In the latest close session, PepsiCo (PEP) was up +1.04% at $141.36. This change outpaced the S&P 500's 0.16% gain on the day. Meanwhile, the Dow experienced a rise of 0.17%, and the technology-dominated Nasdaq saw an increase of 0.26%.
The food and beverage company's stock has dropped by 7.13% in the past month, falling short of the Consumer Staples sector's gain of 1.13% and the S&P 500's gain of 1.89%.
The investment community will be paying close attention to the earnings performance of PepsiCo in its upcoming release. On that day, PepsiCo is projected to report earnings of $2.24 per share, which would represent year-over-year growth of 14.29%. Meanwhile, our latest consensus estimate is calling for revenue of $29.02 billion, up 4.44% from the prior-year quarter.
For the annual period, the Zacks Consensus Estimates anticipate earnings of $8.12 per share and a revenue of $93.58 billion, signifying shifts of -0.49% and 0%, respectively, from the last year.
Investors should also note any recent changes to analyst estimates for PepsiCo. These revisions help to show the ever-changing nature of near-term business trends. As such, positive estimate revisions reflect analyst optimism about the business and profitability.
Our research shows that these estimate changes are directly correlated with near-term stock prices. To utilize this, we have created the Zacks Rank, a proprietary model that integrates these estimate changes and provides a functional rating system.
The Zacks Rank system, which varies between #1 (Strong Buy) and #5 (Strong Sell), carries an impressive track record of exceeding expectations, confirmed by external audits, with stocks at #1 delivering an average annual return of +25% since 1988. Within the past 30 days, our consensus EPS projection has moved 0.16% lower. As of now, PepsiCo holds a Zacks Rank of #3 (Hold).
Looking at its valuation, PepsiCo is holding a Forward P/E ratio of 16.36. Its industry sports an average Forward P/E of 16.7, so one might conclude that PepsiCo is trading at a discount comparatively.
It's also important to note that PEP currently trades at a PEG ratio of 4.58. The PEG ratio is akin to the commonly utilized P/E ratio, but this measure also incorporates the company's anticipated earnings growth rate. As of the close of trade yesterday, the Beverages - Soft drinks industry held an average PEG ratio of 2.02.
The Beverages - Soft drinks industry is part of the Consumer Staples sector. With its current Zacks Industry Rank of 194, this industry ranks in the bottom 21% 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.
Ensure to harness Zacks.com to stay updated with all these stock-shifting metrics, among others, in the next 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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