PepsiCo (PEP) closed the most recent trading day at $160.80, moving -1.9% from the previous trading session. This change lagged the S&P 500's 0.57% loss on the day. Meanwhile, the Dow experienced a drop of 1.61%, and the technology-dominated Nasdaq saw a decrease of 0.26%.
The food and beverage company's shares have seen a decrease of 1.36% over the last month, not keeping up with the Consumer Staples sector's loss of 0.16% and the S&P 500's loss of 0.15%.
Market participants will be closely following the financial results of PepsiCo in its upcoming release. The company's earnings per share (EPS) are projected to be $1.55, reflecting a 4.73% increase from the same quarter last year. Simultaneously, our latest consensus estimate expects the revenue to be $18.93 billion, showing a 5.63% escalation compared to the year-ago quarter.
Looking at the full year, the Zacks Consensus Estimates suggest analysts are expecting earnings of $8.55 per share and revenue of $97.96 billion. These totals would mark changes of +5.04% and +4.29%, respectively, from last year.
Investors might also notice recent changes to analyst estimates for PepsiCo. 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.
Empirical research indicates that these revisions in estimates have a direct correlation with impending stock price performance. 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.
Ranging from #1 (Strong Buy) to #5 (Strong Sell), the Zacks Rank system has a proven, outside-audited track record of outperformance, with #1 stocks returning an average of +25% annually since 1988. Over the last 30 days, the Zacks Consensus EPS estimate has witnessed a 0.17% increase. PepsiCo is currently a Zacks Rank #3 (Hold).
In terms of valuation, PepsiCo is presently being traded at a Forward P/E ratio of 19.18. This expresses a discount compared to the average Forward P/E of 19.96 of its industry.
It's also important to note that PEP currently trades at a PEG ratio of 3.15. 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. As the market closed yesterday, the Beverages - Soft drinks industry was having an average PEG ratio of 2.24.
The Beverages - Soft drinks industry is part of the Consumer Staples sector. At present, this industry carries a Zacks Industry Rank of 141, placing it within the bottom 43% 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.
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PepsiCo, Inc. (PEP): Free Stock Analysis ReportThis article originally published on Zacks Investment Research (zacks.com).
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