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PepsiCo (PEP) Gains As Market Dips: What You Should Know
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In the latest trading session, PepsiCo (PEP - Free Report) closed at $139.46, marking a +1.2% move from the previous day. This change outpaced the S&P 500's 0.76% loss on the day. At the same time, the Dow lost 0.94%, and the tech-heavy Nasdaq lost 1.12%.
Coming into today, shares of the food and beverage company had gained 4.4% in the past month. In that same time, the Consumer Staples sector gained 2.9%, while the S&P 500 gained 1.74%.
PEP will be looking to display strength as it nears its next earnings release, which is expected to be April 15, 2021. On that day, PEP is projected to report earnings of $1.12 per share, which would represent year-over-year growth of 4.67%. Meanwhile, the Zacks Consensus Estimate for revenue is projecting net sales of $14.59 billion, up 5.07% from the year-ago period.
Looking at the full year, our Zacks Consensus Estimates suggest analysts are expecting earnings of $6.04 per share and revenue of $75.23 billion. These totals would mark changes of +9.42% and +6.9%, respectively, from last year.
Investors might also notice recent changes to analyst estimates for PEP. 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. 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. Within the past 30 days, our consensus EPS projection remained stagnant. PEP is currently sporting a Zacks Rank of #3 (Hold).
Valuation is also important, so investors should note that PEP has a Forward P/E ratio of 22.8 right now. This represents a premium compared to its industry's average Forward P/E of 22.19.
Also, we should mention that PEP has a PEG ratio of 3.29. 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 2.8 as of yesterday's close.
The Beverages - Soft drinks industry is part of the Consumer Staples sector. This group has a Zacks Industry Rank of 110, putting it in the top 44% 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.
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
In the latest trading session, PepsiCo (PEP - Free Report) closed at $139.46, marking a +1.2% move from the previous day. This change outpaced the S&P 500's 0.76% loss on the day. At the same time, the Dow lost 0.94%, and the tech-heavy Nasdaq lost 1.12%.
Coming into today, shares of the food and beverage company had gained 4.4% in the past month. In that same time, the Consumer Staples sector gained 2.9%, while the S&P 500 gained 1.74%.
PEP will be looking to display strength as it nears its next earnings release, which is expected to be April 15, 2021. On that day, PEP is projected to report earnings of $1.12 per share, which would represent year-over-year growth of 4.67%. Meanwhile, the Zacks Consensus Estimate for revenue is projecting net sales of $14.59 billion, up 5.07% from the year-ago period.
Looking at the full year, our Zacks Consensus Estimates suggest analysts are expecting earnings of $6.04 per share and revenue of $75.23 billion. These totals would mark changes of +9.42% and +6.9%, respectively, from last year.
Investors might also notice recent changes to analyst estimates for PEP. 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. 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. Within the past 30 days, our consensus EPS projection remained stagnant. PEP is currently sporting a Zacks Rank of #3 (Hold).
Valuation is also important, so investors should note that PEP has a Forward P/E ratio of 22.8 right now. This represents a premium compared to its industry's average Forward P/E of 22.19.
Also, we should mention that PEP has a PEG ratio of 3.29. 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 2.8 as of yesterday's close.
The Beverages - Soft drinks industry is part of the Consumer Staples sector. This group has a Zacks Industry Rank of 110, putting it in the top 44% 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.
Be sure to follow all of these stock-moving metrics, and many more, on Zacks.com.