PepsiCo (PEP) Gains As Market Dips: What You Should Know
PepsiCo (PEP) closed the most recent trading day at $171.93, moving +0.73% from the previous trading session. This change outpaced the S&P 500's 0.02% loss on the day. Elsewhere, the Dow gained 0.03%, while the tech-heavy Nasdaq added 5.44%.
Coming into today, shares of the food and beverage company had lost 6.76% in the past month. In that same time, the Consumer Staples sector lost 1.82%, while the S&P 500 gained 4.57%.
Wall Street will be looking for positivity from PepsiCo as it approaches its next earnings report date. This is expected to be February 9, 2023. On that day, PepsiCo is projected to report earnings of $1.64 per share, which would represent year-over-year growth of 7.19%. Our most recent consensus estimate is calling for quarterly revenue of $26.81 billion, up 6.19% from the year-ago period.
Investors might also notice recent changes to analyst estimates for PepsiCo. These revisions typically reflect the latest short-term business trends, which can change frequently. As such, positive estimate revisions reflect analyst optimism about the company's business and profitability.
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.
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. Within the past 30 days, our consensus EPS projection has moved 0.08% higher. PepsiCo is currently sporting a Zacks Rank of #3 (Hold).
Valuation is also important, so investors should note that PepsiCo has a Forward P/E ratio of 23.52 right now. This represents a discount compared to its industry's average Forward P/E of 23.64.
We can also see that PEP currently has a PEG ratio of 3.06. The PEG ratio is similar to the widely-used P/E ratio, but this metric also takes the company's expected earnings growth rate into account. PEP's industry had an average PEG ratio of 2.77 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 28, putting it in the top 12% 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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