PepsiCo (PEP) Gains As Market Dips: What You Should Know
PepsiCo (PEP) closed at $156.39 in the latest trading session, marking a +0.25% move from the prior day.
PepsiCo (PEP) closed at $156.39 in the latest trading session, marking a +0.25% move from the prior day. This move outpaced the S&P 500's daily loss of 0.14%.
Heading into today, shares of the food and beverage company had lost 0.2% over the past month, trading in line with the Consumer Staples sector and lagging the S&P 500's gain of 3.13% in that time.
PEP will be looking to display strength as it nears its next earnings release, which is expected to be October 5, 2021. The company is expected to report EPS of $1.72, up 3.61% from the prior-year quarter. Our most recent consensus estimate is calling for quarterly revenue of $19.37 billion, up 7.1% from the year-ago period.
PEP's full-year Zacks Consensus Estimates are calling for earnings of $6.24 per share and revenue of $77.27 billion. These results would represent year-over-year changes of +13.04% and +9.8%, respectively.
It is also important to note the recent changes to analyst estimates for PEP. These revisions typically reflect the latest short-term business trends, which can change frequently. As such, positive estimate revisions reflect analyst optimism about the company's business and profitability.
Based on our research, we believe these estimate revisions are directly related to near-team stock moves. To benefit from this, we have developed the Zacks Rank, a proprietary model which takes these estimate changes into account and provides an 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 0.01% higher. PEP is currently sporting a Zacks Rank of #3 (Hold).
Digging into valuation, PEP currently has a Forward P/E ratio of 25.01. For comparison, its industry has an average Forward P/E of 24, which means PEP is trading at a premium to the group.
Also, we should mention that PEP has a PEG ratio of 2.97. 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 2.51 as of yesterday's close.
The Beverages - Soft drinks industry is part of the Consumer Staples sector. This industry currently has a Zacks Industry Rank of 119, which puts it in the top 47% 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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