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PepsiCo (PEP) Stock Moves -0.27%: What You Should Know

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In the latest market close, PepsiCo (PEP - Free Report) reached $149.27, with a -0.27% movement compared to the previous day. This change was narrower than the S&P 500's daily loss of 1.97%. Meanwhile, the Dow experienced a drop of 1.69%, and the technology-dominated Nasdaq saw a decrease of 2.7%.

The food and beverage company's stock has dropped by 1.55% in the past month, falling short of the Consumer Staples sector's gain of 1.27% and outpacing the S&P 500's loss of 2.79%.

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 April 24, 2025. The company is expected to report EPS of $1.52, down 5.59% from the prior-year quarter. In the meantime, our current consensus estimate forecasts the revenue to be $17.8 billion, indicating a 2.45% decline compared to the corresponding quarter of the prior year.

For the full year, the Zacks Consensus Estimates project earnings of $8.29 per share and a revenue of $91.79 billion, demonstrating changes of +1.59% and -0.07%, respectively, from the preceding year.

Investors should also pay attention to any latest changes in analyst estimates for PepsiCo. Recent revisions tend to reflect the latest near-term business trends. Consequently, upward revisions in estimates express analysts' positivity towards the company's business operations and its ability to generate profits.

Our research shows that these estimate changes are directly correlated with near-term stock prices. 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, the Zacks Consensus EPS estimate has moved 0.08% lower. At present, PepsiCo boasts a Zacks Rank of #4 (Sell).

Digging into valuation, PepsiCo currently has a Forward P/E ratio of 18.06. This expresses a discount compared to the average Forward P/E of 19.04 of its industry.

One should further note that PEP currently holds a PEG ratio of 3.15. Comparable to the widely accepted P/E ratio, the PEG ratio also accounts for the company's projected earnings growth. The Beverages - Soft drinks was holding an average PEG ratio of 2.64 at yesterday's closing price.

The Beverages - Soft drinks industry is part of the Consumer Staples sector. This group has a Zacks Industry Rank of 79, putting it in the top 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.

Be sure to follow all of these stock-moving metrics, and many more, on Zacks.com.


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