PepsiCo (PEP) closed the most recent trading day at $137.54, moving +0.62% from the previous trading session. The stock outpaced the S&P 500's daily of 0%. At the same time, the Dow added 0.08%, and the tech-heavy Nasdaq lost 0.18%.
Prior to today's trading, shares of the food and beverage company had gained 0.57% over the past month. This has lagged the Consumer Staples sector's gain of 3.21% and the S&P 500's gain of 3.37% in that time.
PEP will be looking to display strength as it nears its next earnings release, which is expected to be February 13, 2020. On that day, PEP is projected to report earnings of $1.43 per share, which would represent a year-over-year decline of 4.03%. Meanwhile, the Zacks Consensus Estimate for revenue is projecting net sales of $20.36 billion, up 4.3% from the year-ago period.
Looking at the full year, our Zacks Consensus Estimates suggest analysts are expecting earnings of $5.50 per share and revenue of $66.81 billion. These totals would mark changes of -2.83% and +3.32%, respectively, from last year.
Investors might also notice recent changes to analyst estimates for PEP. Recent revisions tend to reflect the latest near-term business trends. With this in mind, we can consider positive estimate revisions a sign of optimism about the company's business outlook.
Based on our research, we believe these estimate revisions are directly related to near-team stock moves. 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.
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. Over the past month, the Zacks Consensus EPS estimate has moved 0.02% lower. PEP is currently sporting a Zacks Rank of #4 (Sell).
Valuation is also important, so investors should note that PEP has a Forward P/E ratio of 24.84 right now. This valuation marks a premium compared to its industry's average Forward P/E of 23.19.
We can also see that PEP currently has a PEG ratio of 3.55. 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 2.2 as of yesterday's close.
The Beverages - Soft drinks industry is part of the Consumer Staples sector. This industry currently has a Zacks Industry Rank of 151, which puts it in the bottom 41% 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.
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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