In the latest trading session, PepsiCo (PEP) closed at $131.83, marking a +1.44% move from the previous day. The stock exceeded the S&P 500, which registered a gain of 0.55% for the day. Meanwhile, the Dow gained 0.25%, and the Nasdaq, a tech-heavy index, added 0.63%.
Shares of the food and beverage company witnessed a loss of 1.31% over the previous month, trailing the performance of the Consumer Staples sector with its gain of 1.91% and the S&P 500's gain of 6.29%.
Investors will be eagerly watching for the performance of PepsiCo in its upcoming earnings disclosure. The company's earnings report is set to be unveiled on July 17, 2025. The company is expected to report EPS of $2.04, down 10.53% from the prior-year quarter. Alongside, our most recent consensus estimate is anticipating revenue of $22.37 billion, indicating a 0.6% downward movement from the same quarter last year.
For the entire fiscal year, the Zacks Consensus Estimates are projecting earnings of $7.87 per share and a revenue of $92.2 billion, representing changes of -3.55% and +0.38%, respectively, from the prior year.
Any recent changes to analyst estimates for PepsiCo should also be noted by investors. Recent revisions tend to reflect the latest near-term business trends. As a result, we can interpret positive estimate revisions as a good sign for the company's business outlook.
Our research shows that these estimate changes are directly correlated with near-term stock prices. Investors can capitalize on this by using the Zacks Rank. This model considers these estimate changes and provides a simple, actionable rating system.
The Zacks Rank system, ranging from #1 (Strong Buy) to #5 (Strong Sell), possesses a remarkable history of outdoing, externally audited, with #1 stocks returning an average annual gain of +25% since 1988. Over the last 30 days, the Zacks Consensus EPS estimate has moved 0.18% lower. PepsiCo is currently a Zacks Rank #4 (Sell).
With respect to valuation, PepsiCo is currently being traded at a Forward P/E ratio of 16.51. This expresses a discount compared to the average Forward P/E of 19.21 of its industry.
We can also see that PEP currently has a PEG ratio of 3.73. This metric is used similarly to the famous P/E ratio, but the PEG ratio also takes into account the stock's expected earnings growth rate. The Beverages - Soft drinks was holding an average PEG ratio of 2.56 at yesterday's closing price.
The Beverages - Soft drinks industry is part of the Consumer Staples sector. At present, this industry carries a Zacks Industry Rank of 45, placing it within the top 19% of over 250 industries.
The Zacks Industry Rank gauges the strength of our industry groups by measuring the average Zacks Rank of the individual stocks within 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 use Zacks.com to monitor all these stock-influencing metrics, and more, throughout the forthcoming 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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