Back to top

Image: Bigstock

Why the Market Dipped But PepsiCo (PEP) Gained Today

Read MoreHide Full Article

PepsiCo (PEP - Free Report) closed the most recent trading day at $142.78, moving +1.49% from the previous trading session. The stock outperformed the S&P 500, which registered a daily loss of 0.26%. On the other hand, the Dow registered a gain of 0.17%, and the technology-centric Nasdaq decreased by 0.97%.

Prior to today's trading, shares of the food and beverage company had lost 5.84% lagged the Consumer Staples sector's loss of 1.08% and the S&P 500's gain of 0.23%.

The investment community will be paying close attention to the earnings performance of PepsiCo in its upcoming release. The company is slated to reveal its earnings on July 9, 2026. The company's earnings per share (EPS) are projected to be $2.2, reflecting a 3.77% increase from the same quarter last year. At the same time, our most recent consensus estimate is projecting a revenue of $23.82 billion, reflecting a 4.83% rise from the equivalent quarter last 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 take note of any recent adjustments to analyst estimates for PepsiCo. Recent revisions tend to reflect the latest near-term business trends. Therefore, positive revisions in estimates convey analysts' confidence in the business performance and profit potential.

Our research shows that these estimate changes are directly correlated with near-term stock prices. To utilize this, we have created the Zacks Rank, a proprietary model that integrates these estimate changes and provides a functional rating system.

Ranging from #1 (Strong Buy) to #5 (Strong Sell), the Zacks Rank system has a proven, outside-audited track record of outperformance, with #1 stocks returning an average of +25% annually since 1988. Over the last 30 days, the Zacks Consensus EPS estimate has witnessed an unchanged state. Currently, PepsiCo is carrying a Zacks Rank of #3 (Hold).

Digging into valuation, PepsiCo currently has a Forward P/E ratio of 16.3. This represents a discount compared to its industry average Forward P/E of 16.94.

Meanwhile, PEP's PEG ratio is currently 2.55. The PEG ratio is akin to the commonly utilized P/E ratio, but this measure also incorporates the company's anticipated earnings growth rate. By the end of yesterday's trading, the Beverages - Soft drinks industry had an average PEG ratio of 1.88.

The Beverages - Soft drinks industry is part of the Consumer Staples sector. Currently, this industry holds a Zacks Industry Rank of 72, positioning it in the top 30% of all 250+ industries.

The strength of our individual industry groups is measured by the Zacks Industry Rank, which is calculated based on the average Zacks Rank of the individual stocks within these groups. Our research shows that the top 50% rated industries outperform the bottom half by a factor of 2 to 1.

Keep in mind to rely on Zacks.com to watch all these stock-impacting metrics, and more, in the succeeding trading sessions.

Zacks' 7 Best Strong Buy Stocks (New Research Report)

Valued at $99, click below to receive our just-released report predicting the 7 stocks that will soar highest in the coming month.

Click Here, It's Really Free

Published in