PepsiCo (PEP - Free Report) closed the most recent trading day at $117.80, moving -0.99% from the previous trading session. This change was narrower than the S&P 500's 3.24% loss on the day. Elsewhere, the Dow lost 3.1%, while the tech-heavy Nasdaq lost 3.8%.
Heading into today, shares of the food and beverage company had gained 7.03% over the past month, outpacing the Consumer Staples sector's gain of 1.01% and the S&P 500's gain of 2.73% 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%. 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.
Any recent changes to analyst estimates for PEP should also be noted by investors. Recent revisions tend to reflect the latest near-term business trends. 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. 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 remained stagnant. PEP is currently a Zacks Rank #4 (Sell).
Valuation is also important, so investors should note that PEP has a Forward P/E ratio of 21.06 right now. This represents a discount compared to its industry's average Forward P/E of 22.8.
Meanwhile, PEP's PEG ratio is currently 2.98. 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. The Beverages - Soft drinks industry currently had an average PEG ratio of 2.15 as of yesterday's close.
The Beverages - Soft drinks industry is part of the Consumer Staples sector. This group has a Zacks Industry Rank of 203, putting it in the bottom 21% 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.