We use cookies to understand how you use our site and to improve your experience. This includes personalizing content and advertising. To learn more, click here. By continuing to use our site, you accept our use of cookies, revised Privacy Policy and Terms of Service.
You are being directed to ZacksTrade, a division of LBMZ Securities and licensed broker-dealer. ZacksTrade and Zacks.com are separate companies. The web link between the two companies is not a solicitation or offer to invest in a particular security or type of security. ZacksTrade does not endorse or adopt any particular investment strategy, any analyst opinion/rating/report or any approach to evaluating individual securities.
If you wish to go to ZacksTrade, click OK. If you do not, click Cancel.
PepsiCo (PEP) Gains But Lags Market: What You Should Know
Read MoreHide Full Article
PepsiCo (PEP - Free Report) closed the most recent trading day at $178.05, moving +0.11% from the previous trading session. The stock lagged the S&P 500's daily gain of 1.29%. Elsewhere, the Dow gained 0.8%, while the tech-heavy Nasdaq added 10.96%.
Coming into today, shares of the food and beverage company had lost 3.27% in the past month. In that same time, the Consumer Staples sector lost 0.21%, while the S&P 500 lost 0.23%.
PepsiCo will be looking to display strength as it nears its next earnings release, which is expected to be February 9, 2023. On that day, PepsiCo is projected to report earnings of $1.64 per share, which would represent year-over-year growth of 7.19%. Our most recent consensus estimate is calling for quarterly revenue of $26.79 billion, up 6.09% from the year-ago period.
Investors should also note any recent changes to analyst estimates for PepsiCo. These revisions help to show the ever-changing nature of near-term business trends. 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. Over the past month, the Zacks Consensus EPS estimate has moved 0.26% higher. PepsiCo currently has a Zacks Rank of #2 (Buy).
Looking at its valuation, PepsiCo is holding a Forward P/E ratio of 24.48. For comparison, its industry has an average Forward P/E of 24.44, which means PepsiCo is trading at a premium to the group.
Also, we should mention that PEP has a PEG ratio of 3.18. 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 2.65 as of yesterday's close.
The Beverages - Soft drinks industry is part of the Consumer Staples sector. This industry currently has a Zacks Industry Rank of 22, which puts it in the top 9% 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.
Make sure to utilize Zacks.com to follow all of these stock-moving metrics, and more, in the coming trading sessions.
See More Zacks Research for These Tickers
Normally $25 each - click below to receive one report FREE:
Image: Bigstock
PepsiCo (PEP) Gains But Lags Market: What You Should Know
PepsiCo (PEP - Free Report) closed the most recent trading day at $178.05, moving +0.11% from the previous trading session. The stock lagged the S&P 500's daily gain of 1.29%. Elsewhere, the Dow gained 0.8%, while the tech-heavy Nasdaq added 10.96%.
Coming into today, shares of the food and beverage company had lost 3.27% in the past month. In that same time, the Consumer Staples sector lost 0.21%, while the S&P 500 lost 0.23%.
PepsiCo will be looking to display strength as it nears its next earnings release, which is expected to be February 9, 2023. On that day, PepsiCo is projected to report earnings of $1.64 per share, which would represent year-over-year growth of 7.19%. Our most recent consensus estimate is calling for quarterly revenue of $26.79 billion, up 6.09% from the year-ago period.
Investors should also note any recent changes to analyst estimates for PepsiCo. These revisions help to show the ever-changing nature of near-term business trends. 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. Over the past month, the Zacks Consensus EPS estimate has moved 0.26% higher. PepsiCo currently has a Zacks Rank of #2 (Buy).
Looking at its valuation, PepsiCo is holding a Forward P/E ratio of 24.48. For comparison, its industry has an average Forward P/E of 24.44, which means PepsiCo is trading at a premium to the group.
Also, we should mention that PEP has a PEG ratio of 3.18. 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 2.65 as of yesterday's close.
The Beverages - Soft drinks industry is part of the Consumer Staples sector. This industry currently has a Zacks Industry Rank of 22, which puts it in the top 9% 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.
Make sure to utilize Zacks.com to follow all of these stock-moving metrics, and more, in the coming trading sessions.