Back to top

Image: Bigstock

PepsiCo (PEP) Stock Falls Amid Market Uptick: What Investors Need to Know

Read MoreHide Full Article

PepsiCo (PEP - Free Report) closed the most recent trading day at $165.78, moving -0.83% from the previous trading session. This change lagged the S&P 500's daily gain of 1.23%. Elsewhere, the Dow gained 1.06%, while the tech-heavy Nasdaq added 1.7%.

The food and beverage company's shares have seen an increase of 0.12% over the last month, not keeping up with the Consumer Staples sector's gain of 4% and the S&P 500's gain of 0.94%.

The investment community will be closely monitoring the performance of PepsiCo in its forthcoming earnings report. The company is scheduled to release its earnings on February 9, 2024. The company is predicted to post an EPS of $1.72, indicating a 2.99% growth compared to the equivalent quarter last year. Meanwhile, our latest consensus estimate is calling for revenue of $28.26 billion, up 0.95% from the prior-year quarter.

Any recent changes to analyst estimates for PepsiCo should also be noted by investors. Recent revisions tend to reflect the latest near-term business trends. As a result, upbeat changes in estimates indicate analysts' favorable outlook on the company's business health and profitability.

Our research shows that these estimate changes are directly correlated with near-term stock prices. 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, which varies between #1 (Strong Buy) and #5 (Strong Sell), carries an impressive track record of exceeding expectations, confirmed by external audits, with stocks at #1 delivering an average annual return of +25% since 1988. Over the past month, the Zacks Consensus EPS estimate has remained steady. PepsiCo is currently a Zacks Rank #2 (Buy).

Investors should also note PepsiCo's current valuation metrics, including its Forward P/E ratio of 20.6. This denotes a premium relative to the industry's average Forward P/E of 18.64.

We can additionally observe that PEP currently boasts a PEG ratio of 2.5. The PEG ratio is akin to the commonly utilized P/E ratio, but this measure also incorporates the company's anticipated earnings growth rate. PEP's industry had an average PEG ratio of 2.19 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 30, putting it in the top 12% 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.

Don't forget to use Zacks.com to keep track of all these stock-moving metrics, and others, in the upcoming trading sessions.


See More Zacks Research for These Tickers


Normally $25 each - click below to receive one report FREE:


PepsiCo, Inc. (PEP) - free report >>

Published in