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PepsiCo (PEP) Dips More Than Broader Markets: What You Should Know
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PepsiCo (PEP - Free Report) closed at $171.33 in the latest trading session, marking a -1.27% move from the prior day. This change lagged the S&P 500's 0.47% loss on the day. Elsewhere, the Dow gained 0.02%, while the tech-heavy Nasdaq lost 15.51%.
Heading into today, shares of the food and beverage company had gained 1.47% over the past month, outpacing the Consumer Staples sector's loss of 2.47% and the S&P 500's loss of 2.53% in that time.
Investors will be hoping for strength from PepsiCo as it approaches its next earnings release. In that report, analysts expect PepsiCo to post earnings of $1.37 per share. This would mark year-over-year growth of 6.2%. Our most recent consensus estimate is calling for quarterly revenue of $17.11 billion, up 5.59% from the year-ago period.
For the full year, our Zacks Consensus Estimates are projecting earnings of $7.22 per share and revenue of $89.12 billion, which would represent changes of +6.33% and +3.16%, respectively, from the prior year.
It is also important to note the recent changes to analyst estimates for PepsiCo. Recent revisions tend to reflect the latest near-term business trends. 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. 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. The Zacks Consensus EPS estimate has moved 0.38% lower within the past month. PepsiCo is currently sporting a Zacks Rank of #3 (Hold).
Valuation is also important, so investors should note that PepsiCo has a Forward P/E ratio of 24.03 right now. This represents a premium compared to its industry's average Forward P/E of 23.52.
Investors should also note that PEP has a PEG ratio of 3.15 right now. The PEG ratio is similar to the widely-used P/E ratio, but this metric also takes the company's expected earnings growth rate into account. Beverages - Soft drinks stocks are, on average, holding a PEG ratio of 2.94 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 46, putting it in the top 19% 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.
Be sure to follow all of these stock-moving metrics, and many more, on Zacks.com.
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PepsiCo (PEP) Dips More Than Broader Markets: What You Should Know
PepsiCo (PEP - Free Report) closed at $171.33 in the latest trading session, marking a -1.27% move from the prior day. This change lagged the S&P 500's 0.47% loss on the day. Elsewhere, the Dow gained 0.02%, while the tech-heavy Nasdaq lost 15.51%.
Heading into today, shares of the food and beverage company had gained 1.47% over the past month, outpacing the Consumer Staples sector's loss of 2.47% and the S&P 500's loss of 2.53% in that time.
Investors will be hoping for strength from PepsiCo as it approaches its next earnings release. In that report, analysts expect PepsiCo to post earnings of $1.37 per share. This would mark year-over-year growth of 6.2%. Our most recent consensus estimate is calling for quarterly revenue of $17.11 billion, up 5.59% from the year-ago period.
For the full year, our Zacks Consensus Estimates are projecting earnings of $7.22 per share and revenue of $89.12 billion, which would represent changes of +6.33% and +3.16%, respectively, from the prior year.
It is also important to note the recent changes to analyst estimates for PepsiCo. Recent revisions tend to reflect the latest near-term business trends. 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. 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. The Zacks Consensus EPS estimate has moved 0.38% lower within the past month. PepsiCo is currently sporting a Zacks Rank of #3 (Hold).
Valuation is also important, so investors should note that PepsiCo has a Forward P/E ratio of 24.03 right now. This represents a premium compared to its industry's average Forward P/E of 23.52.
Investors should also note that PEP has a PEG ratio of 3.15 right now. The PEG ratio is similar to the widely-used P/E ratio, but this metric also takes the company's expected earnings growth rate into account. Beverages - Soft drinks stocks are, on average, holding a PEG ratio of 2.94 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 46, putting it in the top 19% 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.
Be sure to follow all of these stock-moving metrics, and many more, on Zacks.com.