PepsiCo (PEP) closed at $144.42 in the latest trading session, marking a -1.58% move from the prior day. The stock's change was less than the S&P 500's daily gain of 0.55%. Elsewhere, the Dow gained 0.63%, while the tech-heavy Nasdaq added 0.91%.
Coming into today, shares of the food and beverage company had gained 2.09% in the past month. In that same time, the Consumer Staples sector gained 2.61%, while the S&P 500 gained 0.71%.
Market participants will be closely following the financial results of PepsiCo in its upcoming release. The company's upcoming EPS is projected at $2.24, signifying a 14.29% increase compared to the same quarter of the previous year. Alongside, our most recent consensus estimate is anticipating revenue of $29.02 billion, indicating a 4.44% upward movement from the same quarter last year.
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.
Any recent changes to analyst estimates for PepsiCo should also be noted by investors. These revisions help to show the ever-changing nature of near-term business trends. As a result, we can interpret positive estimate revisions as a good sign for the business outlook.
Our research shows that these estimate changes are directly correlated with near-term stock prices. To exploit this, we've formed the Zacks Rank, a quantitative model that includes these estimate changes and presents a viable 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. The Zacks Consensus EPS estimate remained stagnant within the past month. As of now, PepsiCo holds a Zacks Rank of #4 (Sell).
In terms of valuation, PepsiCo is presently being traded at a Forward P/E ratio of 17.16. For comparison, its industry has an average Forward P/E of 17.14, which means PepsiCo is trading at a premium to the group.
Also, we should mention that PEP has a PEG ratio of 4.81. This popular metric is similar to the widely-known P/E ratio, with the difference being that the PEG ratio also takes into account the company's expected earnings growth rate. The Beverages - Soft drinks industry had an average PEG ratio of 2.13 as trading concluded yesterday.
The Beverages - Soft drinks industry is part of the Consumer Staples sector. This industry, currently bearing a Zacks Industry Rank of 206, finds itself in the bottom 16% echelons of all 250+ industries.
The strength of our individual industry groups is measured by the Zacks Industry Rank, which is calculated based on the average Zacks Rank of the individual stocks within these groups. Our research shows that the top 50% rated industries outperform the bottom half by a factor of 2 to 1.
You can find more information on all of these metrics, and much more, on Zacks.com.
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PepsiCo, Inc. (PEP): Free Stock Analysis ReportThis article originally published on Zacks Investment Research (zacks.com).
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