Yahoo Finance PepsiCo (PEP) Gains As Market Dips: What You Should Know
PepsiCo (PEP) closed the most recent trading day at $176.63, moving +1.79% from the previous trading session. The stock outpaced the S&P 500's daily loss of 0.7%. Elsewhere, the Dow lost 0.87%, while the tech-heavy Nasdaq added 2.77%.
Coming into today, shares of the food and beverage company had lost 1.27% in the past month. In that same time, the Consumer Staples sector lost 1.52%, while the S&P 500 lost 5.06%.
Wall Street will be looking for positivity from PepsiCo as it approaches its next earnings report date. This is expected to be April 25, 2023. The company is expected to report EPS of $1.37, up 6.2% from the prior-year quarter. Our most recent consensus estimate is calling for quarterly revenue 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. These revisions typically reflect the latest short-term business trends, which can change frequently. With this in mind, we can consider positive estimate revisions a sign of optimism about the company's business outlook.
Research indicates that these estimate revisions are directly correlated with near-term share price momentum. 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, which ranges from #1 (Strong Buy) to #5 (Strong Sell), has an impressive outside-audited track record of outperformance, with #1 stocks generating an average annual return of +25% since 1988. Over the past month, the Zacks Consensus EPS estimate has moved 0.06% lower. PepsiCo is currently sporting a Zacks Rank of #3 (Hold).
In terms of valuation, PepsiCo is currently trading at a Forward P/E ratio of 24.01. For comparison, its industry has an average Forward P/E of 23.11, which means PepsiCo is trading at a premium to the group.
Investors should also note that PEP has a PEG ratio of 3.15 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. Beverages - Soft drinks stocks are, on average, holding a PEG ratio of 2.9 based on yesterday's closing prices.
The Beverages - Soft drinks industry is part of the Consumer Staples sector. This group has a Zacks Industry Rank of 83, putting it in the top 33% 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.
You can find more information on all of these metrics, and much more, on Zacks.com.
Want the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days. Click to get this free report
PepsiCo, Inc. (PEP) : Free Stock Analysis Report
