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PepsiCo (PEP) Exceeds Market Returns: Some Facts to Consider
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In the latest close session, PepsiCo (PEP - Free Report) was up +1.1% at $144.23. The stock's performance was ahead of the S&P 500's daily gain of 0.85%. Elsewhere, the Dow gained 1.36%, while the tech-heavy Nasdaq added 0.72%.
Coming into today, shares of the food and beverage company had lost 4.48% in the past month. In that same time, the Consumer Staples sector lost 1.7%, while the S&P 500 gained 2.38%.
Market participants will be closely following the financial results of PepsiCo in its upcoming release. The company plans to announce its earnings on October 9, 2025. The company's earnings per share (EPS) are projected to be $2.26, reflecting a 2.16% decrease from the same quarter last year. Alongside, our most recent consensus estimate is anticipating revenue of $23.79 billion, indicating a 2% upward movement from the same quarter last year.
Looking at the full year, the Zacks Consensus Estimates suggest analysts are expecting earnings of $8.03 per share and revenue of $93.06 billion. These totals would mark changes of -1.59% and +1.31%, respectively, from last year.
Investors should also take note of any recent adjustments to analyst estimates for PepsiCo. These revisions help to show the ever-changing nature of near-term business trends. As a result, upbeat changes in estimates indicate analysts' favorable outlook on the business health and profitability.
Our research shows that these estimate changes are directly correlated with near-term stock prices. 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, 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 shifted 0.12% upward. PepsiCo is currently sporting a Zacks Rank of #2 (Buy).
In terms of valuation, PepsiCo is currently trading at a Forward P/E ratio of 17.77. Its industry sports an average Forward P/E of 17.77, so one might conclude that PepsiCo is trading at no noticeable deviation comparatively.
It's also important to note that PEP currently trades at a PEG ratio of 3.61. This popular metric is similar to the widely-known P/E ratio, with the difference being that the PEG ratio also takes into account the company's expected earnings growth rate. PEP's industry had an average PEG ratio of 2.19 as of yesterday's close.
The Beverages - Soft drinks industry is part of the Consumer Staples sector. This industry, currently bearing a Zacks Industry Rank of 204, finds itself in the bottom 18% echelons 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.
To follow PEP in the coming trading sessions, be sure to utilize Zacks.com.
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PepsiCo (PEP) Exceeds Market Returns: Some Facts to Consider
In the latest close session, PepsiCo (PEP - Free Report) was up +1.1% at $144.23. The stock's performance was ahead of the S&P 500's daily gain of 0.85%. Elsewhere, the Dow gained 1.36%, while the tech-heavy Nasdaq added 0.72%.
Coming into today, shares of the food and beverage company had lost 4.48% in the past month. In that same time, the Consumer Staples sector lost 1.7%, while the S&P 500 gained 2.38%.
Market participants will be closely following the financial results of PepsiCo in its upcoming release. The company plans to announce its earnings on October 9, 2025. The company's earnings per share (EPS) are projected to be $2.26, reflecting a 2.16% decrease from the same quarter last year. Alongside, our most recent consensus estimate is anticipating revenue of $23.79 billion, indicating a 2% upward movement from the same quarter last year.
Looking at the full year, the Zacks Consensus Estimates suggest analysts are expecting earnings of $8.03 per share and revenue of $93.06 billion. These totals would mark changes of -1.59% and +1.31%, respectively, from last year.
Investors should also take note of any recent adjustments to analyst estimates for PepsiCo. These revisions help to show the ever-changing nature of near-term business trends. As a result, upbeat changes in estimates indicate analysts' favorable outlook on the business health and profitability.
Our research shows that these estimate changes are directly correlated with near-term stock prices. 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, 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 shifted 0.12% upward. PepsiCo is currently sporting a Zacks Rank of #2 (Buy).
In terms of valuation, PepsiCo is currently trading at a Forward P/E ratio of 17.77. Its industry sports an average Forward P/E of 17.77, so one might conclude that PepsiCo is trading at no noticeable deviation comparatively.
It's also important to note that PEP currently trades at a PEG ratio of 3.61. This popular metric is similar to the widely-known P/E ratio, with the difference being that the PEG ratio also takes into account the company's expected earnings growth rate. PEP's industry had an average PEG ratio of 2.19 as of yesterday's close.
The Beverages - Soft drinks industry is part of the Consumer Staples sector. This industry, currently bearing a Zacks Industry Rank of 204, finds itself in the bottom 18% echelons 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.
To follow PEP in the coming trading sessions, be sure to utilize Zacks.com.