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PepsiCo (PEP) Suffers a Larger Drop Than the General Market: Key Insights
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In the latest trading session, PepsiCo (PEP - Free Report) closed at $126.72, marking a -1.53% move from the previous day. The stock's performance was behind the S&P 500's daily loss of 0.25%. On the other hand, the Dow registered a loss of 0.86%, and the technology-centric Nasdaq increased by 0.24%.
The food and beverage company's shares have seen a decrease of 7.94% over the last month, not keeping up with the Consumer Staples sector's loss of 4.32% and the S&P 500's loss of 0.42%.
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 October 8, 2026. The company is expected to report EPS of $2.29, unchanged from the prior-year quarter. Meanwhile, the latest consensus estimate predicts the revenue to be $24.89 billion, indicating a 4% increase compared to the same quarter of the previous year.
For the full year, the Zacks Consensus Estimates project earnings of $8.56 per share and a revenue of $98.89 billion, demonstrating changes of +5.16% and +5.29%, respectively, from the preceding year.
It's also important for investors to be aware of any recent modifications to analyst estimates for PepsiCo. These revisions typically reflect the latest short-term business trends, which can change frequently. As a result, we can interpret positive estimate revisions as a good sign for the business outlook.
Empirical research indicates that these revisions in estimates have a direct correlation with impending stock price performance. Investors can capitalize on this by using the Zacks Rank. This model considers these estimate changes and provides a simple, actionable 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 past month, the Zacks Consensus EPS estimate has moved 0.12% lower. PepsiCo is currently a Zacks Rank #4 (Sell).
Looking at valuation, PepsiCo is presently trading at a Forward P/E ratio of 15.03. This signifies a discount in comparison to the average Forward P/E of 17.93 for its industry.
We can also see that PEP currently has a PEG ratio of 2.92. 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. As the market closed yesterday, the Beverages - Soft drinks industry was having an average PEG ratio of 1.74.
The Beverages - Soft drinks industry is part of the Consumer Staples sector. This industry, currently bearing a Zacks Industry Rank of 198, finds itself in the bottom 20% 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.
Make sure to utilize Zacks.com to follow all of these stock-moving metrics, and more, in the coming trading sessions.
View the Zacks #1 Rank List
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PepsiCo (PEP) Suffers a Larger Drop Than the General Market: Key Insights
In the latest trading session, PepsiCo (PEP - Free Report) closed at $126.72, marking a -1.53% move from the previous day. The stock's performance was behind the S&P 500's daily loss of 0.25%. On the other hand, the Dow registered a loss of 0.86%, and the technology-centric Nasdaq increased by 0.24%.
The food and beverage company's shares have seen a decrease of 7.94% over the last month, not keeping up with the Consumer Staples sector's loss of 4.32% and the S&P 500's loss of 0.42%.
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 October 8, 2026. The company is expected to report EPS of $2.29, unchanged from the prior-year quarter. Meanwhile, the latest consensus estimate predicts the revenue to be $24.89 billion, indicating a 4% increase compared to the same quarter of the previous year.
For the full year, the Zacks Consensus Estimates project earnings of $8.56 per share and a revenue of $98.89 billion, demonstrating changes of +5.16% and +5.29%, respectively, from the preceding year.
It's also important for investors to be aware of any recent modifications to analyst estimates for PepsiCo. These revisions typically reflect the latest short-term business trends, which can change frequently. As a result, we can interpret positive estimate revisions as a good sign for the business outlook.
Empirical research indicates that these revisions in estimates have a direct correlation with impending stock price performance. Investors can capitalize on this by using the Zacks Rank. This model considers these estimate changes and provides a simple, actionable 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 past month, the Zacks Consensus EPS estimate has moved 0.12% lower. PepsiCo is currently a Zacks Rank #4 (Sell).
Looking at valuation, PepsiCo is presently trading at a Forward P/E ratio of 15.03. This signifies a discount in comparison to the average Forward P/E of 17.93 for its industry.
We can also see that PEP currently has a PEG ratio of 2.92. 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. As the market closed yesterday, the Beverages - Soft drinks industry was having an average PEG ratio of 1.74.
The Beverages - Soft drinks industry is part of the Consumer Staples sector. This industry, currently bearing a Zacks Industry Rank of 198, finds itself in the bottom 20% 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.
Make sure to utilize Zacks.com to follow all of these stock-moving metrics, and more, in the coming trading sessions.