In the latest market close, PepsiCo (PEP) reached $130.12, with a -0.02% movement compared to the previous day. This change was narrower than the S&P 500's daily loss of 0.04%.
Prior to today's trading, shares of the food and beverage company had lost 8.51% over the past month. This has lagged the Consumer Staples sector's gain of 0.56% and the S&P 500's gain of 13.42% in that time.
Investors will be eagerly watching for the performance of PepsiCo in its upcoming earnings disclosure. In that report, analysts expect PepsiCo to post earnings of $2.04 per share. This would mark a year-over-year decline of 10.53%. Simultaneously, our latest consensus estimate expects the revenue to be $22.37 billion, showing a 0.6% drop compared to the year-ago quarter.
For the annual period, the Zacks Consensus Estimates anticipate earnings of $7.87 per share and a revenue of $92.2 billion, signifying shifts of -3.55% and +0.38%, respectively, from the last year.
Additionally, investors should keep an eye on any recent revisions to analyst forecasts for PepsiCo. These revisions help to show the ever-changing nature of near-term business trends. Consequently, upward revisions in estimates express analysts' positivity towards the company's business operations and its ability to generate profits.
Our research demonstrates that these adjustments in estimates directly associate with imminent 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.
The Zacks Rank system, stretching from #1 (Strong Buy) to #5 (Strong Sell), has a noteworthy track record of outperforming, validated by third-party audits, with stocks rated #1 producing an average annual return of +25% since the year 1988. Over the past month, there's been a 4.83% fall in the Zacks Consensus EPS estimate. Right now, PepsiCo possesses a Zacks Rank of #4 (Sell).
In the context of valuation, PepsiCo is at present trading with a Forward P/E ratio of 16.53. This expresses a discount compared to the average Forward P/E of 19.74 of its industry.
We can additionally observe that PEP currently boasts a PEG ratio of 3.74. 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 2.61.
The Beverages - Soft drinks industry is part of the Consumer Staples sector. This group has a Zacks Industry Rank of 45, putting it in the top 19% of all 250+ industries.
The Zacks Industry Rank assesses the vigor of our specific industry groups by computing the average Zacks Rank of the individual stocks incorporated in 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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