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PepsiCo (PEP) Beats Stock Market Upswing: What Investors Need to Know

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In the latest trading session, PepsiCo (PEP - Free Report) closed at $143.14, marking a +1.92% move from the previous day. The stock outperformed the S&P 500, which registered a daily gain of 0.34%. Meanwhile, the Dow experienced a rise of 0.09%, and the technology-dominated Nasdaq saw an increase of 0.42%.

The food and beverage company's shares have seen a decrease of 6.55% over the last month, not keeping up with the Consumer Staples sector's loss of 3.82% and the S&P 500's gain of 3.54%.

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. In that report, analysts expect PepsiCo to post earnings of $2.27 per share. This would mark a year-over-year decline of 1.73%. Our most recent consensus estimate is calling for quarterly revenue of $23.88 billion, up 2.39% from the year-ago period.

Regarding the entire year, the Zacks Consensus Estimates forecast earnings of $8.03 per share and revenue of $93.33 billion, indicating changes of -1.59% and +1.61%, respectively, compared to the previous year.

Investors should also note any recent changes to analyst estimates for PepsiCo. These revisions help to show the ever-changing nature of near-term business trends. As a result, we can interpret positive estimate revisions as a good sign for the business outlook.

Based on our research, we believe these estimate revisions are directly related to near-term stock moves. To utilize this, we have created the Zacks Rank, a proprietary model that integrates these estimate changes and provides a functional rating system.

The Zacks Rank system, which varies between #1 (Strong Buy) and #5 (Strong Sell), carries an impressive track record of exceeding expectations, confirmed by external audits, with stocks at #1 delivering an average annual return of +25% since 1988. Over the last 30 days, the Zacks Consensus EPS estimate has witnessed a 0.17% increase. PepsiCo presently features a Zacks Rank of #2 (Buy).

Looking at valuation, PepsiCo is presently trading at a Forward P/E ratio of 17.48. This indicates no noticeable deviation in contrast to its industry's Forward P/E of 17.48.

One should further note that PEP currently holds a PEG ratio of 3.54. The PEG ratio is similar to the widely-used P/E ratio, but this metric also takes the company's expected earnings growth rate into account. By the end of yesterday's trading, the Beverages - Soft drinks industry had an average PEG ratio of 2.34.

The Beverages - Soft drinks industry is part of the Consumer Staples sector. With its current Zacks Industry Rank of 228, this industry ranks in the bottom 8% of all industries, numbering over 250.

The Zacks Industry Rank gauges the strength of our industry groups by measuring the average Zacks Rank of the individual stocks within the groups. Our research shows that the top 50% rated industries outperform the bottom half by a factor of 2 to 1.

Don't forget to use Zacks.com to keep track of all these stock-moving metrics, and others, in the upcoming trading sessions.


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