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PepsiCo (PEP) Gains As Market Dips: What You Should Know
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PepsiCo (PEP - Free Report) closed at $146.93 in the latest trading session, marking a +0.84% move from the prior day. The stock outpaced the S&P 500's daily loss of 0.35%. Meanwhile, the Dow lost 0.41%, and the Nasdaq, a tech-heavy index, lost 0.07%.
Coming into today, shares of the food and beverage company had gained 1.67% in the past month. In that same time, the Consumer Staples sector gained 2.63%, while the S&P 500 gained 3.21%.
PEP will be looking to display strength as it nears its next earnings release, which is expected to be February 11, 2021. The company is expected to report EPS of $1.45, unchanged from the prior-year quarter. Our most recent consensus estimate is calling for quarterly revenue of $21.94 billion, up 6.3% from the year-ago period.
Looking at the full year, our Zacks Consensus Estimates suggest analysts are expecting earnings of $5.51 per share and revenue of $69.86 billion. These totals would mark changes of -0.36% and +4.02%, respectively, from last year.
Investors should also note any recent changes to analyst estimates for PEP. These revisions typically reflect the latest short-term business trends, which can change frequently. 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. 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. The Zacks Consensus EPS estimate has moved 0.02% higher within the past month. PEP currently has a Zacks Rank of #3 (Hold).
Investors should also note PEP's current valuation metrics, including its Forward P/E ratio of 26.44. For comparison, its industry has an average Forward P/E of 24.13, which means PEP is trading at a premium to the group.
Investors should also note that PEP has a PEG ratio of 4.07 right now. 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. PEP's industry had an average PEG ratio of 4.18 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 210, which puts it in the bottom 18% 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.
Be sure to follow all of these stock-moving metrics, and many more, on Zacks.com.
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PepsiCo (PEP) Gains As Market Dips: What You Should Know
PepsiCo (PEP - Free Report) closed at $146.93 in the latest trading session, marking a +0.84% move from the prior day. The stock outpaced the S&P 500's daily loss of 0.35%. Meanwhile, the Dow lost 0.41%, and the Nasdaq, a tech-heavy index, lost 0.07%.
Coming into today, shares of the food and beverage company had gained 1.67% in the past month. In that same time, the Consumer Staples sector gained 2.63%, while the S&P 500 gained 3.21%.
PEP will be looking to display strength as it nears its next earnings release, which is expected to be February 11, 2021. The company is expected to report EPS of $1.45, unchanged from the prior-year quarter. Our most recent consensus estimate is calling for quarterly revenue of $21.94 billion, up 6.3% from the year-ago period.
Looking at the full year, our Zacks Consensus Estimates suggest analysts are expecting earnings of $5.51 per share and revenue of $69.86 billion. These totals would mark changes of -0.36% and +4.02%, respectively, from last year.
Investors should also note any recent changes to analyst estimates for PEP. These revisions typically reflect the latest short-term business trends, which can change frequently. 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. 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. The Zacks Consensus EPS estimate has moved 0.02% higher within the past month. PEP currently has a Zacks Rank of #3 (Hold).
Investors should also note PEP's current valuation metrics, including its Forward P/E ratio of 26.44. For comparison, its industry has an average Forward P/E of 24.13, which means PEP is trading at a premium to the group.
Investors should also note that PEP has a PEG ratio of 4.07 right now. 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. PEP's industry had an average PEG ratio of 4.18 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 210, which puts it in the bottom 18% 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.
Be sure to follow all of these stock-moving metrics, and many more, on Zacks.com.