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PepsiCo (PEP) Stock Sinks As Market Gains: What You Should Know
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PepsiCo (PEP - Free Report) closed the most recent trading day at $141.45, moving -0.76% from the previous trading session. This change lagged the S&P 500's daily gain of 0.36%. At the same time, the Dow lost 0.26%, and the tech-heavy Nasdaq gained 1.54%.
Heading into today, shares of the food and beverage company had gained 8.75% over the past month, lagging the Consumer Staples sector's gain of 8.94% and outpacing the S&P 500's gain of 4.14% in that time.
Wall Street will be looking for positivity from PEP as it approaches its next earnings report date. This is expected to be April 15, 2021. In that report, analysts expect PEP to post earnings of $1.12 per share. This would mark 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.
For the full year, our Zacks Consensus Estimates are projecting earnings of $6.04 per share and revenue of $75.23 billion, which would represent changes of +9.42% and +6.9%, respectively, from the prior year.
Investors should also note any recent changes to analyst estimates for PEP. Recent revisions tend to reflect the latest near-term business trends. 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. 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.
Ranging from #1 (Strong Buy) to #5 (Strong Sell), the Zacks Rank system has a proven, outside-audited track record of outperformance, with #1 stocks returning an average of +25% annually since 1988. The Zacks Consensus EPS estimate remained stagnant within the past month. PEP is currently sporting a Zacks Rank of #3 (Hold).
Looking at its valuation, PEP is holding a Forward P/E ratio of 23.59. This valuation marks a premium compared to its industry's average Forward P/E of 22.69.
It is also worth noting that PEP currently has a PEG ratio of 3.4. 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 was holding an average PEG ratio of 2.82 at yesterday's closing price.
The Beverages - Soft drinks industry is part of the Consumer Staples sector. This industry currently has a Zacks Industry Rank of 104, which puts it in the top 41% 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.
To follow PEP in the coming trading sessions, be sure to utilize Zacks.com.
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PepsiCo (PEP) Stock Sinks As Market Gains: What You Should Know
PepsiCo (PEP - Free Report) closed the most recent trading day at $141.45, moving -0.76% from the previous trading session. This change lagged the S&P 500's daily gain of 0.36%. At the same time, the Dow lost 0.26%, and the tech-heavy Nasdaq gained 1.54%.
Heading into today, shares of the food and beverage company had gained 8.75% over the past month, lagging the Consumer Staples sector's gain of 8.94% and outpacing the S&P 500's gain of 4.14% in that time.
Wall Street will be looking for positivity from PEP as it approaches its next earnings report date. This is expected to be April 15, 2021. In that report, analysts expect PEP to post earnings of $1.12 per share. This would mark 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.
For the full year, our Zacks Consensus Estimates are projecting earnings of $6.04 per share and revenue of $75.23 billion, which would represent changes of +9.42% and +6.9%, respectively, from the prior year.
Investors should also note any recent changes to analyst estimates for PEP. Recent revisions tend to reflect the latest near-term business trends. 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. 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.
Ranging from #1 (Strong Buy) to #5 (Strong Sell), the Zacks Rank system has a proven, outside-audited track record of outperformance, with #1 stocks returning an average of +25% annually since 1988. The Zacks Consensus EPS estimate remained stagnant within the past month. PEP is currently sporting a Zacks Rank of #3 (Hold).
Looking at its valuation, PEP is holding a Forward P/E ratio of 23.59. This valuation marks a premium compared to its industry's average Forward P/E of 22.69.
It is also worth noting that PEP currently has a PEG ratio of 3.4. 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 was holding an average PEG ratio of 2.82 at yesterday's closing price.
The Beverages - Soft drinks industry is part of the Consumer Staples sector. This industry currently has a Zacks Industry Rank of 104, which puts it in the top 41% 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.
To follow PEP in the coming trading sessions, be sure to utilize Zacks.com.