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PepsiCo (PEP) Dips More Than Broader Markets: What You Should Know
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PepsiCo (PEP - Free Report) closed the most recent trading day at $162.56, moving -0.14% from the previous trading session. This change lagged the S&P 500's daily loss of 0.04%. Meanwhile, the Dow lost 0.58%, and the Nasdaq, a tech-heavy index, lost 0.18%.
Prior to today's trading, shares of the food and beverage company had lost 2.93% over the past month. This has was narrower than the Consumer Staples sector's loss of 4.17% and lagged the S&P 500's gain of 2.67% in that time.
PepsiCo will be looking to display strength as it nears its next earnings release, which is expected to be April 26, 2022. On that day, PepsiCo is projected to report earnings of $1.25 per share, which would represent year-over-year growth of 3.31%. Our most recent consensus estimate is calling for quarterly revenue of $15.63 billion, up 5.49% from the year-ago period.
PEP's full-year Zacks Consensus Estimates are calling for earnings of $6.69 per share and revenue of $82.48 billion. These results would represent year-over-year changes of +6.87% and +3.78%, respectively.
Any recent changes to analyst estimates for PepsiCo should also be noted by investors. These recent revisions tend to reflect the evolving nature of short-term business trends. As such, positive estimate revisions reflect analyst optimism about the company's business and profitability.
Our research shows that these estimate changes are directly correlated with near-term stock prices. 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, which ranges from #1 (Strong Buy) to #5 (Strong Sell), has an impressive outside-audited track record of outperformance, with #1 stocks generating an average annual return of +25% since 1988. Over the past month, the Zacks Consensus EPS estimate has moved 0.3% lower. PepsiCo is currently sporting a Zacks Rank of #3 (Hold).
Digging into valuation, PepsiCo currently has a Forward P/E ratio of 24.34. Its industry sports an average Forward P/E of 23.38, so we one might conclude that PepsiCo is trading at a premium comparatively.
Investors should also note that PEP has a PEG ratio of 3.21 right now. 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. Beverages - Soft drinks stocks are, on average, holding a PEG ratio of 2.62 based on yesterday's closing prices.
The Beverages - Soft drinks industry is part of the Consumer Staples sector. This industry currently has a Zacks Industry Rank of 168, which puts it in the bottom 34% of all 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 follow all of these stock-moving metrics, and many more, on Zacks.com.
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PepsiCo (PEP) Dips More Than Broader Markets: What You Should Know
PepsiCo (PEP - Free Report) closed the most recent trading day at $162.56, moving -0.14% from the previous trading session. This change lagged the S&P 500's daily loss of 0.04%. Meanwhile, the Dow lost 0.58%, and the Nasdaq, a tech-heavy index, lost 0.18%.
Prior to today's trading, shares of the food and beverage company had lost 2.93% over the past month. This has was narrower than the Consumer Staples sector's loss of 4.17% and lagged the S&P 500's gain of 2.67% in that time.
PepsiCo will be looking to display strength as it nears its next earnings release, which is expected to be April 26, 2022. On that day, PepsiCo is projected to report earnings of $1.25 per share, which would represent year-over-year growth of 3.31%. Our most recent consensus estimate is calling for quarterly revenue of $15.63 billion, up 5.49% from the year-ago period.
PEP's full-year Zacks Consensus Estimates are calling for earnings of $6.69 per share and revenue of $82.48 billion. These results would represent year-over-year changes of +6.87% and +3.78%, respectively.
Any recent changes to analyst estimates for PepsiCo should also be noted by investors. These recent revisions tend to reflect the evolving nature of short-term business trends. As such, positive estimate revisions reflect analyst optimism about the company's business and profitability.
Our research shows that these estimate changes are directly correlated with near-term stock prices. 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, which ranges from #1 (Strong Buy) to #5 (Strong Sell), has an impressive outside-audited track record of outperformance, with #1 stocks generating an average annual return of +25% since 1988. Over the past month, the Zacks Consensus EPS estimate has moved 0.3% lower. PepsiCo is currently sporting a Zacks Rank of #3 (Hold).
Digging into valuation, PepsiCo currently has a Forward P/E ratio of 24.34. Its industry sports an average Forward P/E of 23.38, so we one might conclude that PepsiCo is trading at a premium comparatively.
Investors should also note that PEP has a PEG ratio of 3.21 right now. 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. Beverages - Soft drinks stocks are, on average, holding a PEG ratio of 2.62 based on yesterday's closing prices.
The Beverages - Soft drinks industry is part of the Consumer Staples sector. This industry currently has a Zacks Industry Rank of 168, which puts it in the bottom 34% of all 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 follow all of these stock-moving metrics, and many more, on Zacks.com.