We use cookies to understand how you use our site and to improve your experience. This includes personalizing content and advertising. To learn more, click here. By continuing to use our site, you accept our use of cookies, revised Privacy Policy and Terms of Service.
You are being directed to ZacksTrade, a division of LBMZ Securities and licensed broker-dealer. ZacksTrade and Zacks.com are separate companies. The web link between the two companies is not a solicitation or offer to invest in a particular security or type of security. ZacksTrade does not endorse or adopt any particular investment strategy, any analyst opinion/rating/report or any approach to evaluating individual securities.
If you wish to go to ZacksTrade, click OK. If you do not, click Cancel.
PepsiCo (PEP) Gains But Lags Market: What You Should Know
Read MoreHide Full Article
In the latest trading session, PepsiCo (PEP - Free Report) closed at $172.90, marking a +1.46% move from the previous day. This move lagged the S&P 500's daily gain of 1.61%. Elsewhere, the Dow gained 1.45%, while the tech-heavy Nasdaq added 0.36%.
Prior to today's trading, shares of the food and beverage company had gained 4.84% over the past month. This has outpaced the Consumer Staples sector's gain of 3.83% and the S&P 500's loss of 1.42% in that time.
Investors will be hoping for strength from PepsiCo as it approaches its next earnings release, which is expected to be April 26, 2022. In that report, analysts expect PepsiCo to post earnings of $1.24 per share. This would mark year-over-year growth of 2.48%. Meanwhile, our latest consensus estimate is calling for revenue of $15.58 billion, up 5.14% from the prior-year quarter.
For the full year, our Zacks Consensus Estimates are projecting earnings of $6.66 per share and revenue of $81.76 billion, which would represent changes of +6.39% and +2.87%, respectively, from the prior year.
It is also important to note the recent changes to analyst estimates for PepsiCo. These revisions help to show the ever-changing nature of near-term business trends. As a result, we can interpret positive estimate revisions as a good sign for the company's business outlook.
Based on our research, we believe these estimate revisions are directly related to near-team stock moves. 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 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. The Zacks Consensus EPS estimate has moved 0.51% lower within the past month. PepsiCo currently has a Zacks Rank of #3 (Hold).
Investors should also note PepsiCo's current valuation metrics, including its Forward P/E ratio of 25.59. For comparison, its industry has an average Forward P/E of 21.8, which means PepsiCo is trading at a premium to the group.
Meanwhile, PEP's PEG ratio is currently 3.38. The PEG ratio is similar to the widely-used P/E ratio, but this metric also takes the company's expected earnings growth rate into account. Beverages - Soft drinks stocks are, on average, holding a PEG ratio of 2.83 based on yesterday's closing prices.
The Beverages - Soft drinks industry is part of the Consumer Staples sector. This group has a Zacks Industry Rank of 191, putting it in the bottom 25% 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.
Make sure to utilize Zacks.com to follow all of these stock-moving metrics, and more, in the coming trading sessions.
See More Zacks Research for These Tickers
Normally $25 each - click below to receive one report FREE:
Image: Bigstock
PepsiCo (PEP) Gains But Lags Market: What You Should Know
In the latest trading session, PepsiCo (PEP - Free Report) closed at $172.90, marking a +1.46% move from the previous day. This move lagged the S&P 500's daily gain of 1.61%. Elsewhere, the Dow gained 1.45%, while the tech-heavy Nasdaq added 0.36%.
Prior to today's trading, shares of the food and beverage company had gained 4.84% over the past month. This has outpaced the Consumer Staples sector's gain of 3.83% and the S&P 500's loss of 1.42% in that time.
Investors will be hoping for strength from PepsiCo as it approaches its next earnings release, which is expected to be April 26, 2022. In that report, analysts expect PepsiCo to post earnings of $1.24 per share. This would mark year-over-year growth of 2.48%. Meanwhile, our latest consensus estimate is calling for revenue of $15.58 billion, up 5.14% from the prior-year quarter.
For the full year, our Zacks Consensus Estimates are projecting earnings of $6.66 per share and revenue of $81.76 billion, which would represent changes of +6.39% and +2.87%, respectively, from the prior year.
It is also important to note the recent changes to analyst estimates for PepsiCo. These revisions help to show the ever-changing nature of near-term business trends. As a result, we can interpret positive estimate revisions as a good sign for the company's business outlook.
Based on our research, we believe these estimate revisions are directly related to near-team stock moves. 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 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. The Zacks Consensus EPS estimate has moved 0.51% lower within the past month. PepsiCo currently has a Zacks Rank of #3 (Hold).
Investors should also note PepsiCo's current valuation metrics, including its Forward P/E ratio of 25.59. For comparison, its industry has an average Forward P/E of 21.8, which means PepsiCo is trading at a premium to the group.
Meanwhile, PEP's PEG ratio is currently 3.38. The PEG ratio is similar to the widely-used P/E ratio, but this metric also takes the company's expected earnings growth rate into account. Beverages - Soft drinks stocks are, on average, holding a PEG ratio of 2.83 based on yesterday's closing prices.
The Beverages - Soft drinks industry is part of the Consumer Staples sector. This group has a Zacks Industry Rank of 191, putting it in the bottom 25% 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.
Make sure to utilize Zacks.com to follow all of these stock-moving metrics, and more, in the coming trading sessions.