Yahoo Finance’s Alexis Christoforous, Jared Blikre and Kristin Myers discuss why Yahoo Finance Plus’ investment idea of the day is PepsiCo.

Video Transcript

KRISTIN MYERS: Tell us about the Yahoo Finance Plus investment idea of the day. I see that it's Pepsi. What's behind that call?

JARED BLIKRE: That's right. They have announced earnings just last week. And we're going to check out this bullish call by Argus Research. Now here we go. They have a price target of 164. So they are maintaining that. And here's what they're saying about the stock after it announced to earnings last week. We expect cost-cutting to continue to benefit earnings, look for PepsiCo to achieve its goal of a billion dollars in annual cost savings and productivity gains through 2023.

Now these initiatives include optimizing the company's global manufacturing footprint and reengineering its distribution network. And a couple of comments on the numbers themselves, we are maintaining our 2021 estimate of $6.10 per share. That's up about 10 and 1/2%, leaving our '22 estimate at $6.60. That said, moving along here, our target price of $164, along with the dividend, implies a potential total return of approximately 18% from current levels. And we'll just check out a one-year chart on PepsiCo. This is a staple, so sideways action is to be expected a lot of the time, but nice to see it up 5% on a trailing basis.