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PepsiCo (PEP) Stock Moves -1.1%: What You Should Know

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PepsiCo (PEP - Free Report) ended the recent trading session at $154.43, demonstrating a -1.1% swing from the preceding day's closing price. The stock's change was more than the S&P 500's daily loss of 2.95%. Meanwhile, the Dow lost 2.59%, and the Nasdaq, a tech-heavy index, lost 3.56%.

Coming into today, shares of the food and beverage company had lost 0.37% in the past month. In that same time, the Consumer Staples sector gained 0.72%, while the S&P 500 gained 3.15%.

Market participants will be closely following the financial results of PepsiCo in its upcoming release. The company plans to announce its earnings on February 4, 2025. The company's upcoming EPS is projected at $1.95, signifying a 9.55% increase compared to the same quarter of the previous year. Meanwhile, our latest consensus estimate is calling for revenue of $28.08 billion, up 0.82% from the prior-year quarter.

Regarding the entire year, the Zacks Consensus Estimates forecast earnings of $8.15 per share and revenue of $92.15 billion, indicating changes of +6.96% and +0.74%, respectively, compared to the previous year.

Any recent changes to analyst estimates for PepsiCo should also be noted by investors. These revisions help to show the ever-changing nature of near-term business trends. Hence, positive alterations in estimates signify analyst optimism regarding the company's business and profitability.

Research indicates that these estimate revisions are directly correlated with near-term share price momentum. 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 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 #4 (Sell).

With respect to valuation, PepsiCo is currently being traded at a Forward P/E ratio of 19.16. This valuation marks a premium compared to its industry's average Forward P/E of 18.66.

It's also important to note that PEP currently trades at a PEG ratio of 2.97. This metric is used similarly to the famous P/E ratio, but the PEG ratio also takes into account the stock's expected earnings growth rate. As of the close of trade yesterday, the Beverages - Soft drinks industry held an average PEG ratio of 2.64.

The Beverages - Soft drinks industry is part of the Consumer Staples sector. This group has a Zacks Industry Rank of 163, putting it in the bottom 36% of all 250+ industries.

The strength of our individual industry groups is measured by the Zacks Industry Rank, which is calculated based on the average Zacks Rank of the individual stocks within these 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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