PepsiCo (PEP) Ascends But Remains Behind Market: Some Facts to Note
In the latest trading session, PepsiCo (PEP) closed at $173.57, marking a +0.49% move from the previous day. The stock's performance was behind the S&P 500's daily gain of 0.86%. Elsewhere, the Dow saw an upswing of 1.22%, while the tech-heavy Nasdaq appreciated by 0.51%.
Coming into today, shares of the food and beverage company had gained 2.72% in the past month. In that same time, the Consumer Staples sector gained 1.07%, while the S&P 500 gained 2.84%.
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 23, 2024. The company's upcoming EPS is projected at $1.52, signifying a 1.33% increase compared to the same quarter of the previous year. Meanwhile, the latest consensus estimate predicts the revenue to be $18.16 billion, indicating a 1.74% increase compared to the same quarter of the previous year.
For the full year, the Zacks Consensus Estimates are projecting earnings of $8.15 per share and revenue of $94.72 billion, which would represent changes of +6.96% and +3.55%, respectively, from the prior year.
Investors should also note any recent changes to analyst estimates for PepsiCo. Recent revisions tend to reflect the latest 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 shows that these estimate changes are directly correlated with near-term stock prices. 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 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 #3 (Hold).
Digging into valuation, PepsiCo currently has a Forward P/E ratio of 21.18. This represents no noticeable deviation compared to its industry's average Forward P/E of 21.18.
We can additionally observe that PEP currently boasts a PEG ratio of 2.7. This popular metric is similar to the widely-known P/E ratio, with the difference being that the PEG ratio also takes into account the company's expected earnings growth rate. Beverages - Soft drinks stocks are, on average, holding a PEG ratio of 2.31 based on yesterday's closing prices.
The Beverages - Soft drinks industry is part of the Consumer Staples sector. This group has a Zacks Industry Rank of 69, putting it in the top 28% 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.
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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PepsiCo, Inc. (PEP) : Free Stock Analysis Report
