PepsiCo (PEP) closed at $132.63 in the latest trading session, marking a -0.27% move from the prior day. This change lagged the S&P 500's daily gain of 0.82%. At the same time, the Dow added 1.05%, and the tech-heavy Nasdaq gained 0.59%.
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. The company is expected to report EPS of $1.25, down 18.83% from the prior-year quarter. Meanwhile, the Zacks Consensus Estimate for revenue is projecting net sales of $15.68 billion, down 4.65% from the year-ago period.
Looking at the full year, our Zacks Consensus Estimates suggest analysts are expecting earnings of $5.32 per share and revenue of $67.59 billion. These totals would mark changes of -3.8% and +0.64%, respectively, from last year.
It is also important to note the recent changes to analyst estimates for PEP. These revisions help to show the ever-changing nature of 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. 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. Within the past 30 days, our consensus EPS projection has moved 1.14% lower. PEP is currently sporting a Zacks Rank of #3 (Hold).
Looking at its valuation, PEP is holding a Forward P/E ratio of 24.99. For comparison, its industry has an average Forward P/E of 22.17, which means PEP is trading at a premium to the group.
Investors should also note that PEP has a PEG ratio of 5.08 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. PEP's industry had an average PEG ratio of 4.71 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 62, which puts it in the top 25% 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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