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PepsiCo (PEP) Rises But Trails Market: What Investors Should Know

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The latest trading session saw PepsiCo (PEP - Free Report) ending at $171.86, denoting a +0.03% adjustment from its last day's close. The stock's change was less than the S&P 500's daily gain of 0.89%. Elsewhere, the Dow gained 1.03%, while the tech-heavy Nasdaq added 1.25%.

Shares of the food and beverage company witnessed a gain of 1.87% over the previous month, trailing the performance of the Consumer Staples sector with its gain of 2.54% and the S&P 500's gain of 3.56%.

The upcoming earnings release of PepsiCo will be of great interest to investors. The company's earnings report is expected on April 23, 2024. The company is predicted to post an EPS of $1.52, indicating a 1.33% growth compared to the equivalent quarter last year. Our most recent consensus estimate is calling for quarterly revenue of $18.18 billion, up 1.86% from the year-ago period.

For the full year, the Zacks Consensus Estimates project earnings of $8.15 per share and a revenue of $94.72 billion, demonstrating changes of +6.96% and +3.55%, respectively, from the preceding year.

It is also important to note the recent changes to analyst estimates for PepsiCo. These revisions help to show the ever-changing nature of near-term business trends. Therefore, positive revisions in estimates convey analysts' confidence in the company's business performance and profit potential.

Our research reveals that these estimate alterations are directly linked with the stock price performance in the near future. 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.

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 0.01% lower within the past month. Currently, PepsiCo is carrying a Zacks Rank of #3 (Hold).

With respect to valuation, PepsiCo is currently being traded at a Forward P/E ratio of 21.07. This signifies no noticeable deviation in comparison to the average Forward P/E of 21.07 for its industry.

Investors should also note that PEP has a PEG ratio of 2.69 right now. The PEG ratio is akin to the commonly utilized P/E ratio, but this measure also incorporates the company's anticipated earnings growth rate. PEP's industry had an average PEG ratio of 2.29 as of yesterday's close.

The Beverages - Soft drinks industry is part of the Consumer Staples sector. At present, this industry carries a Zacks Industry Rank of 72, placing it within the top 29% of over 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.

Remember to apply Zacks.com to follow these and more stock-moving metrics during the upcoming trading sessions.


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