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PepsiCo (PEP) Advances While Market Declines: Some Information for Investors

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In the latest trading session, PepsiCo (PEP - Free Report) closed at $175.97, marking a +0.06% move from the previous day. The stock exceeded the S&P 500, which registered a loss of 0.32% for the day. Meanwhile, the Dow experienced a rise of 0.16%, and the technology-dominated Nasdaq saw a decrease of 0.85%.

Shares of the food and beverage company have appreciated by 1.81% over the course of the past month, underperforming the Consumer Staples sector's gain of 5.16% and outperforming the S&P 500's gain of 1.52%.

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. Our most recent consensus estimate is calling for quarterly revenue of $23.99 billion, up 2.3% from the year-ago period.

For the full year, the Zacks Consensus Estimates project earnings of $8.15 per share and a revenue of $93.85 billion, demonstrating changes of +6.96% and +2.6%, respectively, from the preceding year.

Additionally, investors should keep an eye on any recent revisions to analyst forecasts for PepsiCo. These revisions typically reflect the latest short-term business trends, which can change frequently. Therefore, positive revisions in estimates convey analysts' confidence in the company's business performance and profit potential.

Our research demonstrates that these adjustments in estimates directly associate with imminent stock price performance. To capitalize on this, we've crafted the Zacks Rank, a unique model that incorporates these estimate changes and offers a practical rating system.

The Zacks Rank system, which varies between #1 (Strong Buy) and #5 (Strong Sell), carries an impressive track record of exceeding expectations, confirmed by external audits, with stocks at #1 delivering an average annual return of +25% since 1988. Over the last 30 days, the Zacks Consensus EPS estimate has remained unchanged. At present, PepsiCo boasts a Zacks Rank of #4 (Sell).

In the context of valuation, PepsiCo is at present trading with a Forward P/E ratio of 21.58. This signifies a premium in comparison to the average Forward P/E of 19.19 for its industry.

We can additionally observe that PEP currently boasts a PEG ratio of 3.04. The PEG ratio is akin to the commonly utilized P/E ratio, but this measure also incorporates the company's anticipated earnings growth rate. PEP's industry had an average PEG ratio of 2.87 as of yesterday's close.

The Beverages - Soft drinks industry is part of the Consumer Staples sector. With its current Zacks Industry Rank of 204, this industry ranks in the bottom 20% of all industries, numbering over 250.

The Zacks Industry Rank evaluates the power of our distinct industry groups by determining the average Zacks Rank of the individual stocks forming the groups. Our research shows that the top 50% rated industries outperform the bottom half by a factor of 2 to 1.

Keep in mind to rely on Zacks.com to watch all these stock-impacting metrics, and more, in the succeeding trading sessions.


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