PepsiCo (PEP) closed the most recent trading day at $130.48, moving +1.15% from the previous trading session. The stock outpaced the S&P 500's daily gain of 0.83%. Elsewhere, the Dow gained 0.62%, while the tech-heavy Nasdaq added 1.43%.
Wall Street will be looking for positivity from PEP as it approaches its next earnings report date. This is expected to be July 13, 2020. On that day, PEP is projected to report earnings of $1.25 per share, which would represent a year-over-year decline of 18.83%. Meanwhile, our latest consensus estimate is calling for revenue of $15.68 billion, down 4.65% from the prior-year quarter.
PEP's full-year Zacks Consensus Estimates are calling for earnings of $5.32 per share and revenue of $67.59 billion. These results would represent year-over-year changes of -3.8% and +0.64%, 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. 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 1.14% lower. PEP currently has a Zacks Rank of #3 (Hold).
Valuation is also important, so investors should note that PEP has a Forward P/E ratio of 24.24 right now. For comparison, its industry has an average Forward P/E of 23.62, which means PEP is trading at a premium to the group.
It is also worth noting that PEP currently has a PEG ratio of 4.93. 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. PEP's industry had an average PEG ratio of 4.93 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 65, putting it in the top 26% 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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