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PepsiCo (PEP) Gains But Lags Market: What You Should Know
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PepsiCo (PEP - Free Report) closed the most recent trading day at $159, moving +1.99% from the previous trading session. The stock lagged the S&P 500's daily gain of 2.14%. At the same time, the Dow added 1.82%, and the tech-heavy Nasdaq lost 0.01%.
Coming into today, shares of the food and beverage company had lost 6.48% in the past month. In that same time, the Consumer Staples sector lost 7.4%, while the S&P 500 lost 5.01%.
PepsiCo will be looking to display strength as it nears its next earnings release, which is expected to be April 26, 2022. In that report, analysts expect PepsiCo to post earnings of $1.25 per share. This would mark year-over-year growth of 3.31%. Our most recent consensus estimate is calling for quarterly revenue of $15.63 billion, up 5.49% from the year-ago period.
For the full year, our Zacks Consensus Estimates are projecting earnings of $6.71 per share and revenue of $82.48 billion, which would represent changes of +7.19% and +3.78%, respectively, from the prior year.
Any recent changes to analyst estimates for PepsiCo should also be noted by investors. 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. Within the past 30 days, our consensus EPS projection has moved 0.06% lower. PepsiCo is currently a Zacks Rank #3 (Hold).
Looking at its valuation, PepsiCo is holding a Forward P/E ratio of 23.25. This valuation marks a premium compared to its industry's average Forward P/E of 21.6.
Also, we should mention that PEP has a PEG ratio of 3.07. 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. Beverages - Soft drinks stocks are, on average, holding a PEG ratio of 2.53 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 110, putting it in the top 44% 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.
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PepsiCo (PEP) Gains But Lags Market: What You Should Know
PepsiCo (PEP - Free Report) closed the most recent trading day at $159, moving +1.99% from the previous trading session. The stock lagged the S&P 500's daily gain of 2.14%. At the same time, the Dow added 1.82%, and the tech-heavy Nasdaq lost 0.01%.
Coming into today, shares of the food and beverage company had lost 6.48% in the past month. In that same time, the Consumer Staples sector lost 7.4%, while the S&P 500 lost 5.01%.
PepsiCo will be looking to display strength as it nears its next earnings release, which is expected to be April 26, 2022. In that report, analysts expect PepsiCo to post earnings of $1.25 per share. This would mark year-over-year growth of 3.31%. Our most recent consensus estimate is calling for quarterly revenue of $15.63 billion, up 5.49% from the year-ago period.
For the full year, our Zacks Consensus Estimates are projecting earnings of $6.71 per share and revenue of $82.48 billion, which would represent changes of +7.19% and +3.78%, respectively, from the prior year.
Any recent changes to analyst estimates for PepsiCo should also be noted by investors. 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. Within the past 30 days, our consensus EPS projection has moved 0.06% lower. PepsiCo is currently a Zacks Rank #3 (Hold).
Looking at its valuation, PepsiCo is holding a Forward P/E ratio of 23.25. This valuation marks a premium compared to its industry's average Forward P/E of 21.6.
Also, we should mention that PEP has a PEG ratio of 3.07. 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. Beverages - Soft drinks stocks are, on average, holding a PEG ratio of 2.53 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 110, putting it in the top 44% 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.