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In the latest market close, PepsiCo (PEP) reached $148.56, with a +0.15% movement compared to the previous day. The stock lagged the S&P 500's daily gain of 2.13%. Elsewhere, the Dow saw an upswing of 1.65%, while the tech-heavy Nasdaq appreciated by 2.61%.
Heading into today, shares of the food and beverage company had gained 2.6% over the past month, outpacing the Consumer Staples sector's gain of 2.27% and the S&P 500's loss of 9.57% in that time.
Market participants will be closely following the financial results of PepsiCo in its upcoming release. The company plans to announce its earnings on April 24, 2025. The company is predicted to post an EPS of $1.53, indicating a 4.97% decline compared to the equivalent quarter last year. In the meantime, our current consensus estimate forecasts the revenue to be $17.8 billion, indicating a 2.45% decline compared to the corresponding quarter of the prior year.
For the full year, the Zacks Consensus Estimates project earnings of $8.29 per share and a revenue of $91.74 billion, demonstrating changes of +1.59% and -0.12%, respectively, from the preceding year.
Furthermore, it would be beneficial for investors to monitor any recent shifts in analyst projections for PepsiCo. Recent revisions tend to reflect the latest near-term business trends. As such, positive estimate revisions reflect analyst optimism about the company's business and profitability.
Our research shows that these estimate changes are directly correlated with near-term stock prices. We developed the Zacks Rank to capitalize on this phenomenon. Our system takes these estimate changes into account and delivers a clear, actionable rating model.
The Zacks Rank system, spanning from #1 (Strong Buy) to #5 (Strong Sell), boasts an impressive track record of outperformance, audited externally, with #1 ranked stocks yielding an average annual return of +25% since 1988. The Zacks Consensus EPS estimate has moved 0.58% lower within the past month. PepsiCo is currently sporting a Zacks Rank of #4 (Sell).
Digging into valuation, PepsiCo currently has a Forward P/E ratio of 17.89. This expresses a discount compared to the average Forward P/E of 18.46 of its industry.
It is also worth noting that PEP currently has a PEG ratio of 3.1. Comparable to the widely accepted P/E ratio, the PEG ratio also accounts for the company's projected earnings growth. The Beverages - Soft drinks was holding an average PEG ratio of 2.55 at yesterday's closing price.
The Beverages - Soft drinks industry is part of the Consumer Staples sector. With its current Zacks Industry Rank of 86, this industry ranks in the top 35% of all industries, numbering over 250.