PepsiCo (PEP - Free Report) closed the most recent trading day at $108.16, moving +0.01% from the previous trading session. This change outpaced the S&P 500's 0.02% loss on the day. Meanwhile, the Dow lost 0.03%, and the Nasdaq, a tech-heavy index, lost 0.21%.
Coming into today, shares of the food and beverage company had lost 8.62% in the past month. In that same time, the Consumer Staples sector lost 3.68%, while the S&P 500 lost 1.4%.
PEP will be looking to display strength as it nears its next earnings release, which 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%. Our most recent consensus estimate is calling for quarterly revenue of $19.53 billion, up 0.03% from the year-ago period.
Any recent changes to analyst estimates for PEP should also be noted by investors. These recent revisions tend to reflect the evolving nature of short-term business trends. As a result, we can interpret positive estimate revisions as a good sign for the company's business outlook.
Our research shows that these estimate changes are directly correlated with near-term stock prices. 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.
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. Over the past month, the Zacks Consensus EPS estimate has moved 1.36% lower. PEP is currently sporting a Zacks Rank of #3 (Hold).
In terms of valuation, PEP is currently trading at a Forward P/E ratio of 18.39. This represents a discount compared to its industry's average Forward P/E of 19.28.
Also, we should mention that PEP has a PEG ratio of 2.62. 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. PEP's industry had an average PEG ratio of 1.84 as of yesterday's close.
The Beverages - Soft drinks industry is part of the Consumer Staples sector. This industry currently has a Zacks Industry Rank of 208, which puts it in the bottom 19% of all 250+ industries.
The Zacks Industry Rank gauges the strength of our individual 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.