PepsiCo (PEP) closed the most recent trading day at $148.34, moving +0.11% from the previous trading session. The stock exceeded the S&P 500, which registered a loss of 0.91% for the day. On the other hand, the Dow registered a loss of 1.5%, and the technology-centric Nasdaq decreased by 1.96%.
The food and beverage company's shares have seen an increase of 2.9% over the last month, not keeping up with the Consumer Staples sector's gain of 3.05% and outstripping the S&P 500's loss of 7.38%.
Analysts and investors alike will be keeping a close eye on the performance of PepsiCo in its upcoming earnings disclosure. The company is expected to report EPS of $1.53, down 4.97% from the prior-year quarter. Meanwhile, our latest consensus estimate is calling for revenue of $17.8 billion, down 2.45% from the prior-year quarter.
For the full year, the Zacks Consensus Estimates are projecting earnings of $8.29 per share and revenue of $91.75 billion, which would represent changes of +1.59% and -0.11%, respectively, from the prior year.
It's also important for investors to be aware of any recent modifications to analyst estimates for PepsiCo. These latest adjustments often mirror the shifting dynamics of short-term business patterns. With this in mind, we can consider positive estimate revisions a sign of optimism about the company's business outlook.
Research indicates that these estimate revisions are directly correlated with near-term share price momentum. To utilize this, we have created the Zacks Rank, a proprietary model that integrates these estimate changes and provides a functional rating system.
The Zacks Rank system, which varies between #1 (Strong Buy) and #5 (Strong Sell), carries an impressive track record of exceeding expectations, confirmed by external audits, with stocks at #1 delivering an average annual return of +25% since 1988. Over the last 30 days, the Zacks Consensus EPS estimate has witnessed a 0.58% decrease. Right now, PepsiCo possesses a Zacks Rank of #4 (Sell).
Investors should also note PepsiCo's current valuation metrics, including its Forward P/E ratio of 17.87. This indicates a discount in contrast to its industry's Forward P/E of 18.59.
We can also see that PEP currently has a PEG ratio of 3.1. The PEG ratio bears resemblance to the frequently used P/E ratio, but this parameter also includes the company's expected earnings growth trajectory. As of the close of trade yesterday, the Beverages - Soft drinks industry held an average PEG ratio of 2.53.
The Beverages - Soft drinks industry is part of the Consumer Staples sector. This group has a Zacks Industry Rank of 66, putting it in the top 27% of all 250+ industries.
The Zacks Industry Rank evaluates the power of our distinct industry groups by determining the average Zacks Rank of the individual stocks forming the groups. Our research shows that the top 50% rated industries outperform the bottom half by a factor of 2 to 1.
Keep in mind to rely on Zacks.com to watch all these stock-impacting metrics, and more, in the succeeding trading sessions.
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This article originally published on Zacks Investment Research (zacks.com).
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