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PepsiCo (PEP) Increases Despite Market Slip: Here's What You Need to Know

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In the latest market close, PepsiCo (PEP - Free Report) reached $178.52, with a +0.55% movement compared to the previous day. The stock's performance was ahead of the S&P 500's daily loss of 0.16%. Meanwhile, the Dow gained 0.09%, and the Nasdaq, a tech-heavy index, lost 0.3%.

Prior to today's trading, shares of the food and beverage company had gained 2.93% over the past month. This has lagged the Consumer Staples sector's gain of 2.98% and the S&P 500's gain of 3.64% in that time.

The upcoming earnings release of PepsiCo will be of great interest to investors. The company's earnings report is expected on October 8, 2024. On that day, PepsiCo is projected to report earnings of $2.31 per share, which would represent year-over-year growth of 2.67%. Alongside, our most recent consensus estimate is anticipating revenue of $23.97 billion, indicating a 2.22% upward movement from the same quarter last year.

Looking at the full year, the Zacks Consensus Estimates suggest analysts are expecting earnings of $8.15 per share and revenue of $93.83 billion. These totals would mark changes of +6.96% and +2.58%, respectively, from last year.

Investors should also pay attention to any latest changes in analyst estimates for PepsiCo. Such recent modifications usually signify the changing landscape of near-term business trends. As a result, we can interpret positive estimate revisions as a good sign for the company's business outlook.

Our research demonstrates that these adjustments in estimates directly associate with imminent stock price performance. To take advantage of this, we've established the Zacks Rank, an exclusive model that considers these estimated changes and delivers an operational 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 past month, there's been no change in the Zacks Consensus EPS estimate. PepsiCo is currently sporting a Zacks Rank of #3 (Hold).

With respect to valuation, PepsiCo is currently being traded at a Forward P/E ratio of 21.79. This indicates a premium in contrast to its industry's Forward P/E of 19.62.

Meanwhile, PEP's PEG ratio is currently 3.06. 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. By the end of yesterday's trading, the Beverages - Soft drinks industry had an average PEG ratio of 2.93.

The Beverages - Soft drinks industry is part of the Consumer Staples sector. With its current Zacks Industry Rank of 191, this industry ranks in the bottom 25% of all industries, numbering over 250.

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.

Be sure to use Zacks.com to monitor all these stock-influencing metrics, and more, throughout the forthcoming trading sessions.


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