PepsiCo (PEP - Free Report) closed the most recent trading day at $134.70, moving +0.51% from the previous trading session. This move outpaced the S&P 500's daily gain of 0.49%. At the same time, the Dow added 0.57%, and the tech-heavy Nasdaq gained 0.67%.
Heading into today, shares of the food and beverage company had lost 1.66% over the past month, lagging the Consumer Staples sector's gain of 1.71% and the S&P 500's gain of 3.03% 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 13, 2020. The company is expected to report EPS of $1.43, down 4.03% from the prior-year quarter. Our most recent consensus estimate is calling for quarterly revenue of $20.39 billion, up 4.46% from the year-ago period.
It is also important to note the recent changes to analyst estimates for PEP. These revisions typically reflect the latest short-term business trends, which can change frequently. 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. To benefit from this, we have developed the Zacks Rank, a proprietary model which takes these estimate changes into account and provides an 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. Over the past month, the Zacks Consensus EPS estimate has moved 0.04% lower. PEP currently has a Zacks Rank of #4 (Sell).
Digging into valuation, PEP currently has a Forward P/E ratio of 22.57. Its industry sports an average Forward P/E of 20.27, so we one might conclude that PEP is trading at a premium comparatively.
It is also worth noting that PEP currently has a PEG ratio of 3.23. 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. Beverages - Soft drinks stocks are, on average, holding a PEG ratio of 1.98 based on yesterday's closing prices.
The Beverages - Soft drinks industry is part of the Consumer Staples sector. This group has a Zacks Industry Rank of 170, putting it in the bottom 34% 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.