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PepsiCo (PEP) Exceeds Market Returns: Some Facts to Consider
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PepsiCo (PEP - Free Report) ended the recent trading session at $150.57, demonstrating a +1.16% change from the preceding day's closing price. The stock exceeded the S&P 500, which registered a gain of 0.37% for the day. Elsewhere, the Dow saw an upswing of 0.59%, while the tech-heavy Nasdaq appreciated by 0.19%.
Heading into today, shares of the food and beverage company had lost 4.4% over the past month, lagging the Consumer Staples sector's gain of 5.95% and the S&P 500's gain of 5.51%.
The upcoming earnings release of PepsiCo will be of great interest to investors. The company's upcoming EPS is projected at $2.2, signifying a 3.77% increase compared to the same quarter of the previous year. Meanwhile, the latest consensus estimate predicts the revenue to be $23.82 billion, indicating a 4.83% increase compared to the same quarter of the previous year.
For the full year, the Zacks Consensus Estimates project earnings of $8.63 per share and a revenue of $98.69 billion, demonstrating changes of +6.02% and +5.08%, respectively, from the preceding year.
Investors should also pay attention to any latest changes in analyst estimates for PepsiCo. These recent revisions tend to reflect the evolving nature of short-term business trends. Therefore, positive revisions in estimates convey analysts' confidence in the business performance and profit potential.
Research indicates that these estimate revisions are directly correlated with near-term share price momentum. 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, which ranges from #1 (Strong Buy) to #5 (Strong Sell), has an impressive outside-audited track record of outperformance, with #1 stocks generating an average annual return of +25% since 1988. The Zacks Consensus EPS estimate has moved 0.08% lower within the past month. At present, PepsiCo boasts a Zacks Rank of #3 (Hold).
Looking at its valuation, PepsiCo is holding a Forward P/E ratio of 17.25. This represents a premium compared to its industry average Forward P/E of 17.14.
One should further note that PEP currently holds a PEG ratio of 2.7. Comparable to the widely accepted P/E ratio, the PEG ratio also accounts for the company's projected earnings growth. As the market closed yesterday, the Beverages - Soft drinks industry was having an average PEG ratio of 1.89.
The Beverages - Soft drinks industry is part of the Consumer Staples sector. This industry currently has a Zacks Industry Rank of 171, which puts it in the bottom 30% of all 250+ industries.
The Zacks Industry Rank evaluates the power of our distinct industry groups by determining the average Zacks Rank of the individual stocks forming the groups. Our research shows that the top 50% rated industries outperform the bottom half by a factor of 2 to 1.
Be sure to use Zacks.com to monitor all these stock-influencing metrics, and more, throughout the forthcoming trading sessions.
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PepsiCo (PEP) Exceeds Market Returns: Some Facts to Consider
PepsiCo (PEP - Free Report) ended the recent trading session at $150.57, demonstrating a +1.16% change from the preceding day's closing price. The stock exceeded the S&P 500, which registered a gain of 0.37% for the day. Elsewhere, the Dow saw an upswing of 0.59%, while the tech-heavy Nasdaq appreciated by 0.19%.
Heading into today, shares of the food and beverage company had lost 4.4% over the past month, lagging the Consumer Staples sector's gain of 5.95% and the S&P 500's gain of 5.51%.
The upcoming earnings release of PepsiCo will be of great interest to investors. The company's upcoming EPS is projected at $2.2, signifying a 3.77% increase compared to the same quarter of the previous year. Meanwhile, the latest consensus estimate predicts the revenue to be $23.82 billion, indicating a 4.83% increase compared to the same quarter of the previous year.
For the full year, the Zacks Consensus Estimates project earnings of $8.63 per share and a revenue of $98.69 billion, demonstrating changes of +6.02% and +5.08%, respectively, from the preceding year.
Investors should also pay attention to any latest changes in analyst estimates for PepsiCo. These recent revisions tend to reflect the evolving nature of short-term business trends. Therefore, positive revisions in estimates convey analysts' confidence in the business performance and profit potential.
Research indicates that these estimate revisions are directly correlated with near-term share price momentum. 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, which ranges from #1 (Strong Buy) to #5 (Strong Sell), has an impressive outside-audited track record of outperformance, with #1 stocks generating an average annual return of +25% since 1988. The Zacks Consensus EPS estimate has moved 0.08% lower within the past month. At present, PepsiCo boasts a Zacks Rank of #3 (Hold).
Looking at its valuation, PepsiCo is holding a Forward P/E ratio of 17.25. This represents a premium compared to its industry average Forward P/E of 17.14.
One should further note that PEP currently holds a PEG ratio of 2.7. Comparable to the widely accepted P/E ratio, the PEG ratio also accounts for the company's projected earnings growth. As the market closed yesterday, the Beverages - Soft drinks industry was having an average PEG ratio of 1.89.
The Beverages - Soft drinks industry is part of the Consumer Staples sector. This industry currently has a Zacks Industry Rank of 171, which puts it in the bottom 30% of all 250+ industries.
The Zacks Industry Rank evaluates the power of our distinct industry groups by determining the average Zacks Rank of the individual stocks forming the groups. Our research shows that the top 50% rated industries outperform the bottom half by a factor of 2 to 1.
Be sure to use Zacks.com to monitor all these stock-influencing metrics, and more, throughout the forthcoming trading sessions.