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PepsiCo (PEP) closed the most recent trading day at $152.81, moving +1% from the previous trading session. The stock fell short of the S&P 500, which registered a gain of 1.1% for the day. Meanwhile, the Dow gained 0.91%, and the Nasdaq, a tech-heavy index, added 1.35%.
Coming into today, shares of the food and beverage company had lost 7.21% in the past month. In that same time, the Consumer Staples sector lost 4.15%, while the S&P 500 gained 0.22%.
Market participants will be closely following the financial results of PepsiCo in its upcoming release. The company plans to announce its earnings on February 4, 2025. In that report, analysts expect PepsiCo to post earnings of $1.95 per share. This would mark year-over-year growth of 9.55%. Meanwhile, the Zacks Consensus Estimate for revenue is projecting net sales of $28.08 billion, up 0.82% from the year-ago period.
For the full year, the Zacks Consensus Estimates project earnings of $8.15 per share and a revenue of $92.13 billion, demonstrating changes of +6.96% and +0.72%, respectively, from the preceding year.
Any recent changes to analyst estimates for PepsiCo should also be noted by investors. These revisions help to show the ever-changing nature of near-term business trends. Therefore, positive revisions in estimates convey analysts' confidence in the company's business performance and profit potential.
Our research shows that these estimate changes are directly correlated with near-term stock prices. To capitalize on this, we've crafted the Zacks Rank, a unique model that incorporates these estimate changes and offers a practical rating system.
The Zacks Rank system, stretching from #1 (Strong Buy) to #5 (Strong Sell), has a noteworthy track record of outperforming, validated by third-party audits, with stocks rated #1 producing an average annual return of +25% since the year 1988. Over the last 30 days, the Zacks Consensus EPS estimate has moved 0.02% lower. As of now, PepsiCo holds a Zacks Rank of #4 (Sell).
Investors should also note PepsiCo's current valuation metrics, including its Forward P/E ratio of 18.56. This signifies a premium in comparison to the average Forward P/E of 18.24 for its industry.
Also, we should mention that PEP has a PEG ratio of 2.87. The PEG ratio is similar to the widely-used P/E ratio, but this metric also takes the company's expected earnings growth rate into account. PEP's industry had an average PEG ratio of 2.62 as of yesterday's close.
The Beverages - Soft drinks industry is part of the Consumer Staples sector. With its current Zacks Industry Rank of 167, this industry ranks in the bottom 34% of all industries, numbering over 250.