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.
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