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PepsiCo (PEP) Gains But Lags Market: What You Should Know
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PepsiCo (PEP - Free Report) closed at $180.93 in the latest trading session, marking a +0.38% move from the prior day. This move lagged the S&P 500's daily gain of 1.45%. Elsewhere, the Dow gained 0.85%, while the tech-heavy Nasdaq added 1.74%.
Heading into today, shares of the food and beverage company had lost 3.85% over the past month, outpacing the Consumer Staples sector's loss of 4% and lagging the S&P 500's loss of 3.08% in that time.
Investors will be hoping for strength from PepsiCo as it approaches its next earnings release. In that report, analysts expect PepsiCo to post earnings of $2.18 per share. This would mark year-over-year growth of 10.66%. Our most recent consensus estimate is calling for quarterly revenue of $23.42 billion, up 6.59% from the year-ago period.
Looking at the full year, our Zacks Consensus Estimates suggest analysts are expecting earnings of $7.48 per share and revenue of $92.18 billion. These totals would mark changes of +10.16% and +6.7%, respectively, from last year.
Investors should also note any recent changes to analyst estimates for PepsiCo. These revisions typically reflect the latest short-term business trends, which can change frequently. As a result, we can interpret positive estimate revisions as a good sign for the company's business outlook.
Based on our research, we believe these estimate revisions are directly related to near-team stock moves. To benefit from this, we have developed the Zacks Rank, a proprietary model which takes these estimate changes into account and provides an 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 remained stagnant. PepsiCo is holding a Zacks Rank of #2 (Buy) right now.
Digging into valuation, PepsiCo currently has a Forward P/E ratio of 24.09. This valuation marks a premium compared to its industry's average Forward P/E of 20.85.
We can also see that PEP currently has a PEG ratio of 2.96. 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 was holding an average PEG ratio of 2.48 at yesterday's closing price.
The Beverages - Soft drinks industry is part of the Consumer Staples sector. This industry currently has a Zacks Industry Rank of 41, which puts it in the top 17% 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.
To follow PEP in the coming trading sessions, be sure to utilize Zacks.com.
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PepsiCo (PEP) Gains But Lags Market: What You Should Know
PepsiCo (PEP - Free Report) closed at $180.93 in the latest trading session, marking a +0.38% move from the prior day. This move lagged the S&P 500's daily gain of 1.45%. Elsewhere, the Dow gained 0.85%, while the tech-heavy Nasdaq added 1.74%.
Heading into today, shares of the food and beverage company had lost 3.85% over the past month, outpacing the Consumer Staples sector's loss of 4% and lagging the S&P 500's loss of 3.08% in that time.
Investors will be hoping for strength from PepsiCo as it approaches its next earnings release. In that report, analysts expect PepsiCo to post earnings of $2.18 per share. This would mark year-over-year growth of 10.66%. Our most recent consensus estimate is calling for quarterly revenue of $23.42 billion, up 6.59% from the year-ago period.
Looking at the full year, our Zacks Consensus Estimates suggest analysts are expecting earnings of $7.48 per share and revenue of $92.18 billion. These totals would mark changes of +10.16% and +6.7%, respectively, from last year.
Investors should also note any recent changes to analyst estimates for PepsiCo. These revisions typically reflect the latest short-term business trends, which can change frequently. As a result, we can interpret positive estimate revisions as a good sign for the company's business outlook.
Based on our research, we believe these estimate revisions are directly related to near-team stock moves. To benefit from this, we have developed the Zacks Rank, a proprietary model which takes these estimate changes into account and provides an 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 remained stagnant. PepsiCo is holding a Zacks Rank of #2 (Buy) right now.
Digging into valuation, PepsiCo currently has a Forward P/E ratio of 24.09. This valuation marks a premium compared to its industry's average Forward P/E of 20.85.
We can also see that PEP currently has a PEG ratio of 2.96. 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 was holding an average PEG ratio of 2.48 at yesterday's closing price.
The Beverages - Soft drinks industry is part of the Consumer Staples sector. This industry currently has a Zacks Industry Rank of 41, which puts it in the top 17% 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.
To follow PEP in the coming trading sessions, be sure to utilize Zacks.com.