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PepsiCo (PEP) Registers a Bigger Fall Than the Market: Important Facts to Note

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PepsiCo (PEP - Free Report) closed the latest trading day at $147.15, indicating a -0.65% change from the previous session's end. This change lagged the S&P 500's 0.22% loss on the day. Meanwhile, the Dow lost 0.03%, and the Nasdaq, a tech-heavy index, lost 0.33%.

The the stock of food and beverage company has risen by 1.58% in the past month, lagging the Consumer Staples sector's gain of 2.67% and overreaching the S&P 500's loss of 7.48%.

Investors will be eagerly watching for the performance of PepsiCo in its upcoming earnings disclosure. The company's earnings report is set to be unveiled on April 24, 2025. In that report, analysts expect PepsiCo to post earnings of $1.53 per share. This would mark a year-over-year decline of 4.97%. Meanwhile, our latest consensus estimate is calling for revenue of $17.8 billion, down 2.45% from the prior-year quarter.

For the full year, the Zacks Consensus Estimates are projecting earnings of $8.29 per share and revenue of $91.79 billion, which would represent changes of +1.59% and -0.07%, respectively, from the prior year.

It is also important to note the recent changes to analyst estimates for PepsiCo. These revisions typically reflect the latest short-term business trends, which can change frequently. As such, positive estimate revisions reflect analyst optimism about the company's business and profitability.

Research indicates that these estimate revisions are directly correlated with near-term share price momentum. To capitalize on this, we've crafted the Zacks Rank, a unique model that incorporates these estimate changes and offers a practical rating system.

The Zacks Rank system ranges from #1 (Strong Buy) to #5 (Strong Sell). It has a remarkable, outside-audited track record of success, with #1 stocks delivering an average annual return of +25% since 1988. Within the past 30 days, our consensus EPS projection has moved 0.58% lower. As of now, PepsiCo holds a Zacks Rank of #4 (Sell).

From a valuation perspective, PepsiCo is currently exchanging hands at a Forward P/E ratio of 17.86. This expresses a discount compared to the average Forward P/E of 19 of its industry.

Also, we should mention that PEP has a PEG ratio of 3.12. Comparable to the widely accepted P/E ratio, the PEG ratio also accounts for the company's projected earnings growth. The Beverages - Soft drinks industry currently had an average PEG ratio of 2.58 as of yesterday's close.

The Beverages - Soft drinks industry is part of the Consumer Staples sector. Currently, this industry holds a Zacks Industry Rank of 86, positioning it in the top 35% of all 250+ industries.

The Zacks Industry Rank is ordered from best to worst in terms of the average Zacks Rank of the individual companies within each of these sectors. 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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