The Zacks Consumer Staples market has held up better than most in 2022 as consumers continue their spending on essential items, down nearly 14% vs. the S&P 500’s decline of more than 20%.
A widely-known company in the sector, PepsiCo (PEP - Free Report) , is on deck to unveil Q3 earnings on October 12th before the market open.
PepsiCo is a long-established company engaged in the manufacturing, marketing, and distribution of grain-based snack foods, beverages, and other products. We see their snacks and drinks at seemingly every stop.
How does the beverage titan stack up heading into the print? Let’s take a closer look.
Share Performance
PepsiCo shares have been notably defensive in 2022, down roughly 5% and widely outperforming the general market.
Over the last three months, shares have continued on their market-beating trajectory, down 4.3% vs. the S&P 500’s decline of more than 5%.
The stronger price action of PEP shares relative to the general market indicates that buyers have defended the stock at a much higher level, undoubtedly a positive in 2022.
Valuation
PEP shares appear somewhat pricey; the company’s 24.3X forward earnings multiple is above its 24.1X five-year median and represents a steep 32% premium relative to its Zacks Consumer Staples sector.
Further, PepsiCo carries a Style Score of a C for Value.
Quarterly Estimates
Analysts have been bullish for the quarter to be reported, with three upwards earnings estimate revisions coming in over the last several months. The Zacks Consensus EPS Estimate of $1.85 reflects a rock-solid 3.4% Y/Y uptick in earnings.
PEP’s top line is also in exceptional shape; the Zacks Consensus Sales Estimate of $20.9 billion suggests revenue growth of 3.3% from year-ago quarterly sales of $20.2 billion.
Quarterly Performance & Market Reactions
PEP has consistently exceeded quarterly estimates, beating the Zacks Consensus EPS Estimate in nine of its last ten quarterly prints. Just in its latest print, the beverage titan penciled in a sizable 7.5% bottom line beat.
Top line results have been even more impressive; PepsiCo has chained 16 consecutive revenue beats together. Below is a chart illustrating the company’s revenue on a quarterly basis.
The market has had mixed reactions to the company’s recent quarterly reports, with shares moving upwards twice and downwards twice over its last four.
Putting Everything Together
PEP shares have been notably defensive in 2022, edging out the general market across several timeframes.
Shares trade at steep multiples, above their five-year median and Zacks Sector average.
Analysts have been bullish for the quarter to be reported, with estimates suggesting notable growth within revenue and earnings.
Further, the company has repeatedly exceeded quarterly estimates, but the market has had mixed reactions in response to its last four earnings releases.
Heading into the print, PepsiCo (PEP - Free Report) carries a Zacks Rank #3 (Hold) paired with an Earnings ESP Score of 0.4%.
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The Zacks Consumer Staples market has held up better than most in 2022 as consumers continue their spending on essential items, down nearly 14% vs. the S&P 500’s decline of more than 20%.
A widely-known company in the sector, PepsiCo (PEP - Free Report) , is on deck to unveil Q3 earnings on October 12th before the market open.
PepsiCo is a long-established company engaged in the manufacturing, marketing, and distribution of grain-based snack foods, beverages, and other products. We see their snacks and drinks at seemingly every stop.
How does the beverage titan stack up heading into the print? Let’s take a closer look.
Share Performance
PepsiCo shares have been notably defensive in 2022, down roughly 5% and widely outperforming the general market.
Over the last three months, shares have continued on their market-beating trajectory, down 4.3% vs. the S&P 500’s decline of more than 5%.
The stronger price action of PEP shares relative to the general market indicates that buyers have defended the stock at a much higher level, undoubtedly a positive in 2022.
Valuation
PEP shares appear somewhat pricey; the company’s 24.3X forward earnings multiple is above its 24.1X five-year median and represents a steep 32% premium relative to its Zacks Consumer Staples sector.
Further, PepsiCo carries a Style Score of a C for Value.
Quarterly Estimates
Analysts have been bullish for the quarter to be reported, with three upwards earnings estimate revisions coming in over the last several months. The Zacks Consensus EPS Estimate of $1.85 reflects a rock-solid 3.4% Y/Y uptick in earnings.
PEP’s top line is also in exceptional shape; the Zacks Consensus Sales Estimate of $20.9 billion suggests revenue growth of 3.3% from year-ago quarterly sales of $20.2 billion.
Quarterly Performance & Market Reactions
PEP has consistently exceeded quarterly estimates, beating the Zacks Consensus EPS Estimate in nine of its last ten quarterly prints. Just in its latest print, the beverage titan penciled in a sizable 7.5% bottom line beat.
Top line results have been even more impressive; PepsiCo has chained 16 consecutive revenue beats together. Below is a chart illustrating the company’s revenue on a quarterly basis.
The market has had mixed reactions to the company’s recent quarterly reports, with shares moving upwards twice and downwards twice over its last four.
Putting Everything Together
PEP shares have been notably defensive in 2022, edging out the general market across several timeframes.
Shares trade at steep multiples, above their five-year median and Zacks Sector average.
Analysts have been bullish for the quarter to be reported, with estimates suggesting notable growth within revenue and earnings.
Further, the company has repeatedly exceeded quarterly estimates, but the market has had mixed reactions in response to its last four earnings releases.
Heading into the print, PepsiCo (PEP - Free Report) carries a Zacks Rank #3 (Hold) paired with an Earnings ESP Score of 0.4%.
7 Best Stocks for the Next 30 Days
Just released: Experts distill 7 elite stocks from the current list of 220 Zacks Rank #1 Strong Buys. They deem these tickers "Most Likely for Early Price Pops."
Since 1988, the full list has beaten the market more than 2X over with an average gain of +24.2% per year. So be sure to give these hand picked 7 your immediate attention.
See them now >>
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