PepsiCo (PEP) Stock Sinks As Market Gains: What You Should Know
PepsiCo (PEP) closed at $168.92 in the latest trading session, marking a -0.3% move from the prior day.
PepsiCo (PEP) closed at $168.92 in the latest trading session, marking a -0.3% move from the prior day. This move lagged the S&P 500's daily gain of 1.78%. Meanwhile, the Dow gained 1.61%, and the Nasdaq, a tech-heavy index, added 0.95%.
Prior to today's trading, shares of the food and beverage company had gained 3.21% over the past month. This has outpaced the Consumer Staples sector's gain of 2.41% and the S&P 500's loss of 2.63% 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. In that report, analysts expect PepsiCo to post earnings of $1.52 per share. This would mark 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.
Looking at the full year, our Zacks Consensus Estimates suggest analysts are expecting earnings of $6.25 per share and revenue of $78.54 billion. These totals would mark changes of +13.22% and +11.6%, respectively, from last year.
It is also important to note the recent changes to analyst estimates for PepsiCo. These revisions help to show the ever-changing nature of near-term business trends. As a result, we can interpret positive estimate revisions as a good sign for the company's business outlook.
Our research shows that these estimate changes are directly correlated with near-term stock prices. 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. The Zacks Consensus EPS estimate has moved 0.01% higher within the past month. PepsiCo is currently a Zacks Rank #3 (Hold).
Looking at its valuation, PepsiCo is holding a Forward P/E ratio of 27.12. This represents a premium compared to its industry's average Forward P/E of 23.35.
Meanwhile, PEP's PEG ratio is currently 3.1. This metric is used similarly to the famous P/E ratio, but the PEG ratio also takes into account the stock's expected earnings growth rate. The Beverages - Soft drinks industry currently had an average PEG ratio of 2.42 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 191, which puts it in the bottom 25% 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.
You can find more information on all of these metrics, and much more, on Zacks.com.
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