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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 $166.97, marking a +0.77% move from the previous day. The stock fell short of the S&P 500, which registered a gain of 1.03% for the day. Meanwhile, the Dow experienced a rise of 0.87%, and the technology-dominated Nasdaq saw an increase of 1.26%.

Shares of the food and beverage company witnessed a loss of 2.09% over the previous month, trailing the performance of the Consumer Staples sector with its gain of 1.52% and the S&P 500's gain of 3.01%.

The investment community will be closely monitoring the performance of PepsiCo in its forthcoming earnings report. The company is scheduled to release its earnings on February 9, 2024. The company's earnings per share (EPS) are projected to be $1.72, reflecting a 2.99% increase from the same quarter last year. Alongside, our most recent consensus estimate is anticipating revenue of $28.26 billion, indicating a 0.93% upward movement from the same quarter last year.

For the full year, the Zacks Consensus Estimates project earnings of $7.55 per share and a revenue of $91.88 billion, demonstrating changes of +11.19% and +6.35%, respectively, from the preceding 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. As a result, upbeat changes in estimates indicate analysts' favorable outlook on the company's business health and profitability.

Empirical research indicates that these revisions in estimates have a direct correlation with impending stock price performance. 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, spanning from #1 (Strong Buy) to #5 (Strong Sell), boasts an impressive track record of outperformance, audited externally, with #1 ranked stocks yielding an average annual return of +25% since 1988. Over the past month, there's been no change in the Zacks Consensus EPS estimate. PepsiCo currently has a Zacks Rank of #2 (Buy).

Looking at valuation, PepsiCo is presently trading at a Forward P/E ratio of 21.95. This expresses a premium compared to the average Forward P/E of 19.8 of its industry.

One should further note that PEP currently holds a PEG ratio of 2.66. 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. The Beverages - Soft drinks industry currently had an average PEG ratio of 2.32 as of yesterday's close.

The Beverages - Soft drinks industry is part of the Consumer Staples sector. This industry, currently bearing a Zacks Industry Rank of 20, finds itself in the top 8% echelons of all 250+ industries.

The Zacks Industry Rank assesses the vigor of our specific industry groups by computing the average Zacks Rank of the individual stocks incorporated in the groups. Our research shows that the top 50% rated industries outperform the bottom half by a factor of 2 to 1.

Keep in mind to rely on Zacks.com to watch all these stock-impacting metrics, and more, in the succeeding trading sessions.


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