiCo Inc. (NYSE: PEP) has added 5.6% to its share price over the past 12 months, including a gain of 9.1% in the past three months. On Thursday, the company announced that it plans to put more than 700 electric delivery vehicles into service this year in its Frito-Lay division, a move PepsiCo said was the equivalent of removing 1,533 passenger cars from the nation’s roads. The EVs will be made by Ford, BYD, Tesla and others, according to the company.
Of 23 brokerages covering the stock, 11 have a Buy or Strong Buy and another 11 have Hold ratings. At a share price of around $185.30, the upside potential based on a median price target of $189.00 is 2%. At the high price target of $205.00, the upside potential is 40.6%.
First-quarter revenue is forecast at $17.28 billion, down 38.3% sequentially but 6.7% higher year over year. Adjusted EPS are forecast to dip sequentially by 17.1% to $1.39 but rise by 7.7% year over year. For the full 2023 fiscal year, analysts expect PepsiCo to post revenue of $89.79 billion, up 3.9%, and EPS of $7.26, up 6.9%.
PepsiCo stock trades at 25.5 times expected 2023 EPS, 23.4 times estimated 2024 earnings of $7.91 and 21.8 times estimated 2025 earnings of $8.50 per share. The stock’s 52-week range is $154.86 to $186.84. PepsiCo pays an annual dividend of $4.60 (yield of 2.49%). Total shareholder return for the past year was 8.46%.
3M
Over the past 12 months, shares of Dow component 3M Co. (NYSE: MMM) have tumbled by just over 30%. 3M was among our Dogs of the Dow for 2023, one of 10 Dow stocks paying the highest dividend, largely as a result of a falling share price. The stock price has dropped about 12.7% in 2023 and was down 14% at the end of March to give 3M the dubious honor of being the worst performer among the Dow stocks.
The company is defending itself in two major legal issues: 3M is a producer of polyfluoroalkyl substances, known as PFAS, that are “forever” pollutants that are likely to come under stricter federal regulations. The other concerns defective combat earplugs. 2023 is not shaping up as a good year for 3M.
Analyst sentiment reflects the company’s woes. Of 19 brokerages covering the stock, 12 have a Hold rating. There are two Strong Buy ratings and five Sell or Strong Sell ratings. At a per-share price of around $104.70, the implied gain based on a median price target of $112.50 is 7.4%. At the high target of $181.00, the upside potential is 72.9%.
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