(PBG, $31)Rising commodity costs have taken the fizz out of Pepsi Bottling Group, the soft drink giant's largest distributor, with $13 billion in sales. The company, which was spun off from Pepsi in 1999, handles 55 percent of its domestic shipments. It has to buy things like sweetener and aluminum to make its products, and prices for some of these key materials have jumped. But Value Line analyst George Lee says CEO Eric Foss is taking steps to control these costs through improved hedging strategies. The company is expanding in fast-growing markets such as Mexico and Turkey. Furthermore, sales should get a boost in all its markets from the increased rollout of Pepsi's hot-selling noncarbonated beverages, such as water, tea and energy drinks. Reinhart's Jesko adds that high returns on capital and strong free cash flow will allow for further expansion and aggressive share repurchases. He believes the stock is 20 percent undervalued.