PepsiCo (PEP - Free Report) closed at $134.98 in the latest trading session, marking a -0.47% move from the prior day. This change lagged the S&P 500's 0.46% loss on the day. At the same time, the Dow added 0.13%, and the tech-heavy Nasdaq lost 1.25%.
Heading into today, shares of the food and beverage company had lost 1.8% over the past month, lagging the Consumer Staples sector's gain of 0.67% and the S&P 500's gain of 1% in that time.
Investors will be hoping for strength from PEP as it approaches its next earnings release, which is expected to be October 1, 2020. In that report, analysts expect PEP to post earnings of $1.47 per share. This would mark a year-over-year decline of 5.77%. Meanwhile, the Zacks Consensus Estimate for revenue is projecting net sales of $17.26 billion, up 0.41% from the year-ago period.
Looking at the full year, our Zacks Consensus Estimates suggest analysts are expecting earnings of $5.34 per share and revenue of $68.31 billion. These totals would mark changes of -3.44% and +1.72%, respectively, from last year.
Any recent changes to analyst estimates for PEP should also be noted by investors. These revisions help to show the ever-changing nature of near-term business trends. With this in mind, we can consider positive estimate revisions a sign of optimism about the company's business outlook.
Our research shows that these estimate changes are directly correlated with near-term stock prices. 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 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. Over the past month, the Zacks Consensus EPS estimate remained stagnant. PEP currently has a Zacks Rank of #3 (Hold).
Valuation is also important, so investors should note that PEP has a Forward P/E ratio of 25.38 right now. This represents a premium compared to its industry's average Forward P/E of 23.39.
We can also see that PEP currently has a PEG ratio of 4.53. The PEG ratio is similar to the widely-used P/E ratio, but this metric also takes the company's expected earnings growth rate into account. The Beverages - Soft drinks was holding an average PEG ratio of 4.53 at yesterday's closing price.
The Beverages - Soft drinks industry is part of the Consumer Staples sector. This group has a Zacks Industry Rank of 195, putting it in the bottom 24% of all 250+ industries.
The Zacks Industry Rank gauges the strength of our individual 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.
Make sure to utilize Zacks. Com to follow all of these stock-moving metrics, and more, in the coming trading sessions.