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PepsiCo (PEP) Stock Sinks As Market Gains: What You Should Know
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PepsiCo (PEP - Free Report) closed the most recent trading day at $169.57, moving -1.71% from the previous trading session. This change lagged the S&P 500's daily gain of 0.02%. Elsewhere, the Dow lost 0.2%, while the tech-heavy Nasdaq added 0.22%.
Heading into today, shares of the food and beverage company had lost 4.65% over the past month, outpacing the Consumer Staples sector's loss of 4.83% and lagging the S&P 500's loss of 2.86% in that time.
PepsiCo will be looking to display strength as it nears its next earnings release, which is expected to be October 10, 2023. In that report, analysts expect PepsiCo to post earnings of $2.18 per share. This would mark year-over-year growth of 10.66%. Meanwhile, the Zacks Consensus Estimate for revenue is projecting net sales of $23.42 billion, up 6.59% from the year-ago period.
PEP's full-year Zacks Consensus Estimates are calling for earnings of $7.48 per share and revenue of $92.16 billion. These results would represent year-over-year changes of +10.16% and +6.67%, respectively.
Investors might also notice recent changes to analyst estimates for PepsiCo. These revisions typically reflect the latest short-term business trends, which can change frequently. With this in mind, we can consider positive estimate revisions a sign of optimism about 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, 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 remained stagnant. PepsiCo is currently sporting a Zacks Rank of #3 (Hold).
Digging into valuation, PepsiCo currently has a Forward P/E ratio of 23.05. This represents a premium compared to its industry's average Forward P/E of 20.68.
Meanwhile, PEP's PEG ratio is currently 2.83. 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 industry currently had an average PEG ratio of 2.42 as of yesterday's close.
The Beverages - Soft drinks industry is part of the Consumer Staples sector. This industry currently has a Zacks Industry Rank of 38, which puts it in the top 16% 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.
Make sure to utilize Zacks.com to follow all of these stock-moving metrics, and more, in the coming trading sessions.
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PepsiCo (PEP) Stock Sinks As Market Gains: What You Should Know
PepsiCo (PEP - Free Report) closed the most recent trading day at $169.57, moving -1.71% from the previous trading session. This change lagged the S&P 500's daily gain of 0.02%. Elsewhere, the Dow lost 0.2%, while the tech-heavy Nasdaq added 0.22%.
Heading into today, shares of the food and beverage company had lost 4.65% over the past month, outpacing the Consumer Staples sector's loss of 4.83% and lagging the S&P 500's loss of 2.86% in that time.
PepsiCo will be looking to display strength as it nears its next earnings release, which is expected to be October 10, 2023. In that report, analysts expect PepsiCo to post earnings of $2.18 per share. This would mark year-over-year growth of 10.66%. Meanwhile, the Zacks Consensus Estimate for revenue is projecting net sales of $23.42 billion, up 6.59% from the year-ago period.
PEP's full-year Zacks Consensus Estimates are calling for earnings of $7.48 per share and revenue of $92.16 billion. These results would represent year-over-year changes of +10.16% and +6.67%, respectively.
Investors might also notice recent changes to analyst estimates for PepsiCo. These revisions typically reflect the latest short-term business trends, which can change frequently. With this in mind, we can consider positive estimate revisions a sign of optimism about 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, 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 remained stagnant. PepsiCo is currently sporting a Zacks Rank of #3 (Hold).
Digging into valuation, PepsiCo currently has a Forward P/E ratio of 23.05. This represents a premium compared to its industry's average Forward P/E of 20.68.
Meanwhile, PEP's PEG ratio is currently 2.83. 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 industry currently had an average PEG ratio of 2.42 as of yesterday's close.
The Beverages - Soft drinks industry is part of the Consumer Staples sector. This industry currently has a Zacks Industry Rank of 38, which puts it in the top 16% 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.
Make sure to utilize Zacks.com to follow all of these stock-moving metrics, and more, in the coming trading sessions.