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Here's Why PepsiCo (PEP) Gained But Lagged the Market Today
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In the latest market close, PepsiCo (PEP - Free Report) reached $177.36, with a +0.06% movement compared to the previous day. The stock's performance was behind the S&P 500's daily gain of 0.54%. Elsewhere, the Dow saw an upswing of 0.72%, while the tech-heavy Nasdaq appreciated by 0.65%.
The food and beverage company's shares have seen an increase of 2.74% over the last month, not keeping up with the Consumer Staples sector's gain of 4.91% and the S&P 500's gain of 4.86%.
The investment community will be paying close attention to the earnings performance of PepsiCo in its upcoming release. The company is slated to reveal its earnings on October 8, 2024. The company is forecasted to report an EPS of $2.31, showcasing a 2.67% upward movement from the corresponding quarter of the prior year. Simultaneously, our latest consensus estimate expects the revenue to be $23.97 billion, showing a 2.22% escalation compared to the year-ago quarter.
For the entire fiscal year, the Zacks Consensus Estimates are projecting earnings of $8.15 per share and a revenue of $93.83 billion, representing changes of +6.96% and +2.58%, respectively, from the prior year.
Investors should also note any recent changes to 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.
Empirical research indicates that these revisions in estimates have a direct correlation with impending stock price performance. Investors can capitalize on this by using the Zacks Rank. This model considers these estimate changes and provides a simple, 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. Over the last 30 days, the Zacks Consensus EPS estimate has witnessed an unchanged state. PepsiCo presently features a Zacks Rank of #3 (Hold).
In terms of valuation, PepsiCo is presently being traded at a Forward P/E ratio of 21.75. This denotes a premium relative to the industry's average Forward P/E of 19.25.
Investors should also note that PEP has a PEG ratio of 3.06 right now. 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. The Beverages - Soft drinks industry currently had an average PEG ratio of 2.93 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 173, which puts it in the bottom 32% 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.
You can find more information on all of these metrics, and much more, on Zacks.com.
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Here's Why PepsiCo (PEP) Gained But Lagged the Market Today
In the latest market close, PepsiCo (PEP - Free Report) reached $177.36, with a +0.06% movement compared to the previous day. The stock's performance was behind the S&P 500's daily gain of 0.54%. Elsewhere, the Dow saw an upswing of 0.72%, while the tech-heavy Nasdaq appreciated by 0.65%.
The food and beverage company's shares have seen an increase of 2.74% over the last month, not keeping up with the Consumer Staples sector's gain of 4.91% and the S&P 500's gain of 4.86%.
The investment community will be paying close attention to the earnings performance of PepsiCo in its upcoming release. The company is slated to reveal its earnings on October 8, 2024. The company is forecasted to report an EPS of $2.31, showcasing a 2.67% upward movement from the corresponding quarter of the prior year. Simultaneously, our latest consensus estimate expects the revenue to be $23.97 billion, showing a 2.22% escalation compared to the year-ago quarter.
For the entire fiscal year, the Zacks Consensus Estimates are projecting earnings of $8.15 per share and a revenue of $93.83 billion, representing changes of +6.96% and +2.58%, respectively, from the prior year.
Investors should also note any recent changes to 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.
Empirical research indicates that these revisions in estimates have a direct correlation with impending stock price performance. Investors can capitalize on this by using the Zacks Rank. This model considers these estimate changes and provides a simple, 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. Over the last 30 days, the Zacks Consensus EPS estimate has witnessed an unchanged state. PepsiCo presently features a Zacks Rank of #3 (Hold).
In terms of valuation, PepsiCo is presently being traded at a Forward P/E ratio of 21.75. This denotes a premium relative to the industry's average Forward P/E of 19.25.
Investors should also note that PEP has a PEG ratio of 3.06 right now. 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. The Beverages - Soft drinks industry currently had an average PEG ratio of 2.93 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 173, which puts it in the bottom 32% 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.
You can find more information on all of these metrics, and much more, on Zacks.com.