31 Aug 2022

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Risk and Capital Management: What You Need to Know

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Academic level: College

Paper type: Research Paper

Words: 283

Pages: 1

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The current stock price of PepsiCo is $115.97. The analysts in the evaluation of business stock performance were six in number. According to the analysts' recommendations regarding the company's stock, the shares of PepsiCo have outperformed. In other words, the current stock price in the company is higher than most of the other companies in its industry. The stock price of PepsiCo is undervalued compared to the current stock price. The stock analysts predict that by the end of one financial year, the stock price of PepsiCo may rise to $ 119.33. The value of the stock price in the future is expected to increase compared to the current price. 

Four analysts recommended buying the stock while two of them recommended holding the stock. Due to the anticipated rise in the stock price of PepsiCo's shares, the analysts' ratings tend to favor the purchase of the shares in the company. Furthermore, the performance of the current price of the stock is above the industrial averages of PepsiCo's market. I agree with the buy recommendation. The analysts who recommended hold believe that the share price at PepsiCo will progress at the same pace in comparison with the companies in the market. I can't entirely agree with the analysts on the hold recommendation since the company indicates an increase in the stock price in the next financial year. 

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I would consider purchasing the stock of PepsiCo. The main reason behind the consideration is that the stock price of the company is expected to increase in a year. The increase in the stock price is an indicator of the financial health of the company, which will ensure that the stockholders receive higher returns as dividends. Besides, the current stock price of PepsiCo has outperformed that of the other players in its industry, which is a sign that the company is in a competitive position in the financial market. 

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StudyBounty. (2023, September 17). Risk and Capital Management: What You Need to Know.
https://studybounty.com/risk-and-capital-management-what-you-need-to-know-research-paper

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