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PepsiCo (PEP) Rises As Market Takes a Dip: Key Facts

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PepsiCo (PEP - Free Report) ended the recent trading session at $150.37, demonstrating a +0.08% swing from the preceding day's closing price. The stock's performance was ahead of the S&P 500's daily loss of 0.47%. Elsewhere, the Dow saw a downswing of 0.31%, while the tech-heavy Nasdaq depreciated by 0.51%.

The the stock of food and beverage company has fallen by 1.19% in the past month, lagging the Consumer Staples sector's loss of 0.87% and the S&P 500's gain of 1.67%.

The upcoming earnings release of PepsiCo will be of great interest to investors. The company's earnings report is expected on February 4, 2025. The company is expected to report EPS of $1.95, up 9.55% from the prior-year quarter. In the meantime, our current consensus estimate forecasts the revenue to be $27.93 billion, indicating a 0.29% growth compared to the corresponding quarter of the prior year.

It is also important to note the recent changes to analyst estimates for PepsiCo. These recent revisions tend to reflect the evolving nature of short-term business trends. As a result, we can interpret positive estimate revisions as a good sign for the company's business outlook.

Our research reveals that these estimate alterations are directly linked with the stock price performance in the near future. To exploit this, we've formed the Zacks Rank, a quantitative model that includes these estimate changes and presents a viable rating system.

The Zacks Rank system, spanning from #1 (Strong Buy) to #5 (Strong Sell), boasts an impressive track record of outperformance, audited externally, with #1 ranked stocks yielding an average annual return of +25% since 1988. Within the past 30 days, our consensus EPS projection has moved 0.87% lower. Currently, PepsiCo is carrying a Zacks Rank of #4 (Sell).

With respect to valuation, PepsiCo is currently being traded at a Forward P/E ratio of 17.65. This valuation marks a discount compared to its industry's average Forward P/E of 17.85.

It's also important to note that PEP currently trades at a PEG ratio of 2.91. 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. The Beverages - Soft drinks industry currently had an average PEG ratio of 2.29 as of yesterday's close.

The Beverages - Soft drinks industry is part of the Consumer Staples sector. This industry, currently bearing a Zacks Industry Rank of 137, finds itself in the bottom 46% echelons of all 250+ industries.

The Zacks Industry Rank assesses the strength of our separate industry groups by calculating the average Zacks Rank of the individual stocks contained 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.


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