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PepsiCo (PEP) Stock Drops Despite Market Gains: Important Facts to Note
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In the latest trading session, PepsiCo (PEP - Free Report) closed at $153.88, marking a -0.2% move from the previous day. The stock's performance was behind the S&P 500's daily gain of 1.12%. On the other hand, the Dow registered a gain of 1.14%, and the technology-centric Nasdaq increased by 1.46%.
Prior to today's trading, shares of the food and beverage company had gained 7.46% over the past month. This has outpaced the Consumer Staples sector's gain of 6.52% and the S&P 500's loss of 4.13% in that time.
Investors will be eagerly watching for the performance of PepsiCo in its upcoming earnings disclosure. The company is expected to report EPS of $1.53, down 4.97% from the prior-year quarter. At the same time, our most recent consensus estimate is projecting a revenue of $17.8 billion, reflecting a 2.45% fall from the equivalent quarter last year.
Looking at the full year, the Zacks Consensus Estimates suggest analysts are expecting earnings of $8.30 per share and revenue of $91.75 billion. These totals would mark changes of +1.72% and -0.11%, respectively, from last year.
Investors should also note any recent changes to analyst estimates for PepsiCo. These recent revisions tend to reflect the evolving nature of short-term business trends. Consequently, upward revisions in estimates express analysts' positivity towards the company's business operations and its ability to generate profits.
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, ranging from #1 (Strong Buy) to #5 (Strong Sell), possesses a remarkable history of outdoing, externally audited, with #1 stocks returning an average annual gain of +25% since 1988. Over the past month, the Zacks Consensus EPS estimate has moved 2.55% lower. Right now, PepsiCo possesses a Zacks Rank of #4 (Sell).
In terms of valuation, PepsiCo is currently trading at a Forward P/E ratio of 18.58. This expresses a discount compared to the average Forward P/E of 19.11 of its industry.
It's also important to note that PEP currently trades at a PEG ratio of 3.22. The PEG ratio bears resemblance to the frequently used P/E ratio, but this parameter also includes the company's expected earnings growth trajectory. The Beverages - Soft drinks industry currently had an average PEG ratio of 2.59 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 168, placing it within the bottom 34% of over 250 industries.
The Zacks Industry Rank assesses the strength of our separate industry groups by calculating the average Zacks Rank of the individual stocks contained within the groups. Our research shows that the top 50% rated industries outperform the bottom half by a factor of 2 to 1.
To follow PEP in the coming trading sessions, be sure to utilize Zacks.com.
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PepsiCo (PEP) Stock Drops Despite Market Gains: Important Facts to Note
In the latest trading session, PepsiCo (PEP - Free Report) closed at $153.88, marking a -0.2% move from the previous day. The stock's performance was behind the S&P 500's daily gain of 1.12%. On the other hand, the Dow registered a gain of 1.14%, and the technology-centric Nasdaq increased by 1.46%.
Prior to today's trading, shares of the food and beverage company had gained 7.46% over the past month. This has outpaced the Consumer Staples sector's gain of 6.52% and the S&P 500's loss of 4.13% in that time.
Investors will be eagerly watching for the performance of PepsiCo in its upcoming earnings disclosure. The company is expected to report EPS of $1.53, down 4.97% from the prior-year quarter. At the same time, our most recent consensus estimate is projecting a revenue of $17.8 billion, reflecting a 2.45% fall from the equivalent quarter last year.
Looking at the full year, the Zacks Consensus Estimates suggest analysts are expecting earnings of $8.30 per share and revenue of $91.75 billion. These totals would mark changes of +1.72% and -0.11%, respectively, from last year.
Investors should also note any recent changes to analyst estimates for PepsiCo. These recent revisions tend to reflect the evolving nature of short-term business trends. Consequently, upward revisions in estimates express analysts' positivity towards the company's business operations and its ability to generate profits.
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, ranging from #1 (Strong Buy) to #5 (Strong Sell), possesses a remarkable history of outdoing, externally audited, with #1 stocks returning an average annual gain of +25% since 1988. Over the past month, the Zacks Consensus EPS estimate has moved 2.55% lower. Right now, PepsiCo possesses a Zacks Rank of #4 (Sell).
In terms of valuation, PepsiCo is currently trading at a Forward P/E ratio of 18.58. This expresses a discount compared to the average Forward P/E of 19.11 of its industry.
It's also important to note that PEP currently trades at a PEG ratio of 3.22. The PEG ratio bears resemblance to the frequently used P/E ratio, but this parameter also includes the company's expected earnings growth trajectory. The Beverages - Soft drinks industry currently had an average PEG ratio of 2.59 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 168, placing it within the bottom 34% of over 250 industries.
The Zacks Industry Rank assesses the strength of our separate industry groups by calculating the average Zacks Rank of the individual stocks contained within the groups. Our research shows that the top 50% rated industries outperform the bottom half by a factor of 2 to 1.
To follow PEP in the coming trading sessions, be sure to utilize Zacks.com.