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PepsiCo (PEP) Dips More Than Broader Markets: What You Should Know
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PepsiCo (PEP - Free Report) closed at $183.70 in the latest trading session, marking a -1.35% move from the prior day. This change lagged the S&P 500's daily loss of 0.04%. Elsewhere, the Dow lost 0.22%, while the tech-heavy Nasdaq added 2.93%.
Heading into today, shares of the food and beverage company had gained 2.54% over the past month, outpacing the Consumer Staples sector's gain of 2.18% and lagging the S&P 500's gain of 4.22% in that time.
PepsiCo will be looking to display strength as it nears its next earnings release, which is expected to be July 13, 2023. On that day, PepsiCo is projected to report earnings of $1.95 per share, which would represent year-over-year growth of 4.84%. Our most recent consensus estimate is calling for quarterly revenue of $21.63 billion, up 6.97% from the year-ago period.
Looking at the full year, our Zacks Consensus Estimates suggest analysts are expecting earnings of $7.30 per share and revenue of $90.66 billion. These totals would mark changes of +7.51% and +4.94%, respectively, from last year.
Investors should also note any recent changes to analyst estimates for PepsiCo. Recent revisions tend to reflect the latest near-term business trends. As such, positive estimate revisions reflect analyst optimism about the company's business and profitability.
Research indicates that these estimate revisions are directly correlated with near-term share price momentum. 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.
The Zacks Rank system ranges from #1 (Strong Buy) to #5 (Strong Sell). It has a remarkable, outside-audited track record of success, with #1 stocks delivering an average annual return of +25% since 1988. The Zacks Consensus EPS estimate remained stagnant within the past month. PepsiCo is currently sporting a Zacks Rank of #2 (Buy).
In terms of valuation, PepsiCo is currently trading at a Forward P/E ratio of 25.52. This valuation marks a premium compared to its industry's average Forward P/E of 23.4.
It is also worth noting that PEP currently has a PEG ratio of 3.25. 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. PEP's industry had an average PEG ratio of 2.5 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 42, which puts it in the top 17% of all 250+ industries.
The Zacks Industry Rank gauges the strength of our 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.
To follow PEP in the coming trading sessions, be sure to utilize Zacks.com.
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PepsiCo (PEP) Dips More Than Broader Markets: What You Should Know
PepsiCo (PEP - Free Report) closed at $183.70 in the latest trading session, marking a -1.35% move from the prior day. This change lagged the S&P 500's daily loss of 0.04%. Elsewhere, the Dow lost 0.22%, while the tech-heavy Nasdaq added 2.93%.
Heading into today, shares of the food and beverage company had gained 2.54% over the past month, outpacing the Consumer Staples sector's gain of 2.18% and lagging the S&P 500's gain of 4.22% in that time.
PepsiCo will be looking to display strength as it nears its next earnings release, which is expected to be July 13, 2023. On that day, PepsiCo is projected to report earnings of $1.95 per share, which would represent year-over-year growth of 4.84%. Our most recent consensus estimate is calling for quarterly revenue of $21.63 billion, up 6.97% from the year-ago period.
Looking at the full year, our Zacks Consensus Estimates suggest analysts are expecting earnings of $7.30 per share and revenue of $90.66 billion. These totals would mark changes of +7.51% and +4.94%, respectively, from last year.
Investors should also note any recent changes to analyst estimates for PepsiCo. Recent revisions tend to reflect the latest near-term business trends. As such, positive estimate revisions reflect analyst optimism about the company's business and profitability.
Research indicates that these estimate revisions are directly correlated with near-term share price momentum. 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.
The Zacks Rank system ranges from #1 (Strong Buy) to #5 (Strong Sell). It has a remarkable, outside-audited track record of success, with #1 stocks delivering an average annual return of +25% since 1988. The Zacks Consensus EPS estimate remained stagnant within the past month. PepsiCo is currently sporting a Zacks Rank of #2 (Buy).
In terms of valuation, PepsiCo is currently trading at a Forward P/E ratio of 25.52. This valuation marks a premium compared to its industry's average Forward P/E of 23.4.
It is also worth noting that PEP currently has a PEG ratio of 3.25. 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. PEP's industry had an average PEG ratio of 2.5 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 42, which puts it in the top 17% of all 250+ industries.
The Zacks Industry Rank gauges the strength of our 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.
To follow PEP in the coming trading sessions, be sure to utilize Zacks.com.