PepsiCo (PEP) closed at $169.74 in the latest trading session, marking a +1.29% move from the prior day. The stock's performance was ahead of the S&P 500's daily loss of 0.43%. At the same time, the Dow lost 1.05%, and the tech-heavy Nasdaq lost 0.92%.
Shares of the food and beverage company have appreciated by 12.7% over the course of the past month, outperforming the Consumer Staples sector's gain of 8.64%, and the S&P 500's loss of 0.5%.
Investors will be eagerly watching for the performance of PepsiCo in its upcoming earnings disclosure. The company is predicted to post an EPS of $1.55, indicating a 4.73% growth compared to the equivalent quarter last year. At the same time, our most recent consensus estimate is projecting a revenue of $18.93 billion, reflecting a 5.63% rise from the equivalent quarter last year.
For the full year, the Zacks Consensus Estimates are projecting earnings of $8.55 per share and revenue of $97.96 billion, which would represent changes of +5.04% and +4.29%, respectively, from the prior year.
Investors might also notice recent changes to analyst estimates for PepsiCo. These revisions typically reflect the latest short-term business trends, which can change frequently. Hence, positive alterations in estimates signify analyst optimism regarding the business and profitability.
Our research shows that these estimate changes are directly correlated with near-term stock prices. To benefit from this, we have developed the Zacks Rank, a proprietary model which takes these estimate changes into account and provides an actionable 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. Over the last 30 days, the Zacks Consensus EPS estimate has witnessed a 0.17% increase. PepsiCo currently has a Zacks Rank of #3 (Hold).
Looking at its valuation, PepsiCo is holding a Forward P/E ratio of 19.61. This represents a discount compared to its industry average Forward P/E of 20.55.
It is also worth noting that PEP currently has a PEG ratio of 3.22. 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 2.22 as trading concluded yesterday.
The Beverages - Soft drinks industry is part of the Consumer Staples sector. Currently, this industry holds a Zacks Industry Rank of 141, positioning it in the bottom 43% of all 250+ industries.
The Zacks Industry Rank is ordered from best to worst in terms of the average Zacks Rank of the individual companies within each of these sectors. Our research shows that the top 50% rated industries outperform the bottom half by a factor of 2 to 1.
Be sure to follow all of these stock-moving metrics, and many 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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