Yahoo Finance PepsiCo (PEP) Stock Sinks As Market Gains: What You Should Know
PepsiCo (PEP) closed the most recent trading day at $192.06, moving -0.71% from the previous trading session. This move lagged the S&P 500's daily gain of 1.19%. Meanwhile, the Dow gained 1.24%, and the Nasdaq, a tech-heavy index, added 8.36%.
Coming into today, shares of the food and beverage company had gained 4.65% in the past month. In that same time, the Consumer Staples sector gained 0.67%, while the S&P 500 lost 0.54%.
Wall Street will be looking for positivity from PepsiCo as it approaches its next earnings report date. The company is expected to report EPS of $1.95, up 4.84% from the prior-year quarter. Meanwhile, the Zacks Consensus Estimate for revenue is projecting net sales of $21.63 billion, up 6.97% from the year-ago period.
Looking at the full year, our Zacks Consensus Estimates suggest analysts are expecting earnings of $7.30 per share and revenue of $90.66 billion. These totals would mark changes of +7.51% and +4.94%, respectively, from last year.
Investors might also notice recent changes to analyst estimates for PepsiCo. These recent revisions tend to reflect the evolving nature of short-term business trends. 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 0.97% higher. PepsiCo is holding a Zacks Rank of #2 (Buy) right now.
In terms of valuation, PepsiCo is currently trading at a Forward P/E ratio of 26.51. This valuation marks a premium compared to its industry's average Forward P/E of 23.24.
It is also worth noting that PEP currently has a PEG ratio of 3.38. This popular metric is similar to the widely-known P/E ratio, with the difference being that the PEG ratio also takes into account the company's expected earnings growth rate. The Beverages - Soft drinks industry currently had an average PEG ratio of 2.56 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 39, putting it in the top 16% of all 250+ industries.
The Zacks Industry Rank gauges the strength of our 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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PepsiCo, Inc. (PEP) : Free Stock Analysis Report
