PepsiCo (PEP - Free Report) closed the most recent trading day at $116.52, moving +1.12% from the previous trading session. The stock lagged the S&P 500's daily gain of 1.47%. Elsewhere, the Dow gained 0.79%, while the tech-heavy Nasdaq added 2.02%.
Coming into today, shares of the food and beverage company had gained 1.89% in the past month. In that same time, the Consumer Staples sector gained 0.07%, while the S&P 500 gained 1.5%.
Wall Street will be looking for positivity from PEP as it approaches its next earnings report date. On that day, PEP is projected to report earnings of $0.92 per share, which would represent a year-over-year decline of 4.17%. Our most recent consensus estimate is calling for quarterly revenue of $12.65 billion, up 0.7% from the year-ago period.
PEP's full-year Zacks Consensus Estimates are calling for earnings of $5.50 per share and revenue of $66.21 billion. These results would represent year-over-year changes of -2.83% and +2.4%, respectively.
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.
Research indicates that these estimate revisions are directly correlated with near-term share price momentum. 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. The Zacks Consensus EPS estimate has moved 5.81% lower within the past month. PEP is currently sporting a Zacks Rank of #4 (Sell).
In terms of valuation, PEP is currently trading at a Forward P/E ratio of 20.95. Its industry sports an average Forward P/E of 21.43, so we one might conclude that PEP is trading at a discount comparatively.
It is also worth noting that PEP currently has a PEG ratio of 2.91. 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. PEP's industry had an average PEG ratio of 2.07 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 215, which puts it in the bottom 16% of all 250+ industries.
The Zacks Industry Rank includes is listed in order from best to worst in terms of the average Zacks Rank of the individual companies within each of these sectors. 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.