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PepsiCo (PEP) Gains But Lags Market: What You Should Know
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PepsiCo (PEP - Free Report) closed at $171.02 in the latest trading session, marking a +0.91% move from the prior day. This change lagged the S&P 500's 1.46% gain on the day. At the same time, the Dow added 1.09%, and the tech-heavy Nasdaq gained 6.63%.
Coming into today, shares of the food and beverage company had lost 6.19% in the past month. In that same time, the Consumer Staples sector lost 1.72%, while the S&P 500 gained 4.75%.
Wall Street will be looking for positivity from PepsiCo as it approaches its next earnings report date. This is expected to be February 9, 2023. On that day, PepsiCo is projected to report earnings of $1.64 per share, which would represent year-over-year growth of 7.19%. Meanwhile, the Zacks Consensus Estimate for revenue is projecting net sales of $26.81 billion, up 6.19% from the year-ago period.
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. As a result, we can interpret positive estimate revisions as a good sign for the company's business outlook.
Our research shows that these estimate changes are directly correlated with near-term stock prices. Investors can capitalize on this by using the Zacks Rank. This model considers these estimate changes and provides a simple, actionable rating system.
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. The Zacks Consensus EPS estimate has moved 0.08% higher within the past month. PepsiCo is currently a Zacks Rank #3 (Hold).
Investors should also note PepsiCo's current valuation metrics, including its Forward P/E ratio of 23.35. This represents a discount compared to its industry's average Forward P/E of 23.57.
It is also worth noting that PEP currently has a PEG ratio of 3.04. This popular metric is similar to the widely-known P/E ratio, with the difference being that the PEG ratio also takes into account the company's expected earnings growth rate. The Beverages - Soft drinks was holding an average PEG ratio of 2.87 at yesterday's closing price.
The Beverages - Soft drinks industry is part of the Consumer Staples sector. This group has a Zacks Industry Rank of 40, putting it in the top 16% of all 250+ industries.
The Zacks Industry Rank includes is listed in order from best to worst in terms of the average Zacks Rank of the individual companies within each of these sectors. Our research shows that the top 50% rated industries outperform the bottom half by a factor of 2 to 1.
Make sure to utilize Zacks.com to follow all of these stock-moving metrics, and more, in the coming trading sessions.
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PepsiCo (PEP) Gains But Lags Market: What You Should Know
PepsiCo (PEP - Free Report) closed at $171.02 in the latest trading session, marking a +0.91% move from the prior day. This change lagged the S&P 500's 1.46% gain on the day. At the same time, the Dow added 1.09%, and the tech-heavy Nasdaq gained 6.63%.
Coming into today, shares of the food and beverage company had lost 6.19% in the past month. In that same time, the Consumer Staples sector lost 1.72%, while the S&P 500 gained 4.75%.
Wall Street will be looking for positivity from PepsiCo as it approaches its next earnings report date. This is expected to be February 9, 2023. On that day, PepsiCo is projected to report earnings of $1.64 per share, which would represent year-over-year growth of 7.19%. Meanwhile, the Zacks Consensus Estimate for revenue is projecting net sales of $26.81 billion, up 6.19% from the year-ago period.
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. As a result, we can interpret positive estimate revisions as a good sign for the company's business outlook.
Our research shows that these estimate changes are directly correlated with near-term stock prices. Investors can capitalize on this by using the Zacks Rank. This model considers these estimate changes and provides a simple, actionable rating system.
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. The Zacks Consensus EPS estimate has moved 0.08% higher within the past month. PepsiCo is currently a Zacks Rank #3 (Hold).
Investors should also note PepsiCo's current valuation metrics, including its Forward P/E ratio of 23.35. This represents a discount compared to its industry's average Forward P/E of 23.57.
It is also worth noting that PEP currently has a PEG ratio of 3.04. This popular metric is similar to the widely-known P/E ratio, with the difference being that the PEG ratio also takes into account the company's expected earnings growth rate. The Beverages - Soft drinks was holding an average PEG ratio of 2.87 at yesterday's closing price.
The Beverages - Soft drinks industry is part of the Consumer Staples sector. This group has a Zacks Industry Rank of 40, putting it in the top 16% of all 250+ industries.
The Zacks Industry Rank includes is listed in order from best to worst in terms of the average Zacks Rank of the individual companies within each of these sectors. Our research shows that the top 50% rated industries outperform the bottom half by a factor of 2 to 1.
Make sure to utilize Zacks.com to follow all of these stock-moving metrics, and more, in the coming trading sessions.