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PepsiCo (PEP) Dips More Than Broader Markets: What You Should Know
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PepsiCo (PEP - Free Report) closed at $109.40 in the latest trading session, marking a -0.81% move from the prior day. This move lagged the S&P 500's daily loss of 0.43%. At the same time, the Dow lost 0.5%, and the tech-heavy Nasdaq gained 0.26%.
Heading into today, shares of the food and beverage company had lost 4.28% over the past month, lagging the Consumer Staples sector's loss of 1.52% and outpacing the S&P 500's loss of 4.68% in that time.
Investors will be hoping for strength from PEP as it approaches its next earnings release, which is expected to be February 12, 2019. On that day, PEP is projected to report earnings of $1.49 per share, which would represent year-over-year growth of 13.74%. Meanwhile, our latest consensus estimate is calling for revenue of $19.54 billion, up 0.08% from the prior-year quarter.
For the full year, our Zacks Consensus Estimates are projecting earnings of $5.65 per share and revenue of $64.74 billion, which would represent changes of +8.03% and +1.92%, respectively, from the prior year.
It is also important to note the recent changes to analyst estimates for PEP. These revisions help to show the ever-changing nature of near-term business trends. With this in mind, we can consider positive estimate revisions a sign of optimism about the company's business outlook.
Based on our research, we believe these estimate revisions are directly related to near-team stock moves. 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 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. Over the past month, the Zacks Consensus EPS estimate has moved 0.62% lower. PEP is currently a Zacks Rank #4 (Sell).
Looking at its valuation, PEP is holding a Forward P/E ratio of 19.52. This represents a discount compared to its industry's average Forward P/E of 22.8.
Also, we should mention that PEP has a PEG ratio of 2.76. This metric is used similarly to the famous P/E ratio, but the PEG ratio also takes into account the stock's expected earnings growth rate. Beverages - Soft drinks stocks are, on average, holding a PEG ratio of 2.19 based on yesterday's closing prices.
The Beverages - Soft drinks industry is part of the Consumer Staples sector. This industry currently has a Zacks Industry Rank of 169, which puts it in the bottom 34% of all 250+ industries.
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.
You can find more information on all of these metrics, and much more, on Zacks.com.
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PepsiCo (PEP) Dips More Than Broader Markets: What You Should Know
PepsiCo (PEP - Free Report) closed at $109.40 in the latest trading session, marking a -0.81% move from the prior day. This move lagged the S&P 500's daily loss of 0.43%. At the same time, the Dow lost 0.5%, and the tech-heavy Nasdaq gained 0.26%.
Heading into today, shares of the food and beverage company had lost 4.28% over the past month, lagging the Consumer Staples sector's loss of 1.52% and outpacing the S&P 500's loss of 4.68% in that time.
Investors will be hoping for strength from PEP as it approaches its next earnings release, which is expected to be February 12, 2019. On that day, PEP is projected to report earnings of $1.49 per share, which would represent year-over-year growth of 13.74%. Meanwhile, our latest consensus estimate is calling for revenue of $19.54 billion, up 0.08% from the prior-year quarter.
For the full year, our Zacks Consensus Estimates are projecting earnings of $5.65 per share and revenue of $64.74 billion, which would represent changes of +8.03% and +1.92%, respectively, from the prior year.
It is also important to note the recent changes to analyst estimates for PEP. These revisions help to show the ever-changing nature of near-term business trends. With this in mind, we can consider positive estimate revisions a sign of optimism about the company's business outlook.
Based on our research, we believe these estimate revisions are directly related to near-team stock moves. 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 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. Over the past month, the Zacks Consensus EPS estimate has moved 0.62% lower. PEP is currently a Zacks Rank #4 (Sell).
Looking at its valuation, PEP is holding a Forward P/E ratio of 19.52. This represents a discount compared to its industry's average Forward P/E of 22.8.
Also, we should mention that PEP has a PEG ratio of 2.76. This metric is used similarly to the famous P/E ratio, but the PEG ratio also takes into account the stock's expected earnings growth rate. Beverages - Soft drinks stocks are, on average, holding a PEG ratio of 2.19 based on yesterday's closing prices.
The Beverages - Soft drinks industry is part of the Consumer Staples sector. This industry currently has a Zacks Industry Rank of 169, which puts it in the bottom 34% of all 250+ industries.
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.
You can find more information on all of these metrics, and much more, on Zacks.com.