PepsiCo (PEP) closed at $148.65 in the latest trading session, marking a +1.14% move from the prior day. The stock outpaced the S&P 500's daily loss of 0.64%. Meanwhile, the Dow experienced a drop of 0.2%, and the technology-dominated Nasdaq saw a decrease of 1.15%.
Shares of the food and beverage company have appreciated by 6.57% over the course of the past month, outperforming the Consumer Staples sector's gain of 0.59%, and the S&P 500's gain of 1.91%.
Investors will be eagerly watching for the performance of PepsiCo in its upcoming earnings disclosure. The company's earnings report is set to be unveiled on October 9, 2025. The company is predicted to post an EPS of $2.27, indicating a 1.73% decline compared to the equivalent quarter last year. Alongside, our most recent consensus estimate is anticipating revenue of $23.79 billion, indicating a 2% upward movement from the same quarter last year.
PEP's full-year Zacks Consensus Estimates are calling for earnings of $8.01 per share and revenue of $93.06 billion. These results would represent year-over-year changes of -1.84% and +1.31%, respectively.
Any recent changes to analyst estimates for PepsiCo should also be noted by investors. These latest adjustments often mirror the shifting dynamics of short-term business patterns. Therefore, positive revisions in estimates convey analysts' confidence in the business performance and profit potential.
Our research demonstrates that these adjustments in estimates directly associate with imminent stock price performance. 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, spanning from #1 (Strong Buy) to #5 (Strong Sell), boasts an impressive track record of outperformance, audited externally, with #1 ranked stocks yielding an average annual return of +25% since 1988. Over the past month, the Zacks Consensus EPS estimate has shifted 0% upward. PepsiCo is currently a Zacks Rank #3 (Hold).
In terms of valuation, PepsiCo is presently being traded at a Forward P/E ratio of 18.35. This expresses a premium compared to the average Forward P/E of 18.06 of its industry.
It's also important to note that PEP currently trades at a PEG ratio of 3.92. The PEG ratio is similar to the widely-used P/E ratio, but this metric also takes the company's expected earnings growth rate into account. The Beverages - Soft drinks industry had an average PEG ratio of 2.03 as trading concluded yesterday.
The Beverages - Soft drinks industry is part of the Consumer Staples sector. With its current Zacks Industry Rank of 172, this industry ranks in the bottom 31% of all industries, numbering over 250.
The Zacks Industry Rank gauges the strength of our industry groups by measuring the average Zacks Rank of the individual stocks within the groups. Our research shows that the top 50% rated industries outperform the bottom half by a factor of 2 to 1.
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PepsiCo, Inc. (PEP): Free Stock Analysis ReportThis article originally published on Zacks Investment Research (zacks.com).
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