PepsiCo (PEP) ended the recent trading session at $130.67, demonstrating a -0.53% swing from the preceding day's closing price. The stock outperformed the S&P 500, which registered a daily loss of 0.56%. Meanwhile, the Dow experienced a drop of 0.58%, and the technology-dominated Nasdaq saw a decrease of 0.51%.
The food and beverage company's stock has dropped by 2.19% in the past month, falling short of the Consumer Staples sector's gain of 1.67% and the S&P 500's gain of 7.37%.
Analysts and investors alike will be keeping a close eye on the performance of PepsiCo in its upcoming earnings disclosure. The company is expected to report EPS of $2.04, down 10.53% from the prior-year quarter. In the meantime, our current consensus estimate forecasts the revenue to be $22.37 billion, indicating a 0.6% decline compared to the corresponding quarter of the prior year.
Regarding the entire year, the Zacks Consensus Estimates forecast earnings of $7.87 per share and revenue of $92.2 billion, indicating changes of -3.55% and +0.38%, respectively, compared to the previous year.
Investors should also take note of any recent adjustments 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 company's business performance and profit potential.
Our research reveals that these estimate alterations are directly linked with the stock price performance in the near future. We developed the Zacks Rank to capitalize on this phenomenon. Our system takes these estimate changes into account and delivers a clear, actionable rating model.
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. Over the last 30 days, the Zacks Consensus EPS estimate has witnessed a 0.39% decrease. As of now, PepsiCo holds a Zacks Rank of #4 (Sell).
Investors should also note PepsiCo's current valuation metrics, including its Forward P/E ratio of 16.69. This indicates a discount in contrast to its industry's Forward P/E of 20.36.
Investors should also note that PEP has a PEG ratio of 3.77 right now. 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 average PEG ratio for the Beverages - Soft drinks industry stood at 2.55 at the close of the market yesterday.
The Beverages - Soft drinks industry is part of the Consumer Staples sector. This industry currently has a Zacks Industry Rank of 57, which puts it in the top 24% 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.
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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