In the latest close session, PepsiCo (PEP) was up +1.52% at $131.05. The stock's performance was ahead of the S&P 500's daily gain of 1.11%. Meanwhile, the Dow experienced a rise of 1.19%, and the technology-dominated Nasdaq saw an increase of 1.43%.
The food and beverage company's shares have seen a decrease of 0.19% over the last month, aligning with the Consumer Staples sector and falling behind the S&P 500's gain of 3.92%.
Market participants will be closely following the financial results of PepsiCo in its upcoming release. The company plans to announce its earnings on July 17, 2025. The company is forecasted to report an EPS of $2.04, showcasing a 10.53% downward movement from the corresponding quarter of the prior year. 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.
Looking at the full year, the Zacks Consensus Estimates suggest analysts are expecting earnings of $7.87 per share and revenue of $92.2 billion. These totals would mark changes of -3.55% and +0.38%, respectively, from last year.
It's also important for investors to be aware of any recent modifications to analyst estimates for PepsiCo. These revisions typically reflect the latest short-term business trends, which can change frequently. As a result, upbeat changes in estimates indicate analysts' favorable outlook on the business health and profitability.
Our research demonstrates that these adjustments in estimates directly associate with imminent stock price performance. 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 ranges from #1 (Strong Buy) to #5 (Strong Sell). It has a remarkable, outside-audited track record of success, with #1 stocks delivering an average annual return of +25% since 1988. Over the last 30 days, the Zacks Consensus EPS estimate has remained unchanged. PepsiCo currently has a Zacks Rank of #4 (Sell).
With respect to valuation, PepsiCo is currently being traded at a Forward P/E ratio of 16.4. This indicates a discount in contrast to its industry's Forward P/E of 19.26.
It's also important to note that PEP currently trades at a PEG ratio of 3.71. Comparable to the widely accepted P/E ratio, the PEG ratio also accounts for the company's projected earnings growth. As the market closed yesterday, the Beverages - Soft drinks industry was having an average PEG ratio of 2.58.
The Beverages - Soft drinks industry is part of the Consumer Staples sector. This industry currently has a Zacks Industry Rank of 96, which puts it in the top 40% of all 250+ industries.
The Zacks Industry Rank gauges the strength of our individual 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.
Don't forget to use Zacks.com to keep track of all these stock-moving metrics, and others, in the upcoming 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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