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PepsiCo (PEP - Free Report) closed the most recent trading day at $173.71, moving +0.78% from the previous trading session. This change outpaced the S&P 500's 0.38% gain on the day. Meanwhile, the Dow gained 0.61%, and the Nasdaq, a tech-heavy index, added 0.03%.
Coming into today, shares of the food and beverage company had gained 4.62% in the past month. In that same time, the Consumer Staples sector gained 2.74%, while the S&P 500 lost 3.2%.
The investment community will be paying close attention to the earnings performance of PepsiCo in its upcoming release. It is anticipated that the company will report an EPS of $2.31, marking a 2.67% rise compared to the same quarter of the previous year. Meanwhile, the latest consensus estimate predicts the revenue to be $23.99 billion, indicating a 2.3% increase compared to the same quarter of the previous year.
For the full year, the Zacks Consensus Estimates are projecting earnings of $8.15 per share and revenue of $93.85 billion, which would represent changes of +6.96% and +2.6%, respectively, from the prior year.
Furthermore, it would be beneficial for investors to monitor any recent shifts in analyst projections for PepsiCo. Recent revisions tend to reflect the latest near-term business trends. Therefore, positive revisions in estimates convey analysts' confidence in the company's business performance and profit potential.
Our research suggests that these changes in estimates have a direct relationship with upcoming stock price performance. To utilize this, we have created the Zacks Rank, a proprietary model that integrates these estimate changes and provides a functional 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. Over the last 30 days, the Zacks Consensus EPS estimate has moved 0.05% higher. As of now, PepsiCo holds a Zacks Rank of #4 (Sell).
Valuation is also important, so investors should note that PepsiCo has a Forward P/E ratio of 21.15 right now. This represents a premium compared to its industry's average Forward P/E of 18.93.
It's also important to note that PEP currently trades at a PEG ratio of 2.98. 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 average PEG ratio for the Beverages - Soft drinks industry stood at 2.81 at the close of the market yesterday.
The Beverages - Soft drinks industry is part of the Consumer Staples sector. Currently, this industry holds a Zacks Industry Rank of 195, positioning it in the bottom 23% 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.
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Why PepsiCo (PEP) Outpaced the Stock Market Today
PepsiCo (PEP - Free Report) closed the most recent trading day at $173.71, moving +0.78% from the previous trading session. This change outpaced the S&P 500's 0.38% gain on the day. Meanwhile, the Dow gained 0.61%, and the Nasdaq, a tech-heavy index, added 0.03%.
Coming into today, shares of the food and beverage company had gained 4.62% in the past month. In that same time, the Consumer Staples sector gained 2.74%, while the S&P 500 lost 3.2%.
The investment community will be paying close attention to the earnings performance of PepsiCo in its upcoming release. It is anticipated that the company will report an EPS of $2.31, marking a 2.67% rise compared to the same quarter of the previous year. Meanwhile, the latest consensus estimate predicts the revenue to be $23.99 billion, indicating a 2.3% increase compared to the same quarter of the previous year.
For the full year, the Zacks Consensus Estimates are projecting earnings of $8.15 per share and revenue of $93.85 billion, which would represent changes of +6.96% and +2.6%, respectively, from the prior year.
Furthermore, it would be beneficial for investors to monitor any recent shifts in analyst projections for PepsiCo. Recent revisions tend to reflect the latest near-term business trends. Therefore, positive revisions in estimates convey analysts' confidence in the company's business performance and profit potential.
Our research suggests that these changes in estimates have a direct relationship with upcoming stock price performance. To utilize this, we have created the Zacks Rank, a proprietary model that integrates these estimate changes and provides a functional 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. Over the last 30 days, the Zacks Consensus EPS estimate has moved 0.05% higher. As of now, PepsiCo holds a Zacks Rank of #4 (Sell).
Valuation is also important, so investors should note that PepsiCo has a Forward P/E ratio of 21.15 right now. This represents a premium compared to its industry's average Forward P/E of 18.93.
It's also important to note that PEP currently trades at a PEG ratio of 2.98. 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 average PEG ratio for the Beverages - Soft drinks industry stood at 2.81 at the close of the market yesterday.
The Beverages - Soft drinks industry is part of the Consumer Staples sector. Currently, this industry holds a Zacks Industry Rank of 195, positioning it in the bottom 23% 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.