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PepsiCo (PEP) Stock Moves -0.72%: What You Should Know
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PepsiCo (PEP - Free Report) closed at $181.75 in the latest trading session, marking a -0.72% move from the prior day. This move was narrower than the S&P 500's daily loss of 1.2%. Elsewhere, the Dow lost 1.1%, while the tech-heavy Nasdaq lost 2.86%.
Prior to today's trading, shares of the food and beverage company had gained 0.26% over the past month. This has lagged the Consumer Staples sector's gain of 1.13% and outpaced the S&P 500's loss of 4.77% in that time.
PepsiCo will be looking to display strength as it nears its next earnings release, which is expected to be February 9, 2023. In that report, analysts expect PepsiCo to post earnings of $1.64 per share. This would mark year-over-year growth of 7.19%. Our most recent consensus estimate is calling for quarterly revenue of $26.71 billion, up 5.78% from the year-ago period.
Looking at the full year, our Zacks Consensus Estimates suggest analysts are expecting earnings of $6.76 per share and revenue of $85.1 billion. These totals would mark changes of +7.99% and +7.08%, respectively, from last 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.
Research indicates that these estimate revisions are directly correlated with near-term share price momentum. We developed the Zacks Rank to capitalize on this phenomenon. Our system takes these estimate changes into account and delivers a clear, actionable rating model.
The Zacks Rank system, which ranges from #1 (Strong Buy) to #5 (Strong Sell), has an impressive outside-audited track record of outperformance, with #1 stocks generating an average annual return of +25% since 1988. Within the past 30 days, our consensus EPS projection remained stagnant. PepsiCo is holding a Zacks Rank of #2 (Buy) right now.
Valuation is also important, so investors should note that PepsiCo has a Forward P/E ratio of 27.09 right now. For comparison, its industry has an average Forward P/E of 25.88, which means PepsiCo is trading at a premium to the group.
It is also worth noting that PEP currently has a PEG ratio of 3.52. 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. Beverages - Soft drinks stocks are, on average, holding a PEG ratio of 3.22 based on yesterday's closing prices.
The Beverages - Soft drinks industry is part of the Consumer Staples sector. This group has a Zacks Industry Rank of 47, putting it in the top 19% 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) Stock Moves -0.72%: What You Should Know
PepsiCo (PEP - Free Report) closed at $181.75 in the latest trading session, marking a -0.72% move from the prior day. This move was narrower than the S&P 500's daily loss of 1.2%. Elsewhere, the Dow lost 1.1%, while the tech-heavy Nasdaq lost 2.86%.
Prior to today's trading, shares of the food and beverage company had gained 0.26% over the past month. This has lagged the Consumer Staples sector's gain of 1.13% and outpaced the S&P 500's loss of 4.77% in that time.
PepsiCo will be looking to display strength as it nears its next earnings release, which is expected to be February 9, 2023. In that report, analysts expect PepsiCo to post earnings of $1.64 per share. This would mark year-over-year growth of 7.19%. Our most recent consensus estimate is calling for quarterly revenue of $26.71 billion, up 5.78% from the year-ago period.
Looking at the full year, our Zacks Consensus Estimates suggest analysts are expecting earnings of $6.76 per share and revenue of $85.1 billion. These totals would mark changes of +7.99% and +7.08%, respectively, from last 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.
Research indicates that these estimate revisions are directly correlated with near-term share price momentum. We developed the Zacks Rank to capitalize on this phenomenon. Our system takes these estimate changes into account and delivers a clear, actionable rating model.
The Zacks Rank system, which ranges from #1 (Strong Buy) to #5 (Strong Sell), has an impressive outside-audited track record of outperformance, with #1 stocks generating an average annual return of +25% since 1988. Within the past 30 days, our consensus EPS projection remained stagnant. PepsiCo is holding a Zacks Rank of #2 (Buy) right now.
Valuation is also important, so investors should note that PepsiCo has a Forward P/E ratio of 27.09 right now. For comparison, its industry has an average Forward P/E of 25.88, which means PepsiCo is trading at a premium to the group.
It is also worth noting that PEP currently has a PEG ratio of 3.52. 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. Beverages - Soft drinks stocks are, on average, holding a PEG ratio of 3.22 based on yesterday's closing prices.
The Beverages - Soft drinks industry is part of the Consumer Staples sector. This group has a Zacks Industry Rank of 47, putting it in the top 19% 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.