PepsiCo (PEP) closed at $184.45 in the latest trading session, marking a +0.51% move from the prior day. This move outpaced the S&P 500's daily gain of 0.33%. Meanwhile, the Dow gained 0.3%, and the Nasdaq, a tech-heavy index, added 1.92%.
Coming into today, shares of the food and beverage company had gained 4.78% in the past month. In that same time, the Consumer Staples sector gained 5.07%, while the S&P 500 gained 5.67%.
PepsiCo will be looking to display strength as it nears its next earnings release, which is expected to be April 25, 2023. On that day, PepsiCo is projected to report earnings of $1.37 per share, which would represent year-over-year growth of 6.2%. Meanwhile, the Zacks Consensus Estimate for revenue is projecting net sales of $17.18 billion, up 6.05% from the year-ago period.
PEP's full-year Zacks Consensus Estimates are calling for earnings of $7.23 per share and revenue of $89.48 billion. These results would represent year-over-year changes of +6.48% and +3.58%, respectively.
It is also important to note the recent changes to analyst estimates for PepsiCo. 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.
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 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. Over the past month, the Zacks Consensus EPS estimate remained stagnant. PepsiCo is currently a Zacks Rank #3 (Hold).
Valuation is also important, so investors should note that PepsiCo has a Forward P/E ratio of 25.39 right now. Its industry sports an average Forward P/E of 24.83, so we one might conclude that PepsiCo is trading at a premium comparatively.
Investors should also note that PEP has a PEG ratio of 3.33 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. PEP's industry had an average PEG ratio of 2.94 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 45, putting it in the top 18% 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.
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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