PepsiCo (PEP - Free Report) closed at $117.22 in the latest trading session, marking a +1.35% move from the prior day. The stock outpaced the S&P 500's daily gain of 0.37%. Meanwhile, the Dow gained 0.25%, and the Nasdaq, a tech-heavy index, added 0.34%.
Prior to today's trading, shares of the food and beverage company had gained 2.73% over the past month. This has outpaced the Consumer Staples sector's gain of 1.75% and the S&P 500's gain of 1.83% 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 April 17, 2019. In that report, analysts expect PEP to post earnings of $0.92 per share. This would mark a year-over-year decline of 4.17%. Meanwhile, our latest consensus estimate is calling for revenue of $12.65 billion, up 0.7% from the prior-year quarter.
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. 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.
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. The Zacks Consensus EPS estimate has moved 5.81% lower within the past month. PEP is holding a Zacks Rank of #4 (Sell) right now.
Digging into valuation, PEP currently has a Forward P/E ratio of 21.03. For comparison, its industry has an average Forward P/E of 21.65, which means PEP is trading at a discount to the group.
Meanwhile, PEP's PEG ratio is currently 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. The Beverages - Soft drinks was holding an average PEG ratio of 2.07 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 204, putting it in the bottom 20% 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.
To follow PEP in the coming trading sessions, be sure to utilize Zacks.com.