In the latest trading session, PepsiCo (PEP - Free Report) closed at $115.28, marking a -0.62% move from the previous day. This change lagged the S&P 500's daily gain of 0.3%. Meanwhile, the Dow 0%, and the Nasdaq, a tech-heavy index, added 0.92%.
Coming into today, shares of the food and beverage company had gained 2.05% in the past month. In that same time, the Consumer Staples sector lost 1.78%, while the S&P 500 lost 4.06%.
Investors will be hoping for strength from PEP as it approaches its next earnings release, which 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%. Meanwhile, our latest consensus estimate is calling for revenue of $19.54 billion, up 0.08% from the prior-year quarter.
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.
It is also important to note the recent changes to analyst estimates for PEP. Recent revisions tend to reflect the latest 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 ranges from #1 (Strong Buy) to #5 (Strong Sell). It has a remarkable, outside-audited track record of success, with #1 stocks delivering an average annual return of +25% since 1988. Within the past 30 days, our consensus EPS projection remained stagnant. PEP is currently a Zacks Rank #3 (Hold).
Looking at its valuation, PEP is holding a Forward P/E ratio of 20.4. This valuation marks a discount compared to its industry's average Forward P/E of 23.35.
Investors should also note that PEP has a PEG ratio of 2.89 right now. 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 2.19 at yesterday's closing price.
The Beverages - Soft drinks industry is part of the Consumer Staples sector. This group has a Zacks Industry Rank of 183, putting it in the bottom 29% 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.