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PepsiCo (PEP) Sees a More Significant Dip Than Broader Market: Some Facts to Know
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PepsiCo (PEP - Free Report) closed the latest trading day at $169.40, indicating a -0.31% change from the previous session's end. This change lagged the S&P 500's 0.19% loss on the day. Meanwhile, the Dow experienced a drop of 0.7%, and the technology-dominated Nasdaq saw an increase of 0.04%.
Prior to today's trading, shares of the food and beverage company had lost 3.07% over the past month. This has lagged the Consumer Staples sector's gain of 2.38% and the S&P 500's gain of 1.95% in that time.
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 October 8, 2024. The company's earnings per share (EPS) are projected to be $2.31, reflecting a 2.67% increase from the same quarter last year. Meanwhile, the Zacks Consensus Estimate for revenue is projecting net sales of $23.95 billion, up 2.11% from the year-ago period.
Regarding the entire year, the Zacks Consensus Estimates forecast earnings of $8.15 per share and revenue of $93.77 billion, indicating changes of +6.96% and +2.51%, respectively, compared to the previous year.
Investors should also take note of any recent adjustments to analyst estimates for PepsiCo. Recent revisions tend to reflect the latest near-term business trends. Consequently, upward revisions in estimates express analysts' positivity towards the company's business operations and its ability to generate profits.
Research indicates that these estimate revisions are directly correlated with near-term share price momentum. Investors can capitalize on this by using the Zacks Rank. This model considers these estimate changes and provides a simple, 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. Within the past 30 days, our consensus EPS projection has moved 0.04% lower. PepsiCo is holding a Zacks Rank of #3 (Hold) right now.
In terms of valuation, PepsiCo is currently trading at a Forward P/E ratio of 20.86. This valuation marks a premium compared to its industry's average Forward P/E of 19.66.
It's also important to note that PEP currently trades at a PEG ratio of 2.93. 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. As of the close of trade yesterday, the Beverages - Soft drinks industry held an average PEG ratio of 2.89.
The Beverages - Soft drinks industry is part of the Consumer Staples sector. At present, this industry carries a Zacks Industry Rank of 154, placing it within the bottom 40% of over 250 industries.
The strength of our individual industry groups is measured by the Zacks Industry Rank, which is calculated based on the average Zacks Rank of the individual stocks within these groups. Our research shows that the top 50% rated industries outperform the bottom half by a factor of 2 to 1.
You can find more information on all of these metrics, and much more, on Zacks.com.
View the Zacks #1 Rank List
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PepsiCo (PEP) Sees a More Significant Dip Than Broader Market: Some Facts to Know
PepsiCo (PEP - Free Report) closed the latest trading day at $169.40, indicating a -0.31% change from the previous session's end. This change lagged the S&P 500's 0.19% loss on the day. Meanwhile, the Dow experienced a drop of 0.7%, and the technology-dominated Nasdaq saw an increase of 0.04%.
Prior to today's trading, shares of the food and beverage company had lost 3.07% over the past month. This has lagged the Consumer Staples sector's gain of 2.38% and the S&P 500's gain of 1.95% in that time.
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 October 8, 2024. The company's earnings per share (EPS) are projected to be $2.31, reflecting a 2.67% increase from the same quarter last year. Meanwhile, the Zacks Consensus Estimate for revenue is projecting net sales of $23.95 billion, up 2.11% from the year-ago period.
Regarding the entire year, the Zacks Consensus Estimates forecast earnings of $8.15 per share and revenue of $93.77 billion, indicating changes of +6.96% and +2.51%, respectively, compared to the previous year.
Investors should also take note of any recent adjustments to analyst estimates for PepsiCo. Recent revisions tend to reflect the latest near-term business trends. Consequently, upward revisions in estimates express analysts' positivity towards the company's business operations and its ability to generate profits.
Research indicates that these estimate revisions are directly correlated with near-term share price momentum. Investors can capitalize on this by using the Zacks Rank. This model considers these estimate changes and provides a simple, 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. Within the past 30 days, our consensus EPS projection has moved 0.04% lower. PepsiCo is holding a Zacks Rank of #3 (Hold) right now.
In terms of valuation, PepsiCo is currently trading at a Forward P/E ratio of 20.86. This valuation marks a premium compared to its industry's average Forward P/E of 19.66.
It's also important to note that PEP currently trades at a PEG ratio of 2.93. 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. As of the close of trade yesterday, the Beverages - Soft drinks industry held an average PEG ratio of 2.89.
The Beverages - Soft drinks industry is part of the Consumer Staples sector. At present, this industry carries a Zacks Industry Rank of 154, placing it within the bottom 40% of over 250 industries.
The strength of our individual industry groups is measured by the Zacks Industry Rank, which is calculated based on the average Zacks Rank of the individual stocks within these groups. Our research shows that the top 50% rated industries outperform the bottom half by a factor of 2 to 1.
You can find more information on all of these metrics, and much more, on Zacks.com.