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The Zacks Analyst Blog Highlights: Pepsico, Boston Beer and Sanderson Farms

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For Immediate Release

Chicago, IL – September 7, 2017 – Zacks.com announces the list of stocks featured in the Analyst Blog. Every day the Zacks Equity Research analysts discuss the latest news and events impacting stocks and the financial markets. Stocks recently featured in the blog include Pepsico, Inc.(NYSE:(PEP - Free Report)  – Free Report), Boston Beer Company, Inc. (NYSE:(SAM - Free Report)  – Free Report) and Sanderson Farms, Inc.(NASDAQ: – Free Report).

Today, Zacks is promoting its ''Buy'' stock recommendations. Get #1Stock of the Day pick for free.

Here are highlights from Wednesday’s Analyst Blog:

3 Stocks Set to Benefit from NFL Season

College football began in earnest last week, and starting Thursday night, the National Football League is set to take over the American sports consciousness for the next six months. With that in mind, we’re going to look at a few stocks that are set to score during the upcoming 2017 NFL season.

The NFL is a year-round topic for many sports fans, but from now until the Super Bowl, the league will dominate people’s televisions. Diehard and casual fans will converge at bars and in living rooms around the country on Mondays, Thursdays, Sundays, and even some Saturdays throughout the season.

And a few things will pretty much always be present when people get together to watch NFL games: beer, soda, snacks, and meat.

So now let’s take a look at a few companies with great Zacks Ranks that also have the ability to profit from the NFL season by helping fans make their game days more enjoyable.      

Pepsico, Inc.(NYSE:(PEP - Free Report) – Free Report)

Pepsico is currently a Zacks Rank #2 (Buy) and has big-time exposure to the NFL, beyond selling snacks and beverages that fans around the U.S. enjoy during games. The company boasts Pepsi, Lay’s, Tostitos, Doritos, Mountain Dew, and more on its loaded roster of football watching treats.

The food and beverage powerhouse is coming off a strong second quarter that saw Pepsico’s revenue increase by 2% and organic sales jump 3.1% from the year-ago period. The company posted earnings of $1.46 a share, which marks a 6% climb. Pepsico expects full-year 2017 organic revenues to grow by at least 3%, while earnings are expected to come in at $5.13 per share.

The company’s return on equity is 59.74%, which is far above the industry average of 2.24% and the S&P 500 average of 15.89%. And the company has received eight positive earnings estimate revisions for the current fiscal year within the past 60 days, as well as six positive revisions for the next fiscal year in that same time, so analyst sentiment is clearing improving.

On top of Pepsico’s strong financials, the company is one of the NFL’s biggest marketing partners and has been for decades. Pepsico is in the latter half of a 10-year, roughly $1 billion marketing partnership that kicked off in 2012, which makes Pepsi, Gatorade, Frito-Lay, Tropicana, and Quaker Oats official league brands.

Starting Thursday night, Pepsico will once again see Gatorade on every NFL sideline, and watch Pepsi, Doritos, and Tostitos commercials run constantly during NFL games.

Shares of Pepsico currently rest just a few dollars below their all-time high, which was reached in August. And now, the company and its investors are set to win even more this NFL season.

The Boston Beer Company, Inc.(NYSE:(SAM - Free Report) – Free Report)

The Boston Beer Company is currently a Zacks Rank #1 (Strong Buy). The company also received a “B” grade for Growth in our Style Scores system.

Boston Beer’s second quarter 2017 revenues increased by 1%, while its gross margin jumped to 54.1% from 51.8%. The Beverages – Alcohol industry’s average net margin is 7.58%, while the Boston Beer Company boasts a net margin of 9.65%. The company has also received two upwards estimate revisions for the current and next fiscal years within the past 60 days.

Boston Beer Company updated its full-year non-GAAP earnings per diluted share projection to between $5.00 and $6.20, which is up from the previous estimate of $4.20 a share to $6.20 share. The company projects its full fiscal 2017 gross margin will be between 51% and 52%.

The brewer of Samuel Adams beer, including its flagship Boston Lager, helped to kick off a craft brewing revolution in the 1980s. Now, with the New England Patriots starting the season as heavy favorites to repeat as Super Bowl champions, Boston’s hometown beer company might be poised to have a great NFL season as well.

Sanderson Farms, Inc.(NASDAQ: – Free Report)

Sanderson Farms is currently a Zacks Rank #1 (Strong Buy). The company, which sells a wide range of wholesale chicken to everything from grocery stores to fast food chains, boasts “A” grades across the board in our Style Scores system.

The company recently posted third quarter net sales of $931.9 million, up from $728 million during the same period last year. Sanderson Farms’ net income skyrocketed to $5.09 a share from $2.42 a share in the year-ago period.

Sanderson Farms has had a stellar year-to-date price change of 56.54%, which blows out the industry average of 2.63% and the overall S&P 500 at 9.33%. The chicken giant with a market cap of $3.36 billion has a P/E ratio of 11.64, which marks a nearly 7% discount compared to the industry average.

The Zacks Consensus Estimate for Sanderson Farms’ current-quarter has increased 47.2% over the last 60 days. The company’s next-year earnings estimates jumped by 28.5% during the same time frame. This year, Sanderson Farms’ EPS is projected to soar by 56.1%, and revenues are expected to jump 18.8%.

Sanderson Farms has seen its stock price climb 11% over the last four weeks. Shares of the chicken company now sit just under its all-time high. Sanderson Farms is set to cash in during the NFL season, which is heavy on grilling and bar food and calls for chicken galore.

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Today, Zacks is promoting its ''Buy'' stock recommendations. Get #1 Stock of the Day pick for free.

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