In the latest trading session, PepsiCo (PEP - Free Report) closed at $131.26, marking a -0.36% move from the previous day. This change lagged the S&P 500's 1.67% gain on the day. Elsewhere, the Dow gained 1.53%, while the tech-heavy Nasdaq added 2.08%.
PEP will be looking to display strength as it nears its next earnings release. The company is expected to report EPS of $1.25, down 18.83% from the prior-year quarter. Meanwhile, the Zacks Consensus Estimate for revenue is projecting net sales of $15.68 billion, down 4.65% from the year-ago period.
For the full year, our Zacks Consensus Estimates are projecting earnings of $5.32 per share and revenue of $67.59 billion, which would represent changes of -3.8% and +0.64%, respectively, from the prior year.
Investors should also note any recent changes to analyst estimates for PEP. These recent revisions tend to reflect the evolving nature of short-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.
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 7.03% lower. PEP is holding a Zacks Rank of #3 (Hold) right now.
Valuation is also important, so investors should note that PEP has a Forward P/E ratio of 24.75 right now. Its industry sports an average Forward P/E of 20.8, so we one might conclude that PEP is trading at a premium comparatively.
Also, we should mention that PEP has a PEG ratio of 5.04. 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 4.36 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 137, which puts it in the bottom 47% 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.
To follow PEP in the coming trading sessions, be sure to utilize Zacks.com.