Based on the information available, which company would you expect to have the best potential for future common stock price appreciation?

CaterpillarAlphabetPepsiCo

has the largest dividend yield and strong earnings per share but has the lowest price$-$earnings ratio. Stock market participants seem to be skeptical about

CaterpillarAlphabetPepsiCo

$$s future prospects and are discounting its stock price despite its relatively solid performance.

CaterpillarAlphabetPepsiCo

pays no dividend and, thus, has no dividend yield. However,

CaterpillarAlphabetPepsiCo

has the largest price$-$earnings ratio. Stock market participants are expecting a strong return on their investment from appreciation in

CaterpillarAlphabetPepsiCo

$$s stock price.

CaterpillarAlphabetPepsiCo

has the second highest price$-$earnings ratio but a lower dividend yield and earnings per share than

CaterpillarAlphabetPepsiCo

$.$ This suggests that the market expects

CaterpillarAlphabetPepsiCo

$$s combination of earnings and dividends to improve in the coming years.