PepsiCo (PEP - Free Report) closed the most recent trading day at $117.48, moving +1.22% from the previous trading session. The stock outpaced the S&P 500's daily loss of 0.92%. Meanwhile, the Dow lost 0.77%, and the Nasdaq, a tech-heavy index, lost 1.65%.
Heading into today, shares of the food and beverage company had gained 10.47% over the past month, outpacing the Consumer Staples sector's gain of 0.44% and the S&P 500's loss of 2.56% in that time.
Wall Street will be looking for positivity from PEP as it approaches its next earnings report date. This is expected to be February 15, 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%. Our most recent consensus estimate is calling for quarterly revenue of $19.54 billion, up 0.08% from the year-ago period.
PEP's full-year Zacks Consensus Estimates are calling for earnings of $5.65 per share and revenue of $64.74 billion. These results would represent year-over-year changes of +8.03% and +1.92%, respectively.
Investors should also note any 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.
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. Within the past 30 days, our consensus EPS projection remained stagnant. PEP currently has a Zacks Rank of #3 (Hold).
Investors should also note PEP's current valuation metrics, including its Forward P/E ratio of 20.54. For comparison, its industry has an average Forward P/E of 23.84, which means PEP is trading at a discount to the group.
We can also see that PEP currently has a PEG ratio of 2.9. 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. The Beverages - Soft drinks was holding an average PEG ratio of 2.07 at yesterday's closing price.
The Beverages - Soft drinks industry is part of the Consumer Staples sector. This industry currently has a Zacks Industry Rank of 162, which puts it in the bottom 37% 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.
Make sure to utilize Zacks. Com to follow all of these stock-moving metrics, and more, in the coming trading sessions.