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PepsiCo (PEP) Outpaces Stock Market Gains: What You Should Know
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In the latest trading session, PepsiCo (PEP - Free Report) closed at $187.35, marking a +1.04% move from the previous day. This change outpaced the S&P 500's 0.37% gain on the day. Elsewhere, the Dow lost 0.01%, while the tech-heavy Nasdaq lost 1.26%.
Heading into today, shares of the food and beverage company had gained 0.29% over the past month, outpacing the Consumer Staples sector's loss of 1.11% and lagging the S&P 500's gain of 4.31% 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 July 13, 2023. On that day, PepsiCo is projected to report earnings of $1.95 per share, which would represent year-over-year growth of 4.84%. Meanwhile, our latest consensus estimate is calling for revenue of $21.63 billion, up 6.97% from the prior-year quarter.
Looking at the full year, our Zacks Consensus Estimates suggest analysts are expecting earnings of $7.30 per share and revenue of $90.66 billion. These totals would mark changes of +7.51% and +4.94%, respectively, from last year.
Investors should also note any 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 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. The Zacks Consensus EPS estimate remained stagnant within the past month. PepsiCo is currently a Zacks Rank #2 (Buy).
Looking at its valuation, PepsiCo is holding a Forward P/E ratio of 25.41. This represents a premium compared to its industry's average Forward P/E of 23.79.
Meanwhile, PEP's PEG ratio is currently 3.24. 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 2.52 at yesterday's closing price.
The Beverages - Soft drinks industry is part of the Consumer Staples sector. This industry currently has a Zacks Industry Rank of 31, which puts it in the top 13% 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) Outpaces Stock Market Gains: What You Should Know
In the latest trading session, PepsiCo (PEP - Free Report) closed at $187.35, marking a +1.04% move from the previous day. This change outpaced the S&P 500's 0.37% gain on the day. Elsewhere, the Dow lost 0.01%, while the tech-heavy Nasdaq lost 1.26%.
Heading into today, shares of the food and beverage company had gained 0.29% over the past month, outpacing the Consumer Staples sector's loss of 1.11% and lagging the S&P 500's gain of 4.31% 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 July 13, 2023. On that day, PepsiCo is projected to report earnings of $1.95 per share, which would represent year-over-year growth of 4.84%. Meanwhile, our latest consensus estimate is calling for revenue of $21.63 billion, up 6.97% from the prior-year quarter.
Looking at the full year, our Zacks Consensus Estimates suggest analysts are expecting earnings of $7.30 per share and revenue of $90.66 billion. These totals would mark changes of +7.51% and +4.94%, respectively, from last year.
Investors should also note any 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 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. The Zacks Consensus EPS estimate remained stagnant within the past month. PepsiCo is currently a Zacks Rank #2 (Buy).
Looking at its valuation, PepsiCo is holding a Forward P/E ratio of 25.41. This represents a premium compared to its industry's average Forward P/E of 23.79.
Meanwhile, PEP's PEG ratio is currently 3.24. 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 2.52 at yesterday's closing price.
The Beverages - Soft drinks industry is part of the Consumer Staples sector. This industry currently has a Zacks Industry Rank of 31, which puts it in the top 13% 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.