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The most recent trading session ended with PepsiCo (PEP) standing at $152.02, reflecting a +0.34% shift from the previouse trading day's closing. The stock's change was more than the S&P 500's daily loss of 1.59%. At the same time, the Dow lost 0.45%, and the tech-heavy Nasdaq lost 2.78%.
Heading into today, shares of the food and beverage company had gained 0.76% over the past month, lagging the Consumer Staples sector's gain of 6.01% and outpacing the S&P 500's loss of 2.23% in that time.
The investment community will be closely monitoring the performance of PepsiCo in its forthcoming earnings report. The company is forecasted to report an EPS of $1.54, showcasing a 4.35% downward movement from the corresponding quarter of the prior year. Simultaneously, our latest consensus estimate expects the revenue to be $17.8 billion, showing a 2.45% drop compared to the year-ago quarter.
Looking at the full year, the Zacks Consensus Estimates suggest analysts are expecting earnings of $8.30 per share and revenue of $91.75 billion. These totals would mark changes of +1.72% and -0.11%, respectively, from last year.
Furthermore, it would be beneficial for investors to monitor any recent shifts in analyst projections for PepsiCo. These recent revisions tend to reflect the evolving nature of short-term business trends. Therefore, positive revisions in estimates convey analysts' confidence in the company's business performance and profit potential.
Our research reveals that these estimate alterations are directly linked with the stock price performance in the near future. 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, ranging from #1 (Strong Buy) to #5 (Strong Sell), possesses a remarkable history of outdoing, externally audited, with #1 stocks returning an average annual gain of +25% since 1988. Over the last 30 days, the Zacks Consensus EPS estimate has moved 2.55% lower. Right now, PepsiCo possesses a Zacks Rank of #4 (Sell).
Valuation is also important, so investors should note that PepsiCo has a Forward P/E ratio of 18.26 right now. This expresses a discount compared to the average Forward P/E of 18.98 of its industry.
We can additionally observe that PEP currently boasts a PEG ratio of 3.16. The PEG ratio is akin to the commonly utilized P/E ratio, but this measure also incorporates the company's anticipated earnings growth rate. By the end of yesterday's trading, the Beverages - Soft drinks industry had an average PEG ratio of 2.46.