Does Sponsoring the Super Bowl Halftime Show Pay Off? (NYSE: PEP)

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Pepsico, Inc. ($PEP)

Does sponsoring the Super Bowl halftime show pay off? Looking at the stock price, the answer is YES. Pepsi is the 2nd largest food and beverage company in the world. It has a market cap of $150.75 billion. The stock closed at $105.11 on Friday, February 3, 2017. The previous close was $104.03. As of Friday’s close, $PEP is up 0.5% year-to-date and has an average daily volume of 4.4 million shares.

Performance

  • 52 Week range:  Low of $96.09 (February 2016) and the High is $110.94 (July 2016)
  • 1 Month performance: +0.5%
  • 1-year performance: +7.7%

Moving Averages

  • 50-day simple moving average (SMA): $103.28
  • 100-day SMA: $104.26
  • 200-day SMA: $104.09

Camtrading’s Opinion

The Super Bowl is the biggest sports event in the U.S. year after year. This year, the cost of a 30-second commercial is over $5 million. Since Super Bowl XLII (February 3, 2013), Pepsi has sponsored the Super Bowl halftime show. Judging by the stock price, $PEP has increased by +62% in four years. Pepsi is a dividend paying stock and is considered a long-term investment. Because of their successful branding efforts, the stock price does indicate that being the official sponsor of the NFL has paid off.

Disclosure: I do not own stock in Pepsi. This article only expresses my opinion and is not a recommendation of the company. I started a new section on my blog where I post a quick analysis on companies. Check out my first two on Frontier Communications and Calavo Growers.

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