PepsiCo (PEP) closed the most recent trading day at $135.36, moving -0.06% from the previous trading session. This change was narrower than the S&P 500's daily loss of 0.84%. Elsewhere, the Dow lost 0.53%, while the tech-heavy Nasdaq lost 1.47%.
Prior to today's trading, shares of the food and beverage company had gained 1.27% over the past month. This has lagged the Consumer Staples sector's gain of 1.39% and the S&P 500's gain of 5.2% in that time.
PEP will be looking to display strength as it nears its next earnings release, which is expected to be October 3, 2019. In that report, analysts expect PEP to post earnings of $1.50 per share. This would mark a year-over-year decline of 5.66%. Meanwhile, our latest consensus estimate is calling for revenue of $16.97 billion, up 2.93% from the prior-year quarter.
For the full year, our Zacks Consensus Estimates are projecting earnings of $5.51 per share and revenue of $66.56 billion, which would represent changes of -2.65% and +2.94%, respectively, from the prior year.
Investors might also notice recent changes to analyst estimates for PEP. These revisions typically reflect the latest short-term business trends, which can change frequently. As a result, we can interpret positive estimate revisions as a good sign for the company's business outlook.
Research indicates that these estimate revisions are directly correlated with near-term share price momentum. 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 remained stagnant. PEP is currently sporting a Zacks Rank of #3 (Hold).
Digging into valuation, PEP currently has a Forward P/E ratio of 24.57. This valuation marks a premium compared to its industry's average Forward P/E of 21.85.
Investors should also note that PEP has a PEG ratio of 3.52 right now. 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 currently had an average PEG ratio of 2.66 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 162, putting it in the bottom 37% 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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