In the latest trading session, PepsiCo (PEP) closed at $141.72, marking a -3.19% move from the previous day. The stock trailed the S&P 500, which registered a daily gain of 0.21%. Elsewhere, the Dow gained 0.25%, while the tech-heavy Nasdaq added 0.45%.
Prior to today's trading, shares of the food and beverage company had gained 0.81% lagged the Consumer Staples sector's gain of 1.33% and the S&P 500's gain of 3.07%.
The upcoming earnings release of PepsiCo will be of great interest to investors. The company's earnings report is expected on October 9, 2025. The company's earnings per share (EPS) are projected to be $2.26, reflecting a 2.16% decrease from the same quarter last year. Meanwhile, our latest consensus estimate is calling for revenue of $23.79 billion, up 2% from the prior-year quarter.
PEP's full-year Zacks Consensus Estimates are calling for earnings of $8.03 per share and revenue of $93.06 billion. These results would represent year-over-year changes of -1.59% and +1.31%, respectively.
Investors might also notice recent changes to analyst estimates for PepsiCo. Recent revisions tend to reflect the latest near-term business trends. As such, positive estimate revisions reflect analyst optimism about the business and profitability.
Empirical research indicates that these revisions in estimates have a direct correlation with impending 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, running from #1 (Strong Buy) to #5 (Strong Sell), holds an admirable track record of superior performance, independently audited, with #1 stocks contributing an average annual return of +25% since 1988. Over the last 30 days, the Zacks Consensus EPS estimate has moved 0.12% higher. PepsiCo is holding a Zacks Rank of #2 (Buy) right now.
Investors should also note PepsiCo's current valuation metrics, including its Forward P/E ratio of 18.23. This valuation marks a premium compared to its industry average Forward P/E of 18.01.
Also, we should mention that PEP has a PEG ratio of 3.7. This metric is used similarly to the famous P/E ratio, but the PEG ratio also takes into account the stock's expected earnings growth rate. As the market closed yesterday, the Beverages - Soft drinks industry was having an average PEG ratio of 2.17.
The Beverages - Soft drinks industry is part of the Consumer Staples sector. At present, this industry carries a Zacks Industry Rank of 187, placing it within the bottom 25% of over 250 industries.
The Zacks Industry Rank evaluates the power of our distinct industry groups by determining the average Zacks Rank of the individual stocks forming the groups. Our research shows that the top 50% rated industries outperform the bottom half by a factor of 2 to 1.
Remember to apply Zacks.com to follow these and more stock-moving metrics during the upcoming 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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