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PepsiCo (PEP) Dips More Than Broader Markets: What You Should Know
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PepsiCo (PEP - Free Report) closed at $179.41 in the latest trading session, marking a -0.69% move from the prior day. This move lagged the S&P 500's daily loss of 0.4%. Elsewhere, the Dow lost 0.03%, while the tech-heavy Nasdaq lost 4.72%.
Coming into today, shares of the food and beverage company had lost 1.34% in the past month. In that same time, the Consumer Staples sector lost 2.84%, while the S&P 500 lost 5.57%.
PepsiCo will be looking to display strength as it nears its next earnings release, which is expected to be February 9, 2023. On that day, PepsiCo is projected to report earnings of $1.64 per share, which would represent year-over-year growth of 7.19%. Meanwhile, the Zacks Consensus Estimate for revenue is projecting net sales of $26.71 billion, up 5.78% from the year-ago period.
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 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.
Ranging from #1 (Strong Buy) to #5 (Strong Sell), the Zacks Rank system has a proven, outside-audited track record of outperformance, with #1 stocks returning an average of +25% annually since 1988. The Zacks Consensus EPS estimate has moved 0.09% higher within the past month. PepsiCo is currently a Zacks Rank #2 (Buy).
Valuation is also important, so investors should note that PepsiCo has a Forward P/E ratio of 26.74 right now. This represents a premium compared to its industry's average Forward P/E of 26.19.
It is also worth noting that PEP currently has a PEG ratio of 3.48. 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 Beverages - Soft drinks was holding an average PEG ratio of 3.18 at yesterday's closing price.
The Beverages - Soft drinks industry is part of the Consumer Staples sector. This industry currently has a Zacks Industry Rank of 40, which puts it in the top 16% 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.
To follow PEP in the coming trading sessions, be sure to utilize Zacks.com.
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PepsiCo (PEP) Dips More Than Broader Markets: What You Should Know
PepsiCo (PEP - Free Report) closed at $179.41 in the latest trading session, marking a -0.69% move from the prior day. This move lagged the S&P 500's daily loss of 0.4%. Elsewhere, the Dow lost 0.03%, while the tech-heavy Nasdaq lost 4.72%.
Coming into today, shares of the food and beverage company had lost 1.34% in the past month. In that same time, the Consumer Staples sector lost 2.84%, while the S&P 500 lost 5.57%.
PepsiCo will be looking to display strength as it nears its next earnings release, which is expected to be February 9, 2023. On that day, PepsiCo is projected to report earnings of $1.64 per share, which would represent year-over-year growth of 7.19%. Meanwhile, the Zacks Consensus Estimate for revenue is projecting net sales of $26.71 billion, up 5.78% from the year-ago period.
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 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.
Ranging from #1 (Strong Buy) to #5 (Strong Sell), the Zacks Rank system has a proven, outside-audited track record of outperformance, with #1 stocks returning an average of +25% annually since 1988. The Zacks Consensus EPS estimate has moved 0.09% higher within the past month. PepsiCo is currently a Zacks Rank #2 (Buy).
Valuation is also important, so investors should note that PepsiCo has a Forward P/E ratio of 26.74 right now. This represents a premium compared to its industry's average Forward P/E of 26.19.
It is also worth noting that PEP currently has a PEG ratio of 3.48. 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 Beverages - Soft drinks was holding an average PEG ratio of 3.18 at yesterday's closing price.
The Beverages - Soft drinks industry is part of the Consumer Staples sector. This industry currently has a Zacks Industry Rank of 40, which puts it in the top 16% 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.
To follow PEP in the coming trading sessions, be sure to utilize Zacks.com.