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PepsiCo (PEP) Outpaces Stock Market Gains: What You Should Know
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In the latest trading session, PepsiCo (PEP - Free Report) closed at $118.35, marking a +1.33% move from the previous day. The stock outpaced the S&P 500's daily gain of 0.22%. At the same time, the Dow added 0.49%, and the tech-heavy Nasdaq lost 0.15%.
Heading into today, shares of the food and beverage company had gained 8.22% over the past month, outpacing the Consumer Staples sector's gain of 2.57% and the S&P 500's loss of 0.57% 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. In that report, analysts expect PEP to post earnings of $1.49 per share. This would mark 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.
Investors should also note any recent changes to analyst estimates for PEP. These revisions typically reflect the latest short-term business trends, which can change frequently. As such, positive estimate revisions reflect analyst optimism about the company's business and profitability.
Based on our research, we believe these estimate revisions are directly related to near-team stock moves. We developed the Zacks Rank to capitalize on this phenomenon. Our system takes these estimate changes into account and delivers a clear, actionable rating model.
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. Within the past 30 days, our consensus EPS projection remained stagnant. PEP is holding a Zacks Rank of #4 (Sell) right now.
Valuation is also important, so investors should note that PEP has a Forward P/E ratio of 20.67 right now. This represents a discount compared to its industry's average Forward P/E of 22.51.
It is also worth noting that PEP currently has a PEG ratio of 2.92. This popular metric is similar to the widely-known P/E ratio, with the difference being that the PEG ratio also takes into account the company's expected earnings growth rate. Beverages - Soft drinks stocks are, on average, holding a PEG ratio of 2.18 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 180, which puts it in the bottom 30% 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.
Be sure to follow all of these stock-moving metrics, and many more, on Zacks.com.
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PepsiCo (PEP) Outpaces Stock Market Gains: What You Should Know
In the latest trading session, PepsiCo (PEP - Free Report) closed at $118.35, marking a +1.33% move from the previous day. The stock outpaced the S&P 500's daily gain of 0.22%. At the same time, the Dow added 0.49%, and the tech-heavy Nasdaq lost 0.15%.
Heading into today, shares of the food and beverage company had gained 8.22% over the past month, outpacing the Consumer Staples sector's gain of 2.57% and the S&P 500's loss of 0.57% 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. In that report, analysts expect PEP to post earnings of $1.49 per share. This would mark 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.
Investors should also note any recent changes to analyst estimates for PEP. These revisions typically reflect the latest short-term business trends, which can change frequently. As such, positive estimate revisions reflect analyst optimism about the company's business and profitability.
Based on our research, we believe these estimate revisions are directly related to near-team stock moves. We developed the Zacks Rank to capitalize on this phenomenon. Our system takes these estimate changes into account and delivers a clear, actionable rating model.
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. Within the past 30 days, our consensus EPS projection remained stagnant. PEP is holding a Zacks Rank of #4 (Sell) right now.
Valuation is also important, so investors should note that PEP has a Forward P/E ratio of 20.67 right now. This represents a discount compared to its industry's average Forward P/E of 22.51.
It is also worth noting that PEP currently has a PEG ratio of 2.92. This popular metric is similar to the widely-known P/E ratio, with the difference being that the PEG ratio also takes into account the company's expected earnings growth rate. Beverages - Soft drinks stocks are, on average, holding a PEG ratio of 2.18 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 180, which puts it in the bottom 30% 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.
Be sure to follow all of these stock-moving metrics, and many more, on Zacks.com.