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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 $165.73, marking a +0.3% move from the previous day. This move lagged the S&P 500's daily gain of 0.71%. At the same time, the Dow added 0.27%, and the tech-heavy Nasdaq gained 0.14%.
Prior to today's trading, shares of the food and beverage company had lost 1.86% over the past month. This has was narrower than the Consumer Staples sector's loss of 2.51% and lagged the S&P 500's gain of 3.76% in that time.
Wall Street will be looking for positivity from PepsiCo as it approaches its next earnings report date. This is expected to be April 26, 2022. The company is expected to report EPS of $1.25, up 3.31% from the prior-year quarter. Meanwhile, our latest consensus estimate is calling for revenue of $15.63 billion, up 5.49% from the prior-year quarter.
For the full year, our Zacks Consensus Estimates are projecting earnings of $6.69 per share and revenue of $82.48 billion, which would represent changes of +6.87% and +3.78%, respectively, from the prior year.
Investors should also note any recent changes to analyst estimates for PepsiCo. These revisions help to show the ever-changing nature of near-term business trends. With this in mind, we can consider positive estimate revisions a sign of optimism about the company's business outlook.
Based on our research, we believe these estimate revisions are directly related to near-team stock moves. Investors can capitalize on this by using the Zacks Rank. This model considers these estimate changes and provides a simple, 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 has moved 0.3% lower within the past month. PepsiCo is currently a Zacks Rank #4 (Sell).
Valuation is also important, so investors should note that PepsiCo has a Forward P/E ratio of 24.7 right now. For comparison, its industry has an average Forward P/E of 23.03, which means PepsiCo is trading at a premium to the group.
We can also see that PEP currently has a PEG ratio of 3.26. 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 2.7 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 186, putting it in the bottom 27% 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.
Be sure to follow all of these stock-moving metrics, and many 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 $165.73, marking a +0.3% move from the previous day. This move lagged the S&P 500's daily gain of 0.71%. At the same time, the Dow added 0.27%, and the tech-heavy Nasdaq gained 0.14%.
Prior to today's trading, shares of the food and beverage company had lost 1.86% over the past month. This has was narrower than the Consumer Staples sector's loss of 2.51% and lagged the S&P 500's gain of 3.76% in that time.
Wall Street will be looking for positivity from PepsiCo as it approaches its next earnings report date. This is expected to be April 26, 2022. The company is expected to report EPS of $1.25, up 3.31% from the prior-year quarter. Meanwhile, our latest consensus estimate is calling for revenue of $15.63 billion, up 5.49% from the prior-year quarter.
For the full year, our Zacks Consensus Estimates are projecting earnings of $6.69 per share and revenue of $82.48 billion, which would represent changes of +6.87% and +3.78%, respectively, from the prior year.
Investors should also note any recent changes to analyst estimates for PepsiCo. These revisions help to show the ever-changing nature of near-term business trends. With this in mind, we can consider positive estimate revisions a sign of optimism about the company's business outlook.
Based on our research, we believe these estimate revisions are directly related to near-team stock moves. Investors can capitalize on this by using the Zacks Rank. This model considers these estimate changes and provides a simple, 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 has moved 0.3% lower within the past month. PepsiCo is currently a Zacks Rank #4 (Sell).
Valuation is also important, so investors should note that PepsiCo has a Forward P/E ratio of 24.7 right now. For comparison, its industry has an average Forward P/E of 23.03, which means PepsiCo is trading at a premium to the group.
We can also see that PEP currently has a PEG ratio of 3.26. 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 2.7 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 186, putting it in the bottom 27% 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.
Be sure to follow all of these stock-moving metrics, and many more, on Zacks.com.