PepsiCo (PEP) Beats Stock Market Upswing: What Investors Need to Know
PepsiCo (PEP) ended the recent trading session at $163, demonstrating a +0.59% swing from the preceding day's closing price. The stock's change was more than the S&P 500's daily gain of 0.51%. Meanwhile, the Dow gained 0.2%, and the Nasdaq, a tech-heavy index, added 0.58%.
Shares of the food and beverage company have depreciated by 5.47% over the course of the past month, underperforming the Consumer Staples sector's loss of 0.38% and the S&P 500's gain of 2.94%.
The investment community will be closely monitoring the performance of PepsiCo in its forthcoming earnings report. 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, our latest consensus estimate is calling for revenue of $18.18 billion, up 1.86% from the prior-year quarter.
PEP's full-year Zacks Consensus Estimates are calling for earnings of $8.15 per share and revenue of $94.65 billion. These results would represent year-over-year changes of +6.96% and +3.48%, respectively.
Investors might also notice recent changes to analyst estimates for PepsiCo. These recent revisions tend to reflect the evolving nature of short-term business trends. As a result, we can interpret positive estimate revisions as a good sign for the company's business outlook.
Research indicates that these estimate revisions are directly correlated with near-term share price momentum. To utilize this, we have created the Zacks Rank, a proprietary model that integrates these estimate changes and provides a functional rating system.
The Zacks Rank system, ranging from #1 (Strong Buy) to #5 (Strong Sell), possesses a remarkable history of outdoing, externally audited, with #1 stocks returning an average annual gain of +25% since 1988. Over the last 30 days, the Zacks Consensus EPS estimate has witnessed a 0.56% increase. PepsiCo is currently sporting a Zacks Rank of #3 (Hold).
Looking at its valuation, PepsiCo is holding a Forward P/E ratio of 19.87. For comparison, its industry has an average Forward P/E of 18.24, which means PepsiCo is trading at a premium to the group.
One should further note that PEP currently holds a PEG ratio of 2.53. The PEG ratio bears resemblance to the frequently used P/E ratio, but this parameter also includes the company's expected earnings growth trajectory. The Beverages - Soft drinks was holding an average PEG ratio of 2.24 at yesterday's closing price.
The Beverages - Soft drinks industry is part of the Consumer Staples sector. With its current Zacks Industry Rank of 90, this industry ranks in the top 36% of all industries, numbering over 250.
The Zacks Industry Rank assesses the strength of our separate industry groups by calculating the average Zacks Rank of the individual stocks contained within the groups. Our research shows that the top 50% rated industries outperform the bottom half by a factor of 2 to 1.
To follow PEP in the coming trading sessions, be sure to utilize Zacks.com.
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PepsiCo, Inc. (PEP) : Free Stock Analysis Report
