We use cookies to understand how you use our site and to improve your experience. This includes personalizing content and advertising. To learn more, click here. By continuing to use our site, you accept our use of cookies, revised Privacy Policy and Terms of Service.
You are being directed to ZacksTrade, a division of LBMZ Securities and licensed broker-dealer. ZacksTrade and Zacks.com are separate companies. The web link between the two companies is not a solicitation or offer to invest in a particular security or type of security. ZacksTrade does not endorse or adopt any particular investment strategy, any analyst opinion/rating/report or any approach to evaluating individual securities.
If you wish to go to ZacksTrade, click OK. If you do not, click Cancel.
PepsiCo (PEP) Outpaces Stock Market Gains: What You Should Know
Read MoreHide Full Article
PepsiCo (PEP - Free Report) closed at $158.91 in the latest trading session, marking a +1.68% move from the prior day. This move outpaced the S&P 500's daily gain of 0.13%.
Prior to today's trading, shares of the food and beverage company had gained 0.67% over the past month. This has outpaced the Consumer Staples sector's loss of 1.24% and lagged the S&P 500's gain of 1.82% in that time.
Investors will be hoping for strength from PEP as it approaches its next earnings release, which is expected to be October 5, 2021. In that report, analysts expect PEP to post earnings of $1.72 per share. This would mark year-over-year growth of 3.61%. Meanwhile, our latest consensus estimate is calling for revenue of $19.37 billion, up 7.08% from the prior-year quarter.
PEP's full-year Zacks Consensus Estimates are calling for earnings of $6.24 per share and revenue of $77.21 billion. These results would represent year-over-year changes of +13.04% and +9.71%, respectively.
Any recent changes to analyst estimates for PEP should also be noted by investors. These recent revisions tend to reflect the evolving nature of short-term business trends. As such, positive estimate revisions reflect analyst optimism about the company's business and profitability.
Our research shows that these estimate changes are directly correlated with near-term stock prices. 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 25.06. Its industry sports an average Forward P/E of 23.47, so we one might conclude that PEP is trading at a premium comparatively.
Investors should also note that PEP has a PEG ratio of 2.97 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. Beverages - Soft drinks stocks are, on average, holding a PEG ratio of 2.45 based on yesterday's closing prices.
The Beverages - Soft drinks industry is part of the Consumer Staples sector. This group has a Zacks Industry Rank of 217, putting it in the bottom 15% of all 250+ industries.
The Zacks Industry Rank gauges the strength of our 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.
To follow PEP in the coming trading sessions, be sure to utilize Zacks.com.
See More Zacks Research for These Tickers
Normally $25 each - click below to receive one report FREE:
Image: Bigstock
PepsiCo (PEP) Outpaces Stock Market Gains: What You Should Know
PepsiCo (PEP - Free Report) closed at $158.91 in the latest trading session, marking a +1.68% move from the prior day. This move outpaced the S&P 500's daily gain of 0.13%.
Prior to today's trading, shares of the food and beverage company had gained 0.67% over the past month. This has outpaced the Consumer Staples sector's loss of 1.24% and lagged the S&P 500's gain of 1.82% in that time.
Investors will be hoping for strength from PEP as it approaches its next earnings release, which is expected to be October 5, 2021. In that report, analysts expect PEP to post earnings of $1.72 per share. This would mark year-over-year growth of 3.61%. Meanwhile, our latest consensus estimate is calling for revenue of $19.37 billion, up 7.08% from the prior-year quarter.
PEP's full-year Zacks Consensus Estimates are calling for earnings of $6.24 per share and revenue of $77.21 billion. These results would represent year-over-year changes of +13.04% and +9.71%, respectively.
Any recent changes to analyst estimates for PEP should also be noted by investors. These recent revisions tend to reflect the evolving nature of short-term business trends. As such, positive estimate revisions reflect analyst optimism about the company's business and profitability.
Our research shows that these estimate changes are directly correlated with near-term stock prices. 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 25.06. Its industry sports an average Forward P/E of 23.47, so we one might conclude that PEP is trading at a premium comparatively.
Investors should also note that PEP has a PEG ratio of 2.97 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. Beverages - Soft drinks stocks are, on average, holding a PEG ratio of 2.45 based on yesterday's closing prices.
The Beverages - Soft drinks industry is part of the Consumer Staples sector. This group has a Zacks Industry Rank of 217, putting it in the bottom 15% of all 250+ industries.
The Zacks Industry Rank gauges the strength of our 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.
To follow PEP in the coming trading sessions, be sure to utilize Zacks.com.