PepsiCo (PEP) Dips More Than Broader Market: What You Should Know
In the latest market close, PepsiCo (PEP) reached $167.03, with a -0.67% movement compared to the previous day. The stock trailed the S&P 500, which registered a daily loss of 0.17%. At the same time, the Dow lost 0.06%, and the tech-heavy Nasdaq lost 0.55%.
The food and beverage company's shares have seen a decrease of 0.86% over the last month, not keeping up with the Consumer Staples sector's gain of 1.63% and the S&P 500's gain of 3.98%.
Market participants will be closely following the financial results of PepsiCo in its upcoming release. The company's earnings per share (EPS) are projected to be $1.52, reflecting a 1.33% increase from the same quarter last year. Our most recent consensus estimate is calling for quarterly revenue of $18.18 billion, up 1.86% from the year-ago period.
In terms of the entire fiscal year, the Zacks Consensus Estimates predict earnings of $8.15 per share and a revenue of $94.65 billion, indicating changes of +6.96% and +3.48%, respectively, from the former year.
It is also important to note the recent changes to analyst estimates for PepsiCo. Such recent modifications usually signify the changing landscape of near-term business trends. As a result, upbeat changes in estimates indicate analysts' favorable outlook on the company's business health and profitability.
Our research shows that these estimate changes are directly correlated with near-term stock prices. To utilize this, we have created the Zacks Rank, a proprietary model that integrates these estimate changes and provides a functional rating system.
Ranging from #1 (Strong Buy) to #5 (Strong Sell), the Zacks Rank system has a proven, outside-audited track record of outperformance, with #1 stocks returning an average of +25% annually since 1988. Within the past 30 days, our consensus EPS projection has moved 0.47% higher. PepsiCo currently has a Zacks Rank of #3 (Hold).
Valuation is also important, so investors should note that PepsiCo has a Forward P/E ratio of 20.62 right now. For comparison, its industry has an average Forward P/E of 18.69, which means PepsiCo is trading at a premium to the group.
One should further note that PEP currently holds a PEG ratio of 2.63. 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. The Beverages - Soft drinks industry had an average PEG ratio of 2.42 as trading concluded yesterday.
The Beverages - Soft drinks industry is part of the Consumer Staples sector. With its current Zacks Industry Rank of 54, this industry ranks in the top 22% of all industries, numbering over 250.
The Zacks Industry Rank assesses the vigor of our specific industry groups by computing the average Zacks Rank of the individual stocks incorporated in the groups. Our research shows that the top 50% rated industries outperform the bottom half by a factor of 2 to 1.
Remember to apply Zacks.com to follow these and more stock-moving metrics during the upcoming trading sessions.
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PepsiCo, Inc. (PEP) : Free Stock Analysis Report
