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Here's Why PepsiCo (PEP) Fell More Than Broader Market
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PepsiCo (PEP - Free Report) closed the most recent trading day at $128.15, moving -1.56% from the previous trading session. The stock trailed the S&P 500, which registered a daily loss of 0.03%. At the same time, the Dow lost 0.31%, and the tech-heavy Nasdaq gained 0.01%.
Coming into today, shares of the food and beverage company had lost 8.45% in the past month. In that same time, the Consumer Staples sector lost 3.55%, while the S&P 500 gained 0.53%.
Market participants will be closely following the financial results of PepsiCo in its upcoming release. The company plans to announce its earnings on October 8, 2026. On that day, PepsiCo is projected to report earnings of $2.3 per share, which would represent year-over-year growth of 0.44%. In the meantime, our current consensus estimate forecasts the revenue to be $24.92 billion, indicating a 4.1% growth compared to the corresponding quarter of the prior year.
In terms of the entire fiscal year, the Zacks Consensus Estimates predict earnings of $8.57 per share and a revenue of $98.97 billion, indicating changes of +5.28% and +5.37%, respectively, from the former 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. As a result, upbeat changes in estimates indicate analysts' favorable outlook on the business health and profitability.
Our research suggests that these changes in estimates have a direct relationship with upcoming stock price performance. 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, running from #1 (Strong Buy) to #5 (Strong Sell), holds an admirable track record of superior performance, independently audited, with #1 stocks contributing an average annual return of +25% since 1988. Over the past month, the Zacks Consensus EPS estimate has remained steady. PepsiCo is holding a Zacks Rank of #4 (Sell) right now.
With respect to valuation, PepsiCo is currently being traded at a Forward P/E ratio of 15.19. This expresses a discount compared to the average Forward P/E of 17.1 of its industry.
It's also important to note that PEP currently trades at a PEG ratio of 2.74. The PEG ratio is akin to the commonly utilized P/E ratio, but this measure also incorporates the company's anticipated earnings growth rate. PEP's industry had an average PEG ratio of 1.58 as of yesterday's close.
The Beverages - Soft drinks industry is part of the Consumer Staples sector. This group has a Zacks Industry Rank of 196, putting it in the bottom 21% 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.
To follow PEP in the coming trading sessions, be sure to utilize Zacks.com.
View the Zacks #1 Rank List
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Here's Why PepsiCo (PEP) Fell More Than Broader Market
PepsiCo (PEP - Free Report) closed the most recent trading day at $128.15, moving -1.56% from the previous trading session. The stock trailed the S&P 500, which registered a daily loss of 0.03%. At the same time, the Dow lost 0.31%, and the tech-heavy Nasdaq gained 0.01%.
Coming into today, shares of the food and beverage company had lost 8.45% in the past month. In that same time, the Consumer Staples sector lost 3.55%, while the S&P 500 gained 0.53%.
Market participants will be closely following the financial results of PepsiCo in its upcoming release. The company plans to announce its earnings on October 8, 2026. On that day, PepsiCo is projected to report earnings of $2.3 per share, which would represent year-over-year growth of 0.44%. In the meantime, our current consensus estimate forecasts the revenue to be $24.92 billion, indicating a 4.1% growth compared to the corresponding quarter of the prior year.
In terms of the entire fiscal year, the Zacks Consensus Estimates predict earnings of $8.57 per share and a revenue of $98.97 billion, indicating changes of +5.28% and +5.37%, respectively, from the former 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. As a result, upbeat changes in estimates indicate analysts' favorable outlook on the business health and profitability.
Our research suggests that these changes in estimates have a direct relationship with upcoming stock price performance. 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, running from #1 (Strong Buy) to #5 (Strong Sell), holds an admirable track record of superior performance, independently audited, with #1 stocks contributing an average annual return of +25% since 1988. Over the past month, the Zacks Consensus EPS estimate has remained steady. PepsiCo is holding a Zacks Rank of #4 (Sell) right now.
With respect to valuation, PepsiCo is currently being traded at a Forward P/E ratio of 15.19. This expresses a discount compared to the average Forward P/E of 17.1 of its industry.
It's also important to note that PEP currently trades at a PEG ratio of 2.74. The PEG ratio is akin to the commonly utilized P/E ratio, but this measure also incorporates the company's anticipated earnings growth rate. PEP's industry had an average PEG ratio of 1.58 as of yesterday's close.
The Beverages - Soft drinks industry is part of the Consumer Staples sector. This group has a Zacks Industry Rank of 196, putting it in the bottom 21% 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.
To follow PEP in the coming trading sessions, be sure to utilize Zacks.com.