Stock of the Week – HANS – Part 3

Stock of the Week - HANSMarket – S&P 500: MA(50) is still below MA(200). Not a confirmed uptrend yet. Better not to buy any stocks at this time.

HANS – Hansen Natural Corporation, Midcap, Consumer Goods, Non-Alcoholic Beverages, $46.41 (14 Sept 10)

Today’s thoughts on HANS: As noted in a fool.com article on 12 September 2010 (Is PepsiCo Stock Cheap Right Now?), HANS’ P/E ratio is 19.8, higher than its competitors PepsiCo (17.0), Coca-Cola (18.1) and Kraft Foods (12.3). That tells us its share price is more expensive than its competitors’, and that may be because it is perceived as a company with stronger growth. A graph in the same article shows that the 5-year trailing EPS growth rate of HANS is significantly higher than the others, which is over 40% – as compared to Coca-cola, at around 10%, and the two others lower than Coca-cola. Although the article is actually focusing on PepsiCo having a cheap price at this time, I think from the same article we can also see HANS as a strong player in the beverage market.

I also note that in Yahoo! Finance, HANS PEG ratio (growth in P/E) is 3.06, and that ranks second in the industry after FIZZ. I would still choose to buy HANS if the market indicated an uptrend.

Disclaimer: Techniques or analysis covered on this website are to be used at your own risk. I cannot guarantee the outcome of applying any of the techniques or analysis, will always be in your favor. You must always do your own analysis and make your own decision before you purchase a stock.

“Stock of the Week” is not a recommendation of stock. It is a coverage of an interesting stock. Unless otherwise stated, no actual purchases or sales of stocks are undertaken. Actions taken are only simulated trading.

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About zakton

I love Internet activities: browsing, blogging, commenting, learning from the Internet etc. etc.
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