PepsiCo (PEP) Dips More Than Broader Markets: What You Should Know
In the latest trading session, PepsiCo (PEP) closed at $132.13, marking a -0.68% move from the previous day. This move lagged the S&P 500's daily loss of 0.54%. Meanwhile, the Dow gained 0.97%, and the Nasdaq, a tech-heavy index, lost 2.41%.
Coming into today, shares of the food and beverage company had lost 4.76% in the past month. In that same time, the Consumer Staples sector lost 0.94%, while the S&P 500 lost 1.04%.
Investors will be hoping for strength from PEP as it approaches its next earnings release, which is expected to be April 15, 2021. In that report, analysts expect PEP to post earnings of $1.12 per share. This would mark year-over-year growth of 4.67%. Our most recent consensus estimate is calling for quarterly revenue of $14.59 billion, up 5.07% from the year-ago period.
PEP's full-year Zacks Consensus Estimates are calling for earnings of $6.04 per share and revenue of $75.23 billion. These results would represent year-over-year changes of +9.42% and +6.9%, respectively.
Investors should also note any recent changes to analyst estimates for PEP. Recent revisions tend to reflect the latest near-term business trends. As such, positive estimate revisions reflect analyst optimism about the company's business and profitability.
Based on our research, we believe these estimate revisions are directly related to near-team stock moves. To benefit from this, we have developed the Zacks Rank, a proprietary model which takes these estimate changes into account and provides an actionable rating system.
The Zacks Rank system ranges from #1 (Strong Buy) to #5 (Strong Sell). It has a remarkable, outside-audited track record of success, with #1 stocks delivering an average annual return of +25% since 1988. Within the past 30 days, our consensus EPS projection has moved 0.42% higher. PEP currently has a Zacks Rank of #3 (Hold).
In terms of valuation, PEP is currently trading at a Forward P/E ratio of 22.01. This valuation marks a premium compared to its industry's average Forward P/E of 20.85.
Investors should also note that PEP has a PEG ratio of 3.17 right now. 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. The Beverages - Soft drinks industry currently had an average PEG ratio of 2.55 as of yesterday's close.
The Beverages - Soft drinks industry is part of the Consumer Staples sector. This group has a Zacks Industry Rank of 168, putting it in the bottom 35% of all 250+ industries.
The Zacks Industry Rank includes is listed in order from best to worst in terms of the average Zacks Rank of the individual companies within each of these sectors. 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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