In the latest trading session, PepsiCo (NASDAQ:PEP) closed at $156.52, marking a +0.94% move from the previous day. The stock outpaced the S&P 500's daily gain of 0.16%.
Coming into today, shares of the food and beverage company had lost 0.12% in the past month. In that same time, the Consumer Staples sector gained 0.02%, while the S&P 500 gained 1.75%.
Investors will be hoping for strength from PEP as it approaches its next earnings release. In that report, analysts expect PEP to post earnings of $1.72 per share. This would mark year-over-year growth of 3.61%. Meanwhile, our latest consensus estimate is calling for revenue of $19.37 billion, up 7.08% from the prior-year quarter.
PEP's full-year Zacks Consensus Estimates are calling for earnings of $6.24 per share and revenue of $77.21 billion. These results would represent year-over-year changes of +13.04% and +9.71%, respectively.
Investors should also note any recent changes to analyst estimates for PEP. These revisions typically reflect the latest short-term business trends, which can change frequently. 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 0.23% lower within the past month. PEP currently has a Zacks Rank of #3 (Hold).
In terms of valuation, PEP is currently trading at a Forward P/E ratio of 24.87. This valuation marks a premium compared to its industry's average Forward P/E of 23.33.
We can also see that PEP currently has a PEG ratio of 2.95. 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 2.45 as of yesterday's close.
The Beverages - Soft drinks industry is part of the Consumer Staples sector. This group has a Zacks Industry Rank of 229, putting it in the bottom 10% 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.
You can find more information on all of these metrics, and much more, on Zacks.com.
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