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PepsiCo (PEP) Gains As Market Dips: What You Should Know

PepsiCo (PEP) closed the most recent trading day at $169.42, moving +0.67% from the previous trading session.

This story originally appeared on Zacks

In the latest trading session, PepsiCo (PEP) closed at $169.42, marking a +0.67% move from the previous day. This change outpaced the S&P 500's 1.14% loss on the day. Meanwhile, the Dow lost 1.23%, and the Nasdaq, a tech-heavy index, lost 0.36%.

- Zacks

Heading into today, shares of the food and beverage company had gained 2.74% over the past month, outpacing the Consumer Staples sector's gain of 1.61% and the S&P 500's loss of 1.37% in that time.

Wall Street will be looking for positivity from PepsiCo as it approaches its next earnings report date. This is expected to be February 10, 2022. On that day, PepsiCo is projected to report earnings of $1.52 per share, which would represent year-over-year growth of 3.4%. Our most recent consensus estimate is calling for quarterly revenue of $24.32 billion, up 8.29% from the year-ago period.

PEP's full-year Zacks Consensus Estimates are calling for earnings of $6.25 per share and revenue of $78.54 billion. These results would represent year-over-year changes of +13.22% and +11.6%, respectively.

Investors might also notice recent changes to analyst estimates for PepsiCo. 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.

Research indicates that these estimate revisions are directly correlated with near-term share price momentum. Investors can capitalize on this by using the Zacks Rank. This model considers these estimate changes and provides a simple, actionable rating system.

The Zacks Rank system, which ranges from #1 (Strong Buy) to #5 (Strong Sell), has an impressive outside-audited track record of outperformance, with #1 stocks generating an average annual return of +25% since 1988. Within the past 30 days, our consensus EPS projection has moved 0.01% higher. PepsiCo is currently a Zacks Rank #3 (Hold).

Digging into valuation, PepsiCo currently has a Forward P/E ratio of 26.94. This valuation marks a premium compared to its industry's average Forward P/E of 22.37.

Meanwhile, PEP's PEG ratio is currently 3.08. This popular metric is similar to the widely-known P/E ratio, with the difference being that the PEG ratio also takes into account the company's expected earnings growth rate. PEP's industry had an average PEG ratio of 2.44 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 187, which puts it in the bottom 27% 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.

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