Eat-at-home foodmakers have an edge

Article Excerpt

Consumers stocking up on canned foods and snacks as a result of COVID-19 lockdowns have pushed up the shares of all four of these foodmakers. However, for new buying, we recommend investors stick with companies that have little exposure to restaurants. Eateries may have to close their dine-in areas again with a second wave of COVID-19. PEPSICO INC. $131 is still a hold. The company (Nasdaq symbol PEP; Conservative Growth Portfolio, Consumer sector; Shares o/s: 1.4 billion; Market cap: $183.4 billion; Price-to-sales ratio: 2.7; Divd. yield: 3.1%; TSINetwork Rating: Above Average; www.pepsico.com) is the world’s second-largest soft-drink maker after Coca-Cola. Its other brands include Frito-Lay snack foods, Gatorade sports drinks, Tropicana fruit juices and Quaker Oats cereals. In April 2020, PepsiCo paid $3.85 billion for Rockstar Energy Beverages. That firm makes energy drinks that feature high levels of caffeine. It also makes sugar-free and low-calorie drinks. The company plans to use its vast distribution networks to expand the international availability of Rockstar products. Prior to…