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PepsiCo (PEP) Stock Sinks As Market Gains: What You Should Know

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PepsiCo (PEP - Free Report) closed at $182.19 in the latest trading session, marking a -0.5% move from the prior day. This change lagged the S&P 500's daily gain of 0.12%. Elsewhere, the Dow gained 0.34%, while the tech-heavy Nasdaq lost 0.07%.

Shares of the food and beverage company have appreciated by 6.29% over the course of the past month, underperforming the Consumer Staples sector's gain of 8.15% and outperforming the S&P 500's gain of 4.99%.

The investment community will be paying close attention to the earnings performance of PepsiCo in its upcoming release. The company is forecasted to report an EPS of $2.16, showcasing a 3.35% upward movement from the corresponding quarter of the prior year. Simultaneously, our latest consensus estimate expects the revenue to be $22.68 billion, showing a 1.59% escalation compared to the year-ago quarter.

For the entire fiscal year, the Zacks Consensus Estimates are projecting earnings of $8.17 per share and a revenue of $94.55 billion, representing changes of +7.22% and +3.37%, respectively, from the prior year.

It's also important for investors to be aware of any recent modifications 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. To take advantage of this, we've established the Zacks Rank, an exclusive model that considers these estimated changes and delivers an operational rating system.

The Zacks Rank system, running from #1 (Strong Buy) to #5 (Strong Sell), holds an admirable track record of superior performance, independently audited, with #1 stocks contributing an average annual return of +25% since 1988. Over the past month, the Zacks Consensus EPS estimate has shifted 0.14% upward. Right now, PepsiCo possesses a Zacks Rank of #2 (Buy).

Digging into valuation, PepsiCo currently has a Forward P/E ratio of 22.42. This valuation marks a premium compared to its industry's average Forward P/E of 20.09.

One should further note that PEP currently holds a PEG ratio of 2.99. The PEG ratio is akin to the commonly utilized P/E ratio, but this measure also incorporates the company's anticipated earnings growth rate. By the end of yesterday's trading, the Beverages - Soft drinks industry had an average PEG ratio of 2.59.

The Beverages - Soft drinks industry is part of the Consumer Staples sector. This industry currently has a Zacks Industry Rank of 92, which puts it in the top 37% of all 250+ industries.

The Zacks Industry Rank evaluates the power of our distinct industry groups by determining the average Zacks Rank of the individual stocks forming 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 to follow these and more stock-moving metrics during the upcoming trading sessions.

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