PepsiCo (PEP) closed at $136.06 in the latest trading session, marking a +1.18% move from the prior day. This change outpaced the S&P 500's 0.28% gain on the day. At the same time, the Dow added 0.43%, and the tech-heavy Nasdaq gained 0.09%.
The stock of food and beverage company has risen by 3.53% in the past month, leading the Consumer Staples sector's loss of 1.44% and undershooting the S&P 500's gain of 4.37%.
Analysts and investors alike will be keeping a close eye on the performance of PepsiCo in its upcoming earnings disclosure. The company's earnings report is set to go public on July 17, 2025. The company is expected to report EPS of $2.04, down 10.53% from the prior-year quarter. Alongside, our most recent consensus estimate is anticipating revenue of $22.39 billion, indicating a 0.5% downward movement from the same quarter last year.
Regarding the entire year, the Zacks Consensus Estimates forecast earnings of $7.87 per share and revenue of $92.33 billion, indicating changes of -3.55% and +0.51%, respectively, compared to the previous year.
Investors might also notice recent changes to analyst estimates for PepsiCo. These recent revisions tend to reflect the evolving nature of short-term business trends. Consequently, upward revisions in estimates express analysts' positivity towards the business operations and its ability to generate profits.
Our research reveals that these estimate alterations are directly linked with the stock price performance in the near future. To take advantage of this, we've established the Zacks Rank, an exclusive model that considers these estimated changes and delivers an operational rating system.
The Zacks Rank system, which ranges from #1 (Strong Buy) to #5 (Strong Sell), has an impressive outside-audited track record of outperformance, with #1 stocks generating an average annual return of +25% since 1988. The Zacks Consensus EPS estimate has moved 0.06% lower within the past month. At present, PepsiCo boasts a Zacks Rank of #4 (Sell).
In terms of valuation, PepsiCo is currently trading at a Forward P/E ratio of 17.09. This denotes a discount relative to the industry average Forward P/E of 18.83.
We can additionally observe that PEP currently boasts a PEG ratio of 4.21. Comparable to the widely accepted P/E ratio, the PEG ratio also accounts for the company's projected earnings growth. As of the close of trade yesterday, the Beverages - Soft drinks industry held an average PEG ratio of 2.59.
The Beverages - Soft drinks industry is part of the Consumer Staples sector. This industry, currently bearing a Zacks Industry Rank of 65, finds itself in the top 27% echelons of all 250+ industries.
The Zacks Industry Rank assesses the strength of our separate industry groups by calculating the average Zacks Rank of the individual stocks contained within the groups. Our research shows that the top 50% rated industries outperform the bottom half by a factor of 2 to 1.
Make sure to utilize Zacks.com to follow all of these stock-moving metrics, and more, in the coming trading sessions.
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PepsiCo, Inc. (PEP): Free Stock Analysis ReportThis article originally published on Zacks Investment Research (zacks.com).
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