Sodastream International Ltd (SODA) Should Be Soaring Right Now

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SodaStream is now trading at just 17 times this new year’s profit guidance. That’s the same multiple as PepsiCo, Inc. (NYSE:PEP), and The Coca-Cola Company (NYSE:KO) is fetching 18 times this year’s bottom-line forecast. SodaStream is no blue chip, but it’s also growing substantially faster than these stodgy beverage giants.

Despite the market’s reaction to today’s strong performance, SodaStream is starting to woo investors. The stock moved 37% higher last year, and it was up 17% as of yesterday’s close in 2013.

SodaStream is becoming a global player after decades of growth in Europe. Earlier this month it broke through with its first Super Bowl commercial, willing to pay up to share the promotional stage with Coke and Pepsi ads.

There are also plenty of things to get excited about in 2013. At an investor conference last month, SodaStream hinted at a partnership with an appliance maker for a refrigerator that could dispense sparkling water via SodaStream carbonators. Last week it announced that Samsung would be putting out that fridge.

We also have single-serve syrup pods — SodaCaps — that simplify the flavoring process. These capsules will naturally lead investors to compare SodaStream to Green Mountain Coffee Roasters Inc. (NASDAQ:GMCR) with its K-Cups, again. It’s not a fair comparison to either company, especially given the seasonal variances in usage, but it’s probably not a bad thing for SodaStream to be hog-tied to the Keurig company now that Green Mountain’s shares have nearly tripled since bottoming out this past summer.

SodaStream is also testing supermarket distribution, and Campbell Soup Company (NYSE:CPB) will become the latest SodaStream partner after a licensing deal that will see V8 Splash and V8 V-Fusion brands pop up as SodaStream flavors later this year.

The market has a lame history of missing the point after some of SodaStream’s blowout quarters. Drink up, Wall Street. Mr. Market has it wrong again.

The article SodaStream Should Be Soaring Right Now originally appeared on Fool.com and is written by Rick Aristotle Munarriz.

Longtime Fool contributor Rick Aristotle Munarriz owns shares of Green Mountain Coffee Roasters and SodaStream. The Motley Fool recommends Coca-Cola, Green Mountain Coffee Roasters, PepsiCo, and SodaStream. The Motley Fool owns shares of PepsiCo and SodaStream.

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