In the latest trading session, PepsiCo (NASDAQ:PEP) closed at $145.31, marking a -0.15% move from the previous day. This move was narrower than the S&P 500's daily loss of 0.38%. At the same time, the Dow lost 0.44%, and the tech-heavy Nasdaq lost 0.67%.
Heading into today, shares of the food and beverage company had gained 1.5% over the past month, outpacing the Consumer Staples sector's loss of 0.63% and lagging the S&P 500's gain of 1.91% in that time.
Wall Street will be looking for positivity from PEP as it approaches its next earnings report date. The company is expected to report EPS of $1.02, up 5.15% from the prior-year quarter. Meanwhile, our latest consensus estimate is calling for revenue of $13.24 billion, up 2.73% from the prior-year quarter.
For the full year, our Zacks Consensus Estimates are projecting earnings of $5.89 per share and revenue of $70.06 billion, which would represent changes of +6.51% and +4.32%, respectively, from the prior year.
It is also important to note the recent changes to analyst estimates for PEP. These revisions help to show the ever-changing nature of 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.
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. Within the past 30 days, our consensus EPS projection has moved 0.91% lower. PEP is currently a Zacks Rank #3 (Hold).
Digging into valuation, PEP currently has a Forward P/E ratio of 24.69. Its industry sports an average Forward P/E of 21.17, so we one might conclude that PEP is trading at a premium comparatively.
Meanwhile, PEP's PEG ratio is currently 3.39. 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 2.3 at yesterday's closing price.
The Beverages - Soft drinks industry is part of the Consumer Staples sector. This industry currently has a Zacks Industry Rank of 69, which puts it in the top 28% 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.
To follow PEP in the coming trading sessions, be sure to utilize Zacks.com.
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