In the latest trading session, PepsiCo (PEP) closed at $136.45, marking a -1.2% move from the previous day. This change lagged the S&P 500's 0.44% loss on the day. Meanwhile, the Dow lost 0.31%, and the Nasdaq, a tech-heavy index, lost 0.57%.
Heading into today, shares of the food and beverage company had gained 2.74% over the past month, lagging the Consumer Staples sector's gain of 4.88% and the S&P 500's gain of 5.27% in that time.
Investors will be hoping for strength from PEP as it approaches its next earnings release. The company is expected to report EPS of $1.47, down 5.77% from the prior-year quarter. Meanwhile, our latest consensus estimate is calling for revenue of $17.26 billion, up 0.41% from the prior-year quarter.
PEP's full-year Zacks Consensus Estimates are calling for earnings of $5.34 per share and revenue of $68.31 billion. These results would represent year-over-year changes of -3.44% and +1.72%, respectively.
Any recent changes to analyst estimates for PEP should also be noted by investors. These revisions help to show the ever-changing nature of near-term business trends. With this in mind, we can consider positive estimate revisions a sign of optimism about the company's business outlook.
Research indicates that these estimate revisions are directly correlated with near-term share price momentum. Investors can capitalize on this by using the Zacks Rank. This model considers these estimate changes and provides a simple, actionable 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. Within the past 30 days, our consensus EPS projection remained stagnant. PEP is currently a Zacks Rank #3 (Hold).
Investors should also note PEP's current valuation metrics, including its Forward P/E ratio of 25.84. Its industry sports an average Forward P/E of 22.37, so we one might conclude that PEP is trading at a premium comparatively.
Meanwhile, PEP's PEG ratio is currently 4.61. 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. PEP's industry had an average PEG ratio of 4.61 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 177, which puts it in the bottom 31% 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.
Make sure to utilize Zacks. Com to follow all of these stock-moving metrics, and more, in the coming trading sessions.
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