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) Gains As Market Dips: What You Should Know
Read MoreHide Full Article
PepsiCo (PEP - Free Report) closed the most recent trading day at $173.23, moving +0.14% from the previous trading session. This change outpaced the S&P 500's 0.06% loss on the day. Elsewhere, the Dow gained 0.59%, while the tech-heavy Nasdaq lost 0.3%.
Heading into today, shares of the food and beverage company had gained 3.94% over the past month, lagging the Consumer Staples sector's gain of 7.83% and the S&P 500's gain of 5.76% in that time.
Investors will be hoping for strength from PepsiCo as it approaches its next earnings release, which is expected to be February 10, 2022. In that report, analysts expect PepsiCo to post earnings of $1.52 per share. This would mark year-over-year growth of 3.4%. Meanwhile, our latest consensus estimate is calling for revenue of $24.32 billion, up 8.29% from the prior-year quarter.
It is also important to note the recent changes to analyst estimates for PepsiCo. 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.
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. Within the past 30 days, our consensus EPS projection remained stagnant. PepsiCo is currently a Zacks Rank #3 (Hold).
In terms of valuation, PepsiCo is currently trading at a Forward P/E ratio of 25.66. This represents a premium compared to its industry's average Forward P/E of 21.68.
Meanwhile, PEP's PEG ratio is currently 2.93. 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 2.37 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 196, 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.
You can find more information on all of these metrics, and much more, on Zacks.com.
See More Zacks Research for These Tickers
Normally $25 each - click below to receive one report FREE:
Image: Bigstock
PepsiCo (PEP) Gains As Market Dips: What You Should Know
PepsiCo (PEP - Free Report) closed the most recent trading day at $173.23, moving +0.14% from the previous trading session. This change outpaced the S&P 500's 0.06% loss on the day. Elsewhere, the Dow gained 0.59%, while the tech-heavy Nasdaq lost 0.3%.
Heading into today, shares of the food and beverage company had gained 3.94% over the past month, lagging the Consumer Staples sector's gain of 7.83% and the S&P 500's gain of 5.76% in that time.
Investors will be hoping for strength from PepsiCo as it approaches its next earnings release, which is expected to be February 10, 2022. In that report, analysts expect PepsiCo to post earnings of $1.52 per share. This would mark year-over-year growth of 3.4%. Meanwhile, our latest consensus estimate is calling for revenue of $24.32 billion, up 8.29% from the prior-year quarter.
It is also important to note the recent changes to analyst estimates for PepsiCo. 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.
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. Within the past 30 days, our consensus EPS projection remained stagnant. PepsiCo is currently a Zacks Rank #3 (Hold).
In terms of valuation, PepsiCo is currently trading at a Forward P/E ratio of 25.66. This represents a premium compared to its industry's average Forward P/E of 21.68.
Meanwhile, PEP's PEG ratio is currently 2.93. 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 2.37 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 196, 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.
You can find more information on all of these metrics, and much more, on Zacks.com.