PepsiCo (PEP) closed the most recent trading day at $128.17, moving +0.42% from the previous trading session. This move outpaced the S&P 500's daily loss of 0.69%. Meanwhile, the Dow lost 0.87%, and the Nasdaq, a tech-heavy index, lost 0.79%.
Coming into today, shares of the food and beverage company had lost 0.33% in the past month. In that same time, the Consumer Staples sector lost 1.57%, while the S&P 500 lost 4.53%.
PEP will be looking to display strength as it nears its next earnings release, which is expected to be July 9, 2019. On that day, PEP is projected to report earnings of $1.50 per share, which would represent a year-over-year decline of 6.83%. Meanwhile, our latest consensus estimate is calling for revenue of $16.42 billion, up 2.08% from the prior-year quarter.
Looking at the full year, our Zacks Consensus Estimates suggest analysts are expecting earnings of $5.51 per share and revenue of $66.52 billion. These totals would mark changes of -2.65% and +2.88%, respectively, from last year.
Any recent changes to analyst estimates for PEP should also be noted by investors. 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. We developed the Zacks Rank to capitalize on this phenomenon. Our system takes these estimate changes into account and delivers a clear, actionable rating model.
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 0.05% higher. PEP is currently sporting a Zacks Rank of #2 (Buy).
In terms of valuation, PEP is currently trading at a Forward P/E ratio of 23.16. Its industry sports an average Forward P/E of 23.29, so we one might conclude that PEP is trading at a discount comparatively.
Meanwhile, PEP's PEG ratio is currently 3.31. The PEG ratio is similar to the widely-used P/E ratio, but this metric also takes the company's expected earnings growth rate into account. The Beverages - Soft drinks was holding an average PEG ratio of 2.14 at yesterday's closing price.
The Beverages - Soft drinks industry is part of the Consumer Staples sector. This industry currently has a Zacks Industry Rank of 155, which puts it in the bottom 40% of all 250+ industries.
The Zacks Industry Rank gauges the strength of our individual 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.
You can find more information on all of these metrics, and much more, on Zacks.com.
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