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PepsiCo (PEP) Stock Moves -0.31%: What You Should Know

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In the latest trading session, PepsiCo (PEP - Free Report) closed at $186.07, marking a -0.31% move from the previous day. This change was narrower than the S&P 500's 1.12% loss on the day. At the same time, the Dow lost 0.69%, and the tech-heavy Nasdaq lost 3.35%.

Coming into today, shares of the food and beverage company had gained 0.61% in the past month. In that same time, the Consumer Staples sector lost 2.43%, while the S&P 500 gained 1.61%.

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 $1.95 per share. This would mark year-over-year growth of 4.84%. Our most recent consensus estimate is calling for quarterly revenue of $21.63 billion, up 6.97% from the year-ago period.

For the full year, our Zacks Consensus Estimates are projecting earnings of $7.30 per share and revenue of $90.66 billion, which would represent changes of +7.51% and +4.94%, respectively, from the prior year.

It is also important to note the 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.

Our research shows that these estimate changes are directly correlated with near-term stock prices. 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.

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 0.89% higher within the past month. PepsiCo currently has a Zacks Rank of #2 (Buy).

Looking at its valuation, PepsiCo is holding a Forward P/E ratio of 25.58. Its industry sports an average Forward P/E of 22.6, so we one might conclude that PepsiCo is trading at a premium comparatively.

Investors should also note that PEP has a PEG ratio of 3.26 right now. 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 was holding an average PEG ratio of 2.53 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 25, putting it in the top 10% 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.

Be sure to follow all of these stock-moving metrics, and many more, on

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