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PepsiCo (PEP) Gains But Lags Market: What You Should Know
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In the latest trading session, PepsiCo (PEP - Free Report) closed at $172.67, marking a +1.95% move from the previous day. The stock lagged the S&P 500's daily gain of 2.44%. At the same time, the Dow added 1.65%, and the tech-heavy Nasdaq gained 0.28%.
Prior to today's trading, shares of the food and beverage company had lost 1.91% over the past month. This has lagged the Consumer Staples sector's loss of 1.73% and was narrower than the S&P 500's loss of 9.65% in that time.
PepsiCo will be looking to display strength as it nears its next earnings release, which is expected to be February 10, 2022. In that report, analysts expect PepsiCo to post earnings of $1.53 per share. This would mark year-over-year growth of 4.08%. Our most recent consensus estimate is calling for quarterly revenue of $24.35 billion, up 8.45% from the year-ago period.
Investors might also notice recent changes to analyst estimates for PepsiCo. 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.
Research indicates that these estimate revisions are directly correlated with near-term share price momentum. 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.
The Zacks Rank system ranges from #1 (Strong Buy) to #5 (Strong Sell). It has a remarkable, outside-audited track record of success, with #1 stocks delivering an average annual return of +25% since 1988. The Zacks Consensus EPS estimate has moved 0.04% lower within the past month. PepsiCo is holding a Zacks Rank of #4 (Sell) right now.
In terms of valuation, PepsiCo is currently trading at a Forward P/E ratio of 25.15. Its industry sports an average Forward P/E of 22.23, so we one might conclude that PepsiCo is trading at a premium comparatively.
Meanwhile, PEP's PEG ratio is currently 2.97. 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. PEP's industry had an average PEG ratio of 2.05 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 229, putting it in the bottom 11% 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.
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PepsiCo (PEP) Gains But Lags Market: What You Should Know
In the latest trading session, PepsiCo (PEP - Free Report) closed at $172.67, marking a +1.95% move from the previous day. The stock lagged the S&P 500's daily gain of 2.44%. At the same time, the Dow added 1.65%, and the tech-heavy Nasdaq gained 0.28%.
Prior to today's trading, shares of the food and beverage company had lost 1.91% over the past month. This has lagged the Consumer Staples sector's loss of 1.73% and was narrower than the S&P 500's loss of 9.65% in that time.
PepsiCo will be looking to display strength as it nears its next earnings release, which is expected to be February 10, 2022. In that report, analysts expect PepsiCo to post earnings of $1.53 per share. This would mark year-over-year growth of 4.08%. Our most recent consensus estimate is calling for quarterly revenue of $24.35 billion, up 8.45% from the year-ago period.
Investors might also notice recent changes to analyst estimates for PepsiCo. 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.
Research indicates that these estimate revisions are directly correlated with near-term share price momentum. 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.
The Zacks Rank system ranges from #1 (Strong Buy) to #5 (Strong Sell). It has a remarkable, outside-audited track record of success, with #1 stocks delivering an average annual return of +25% since 1988. The Zacks Consensus EPS estimate has moved 0.04% lower within the past month. PepsiCo is holding a Zacks Rank of #4 (Sell) right now.
In terms of valuation, PepsiCo is currently trading at a Forward P/E ratio of 25.15. Its industry sports an average Forward P/E of 22.23, so we one might conclude that PepsiCo is trading at a premium comparatively.
Meanwhile, PEP's PEG ratio is currently 2.97. 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. PEP's industry had an average PEG ratio of 2.05 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 229, putting it in the bottom 11% 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.