Advertisement
New Zealand markets closed
  • NZX 50

    12,105.29
    +94.63 (+0.79%)
     
  • NZD/USD

    0.5972
    -0.0003 (-0.05%)
     
  • NZD/EUR

    0.5536
    +0.0003 (+0.05%)
     
  • ALL ORDS

    8,153.70
    +80.10 (+0.99%)
     
  • ASX 200

    7,896.90
    +77.30 (+0.99%)
     
  • OIL

    83.11
    -0.06 (-0.07%)
     
  • GOLD

    2,254.80
    +16.40 (+0.73%)
     
  • NASDAQ

    18,254.69
    -26.15 (-0.14%)
     
  • FTSE

    7,952.62
    +20.64 (+0.26%)
     
  • Dow Jones

    39,807.37
    +47.29 (+0.12%)
     
  • DAX

    18,492.49
    +15.40 (+0.08%)
     
  • Hang Seng

    16,541.42
    +148.58 (+0.91%)
     
  • NIKKEI 225

    40,369.44
    +201.37 (+0.50%)
     
  • NZD/JPY

    90.3470
    -0.0460 (-0.05%)
     

PepsiCo (PEP) Outpaces Stock Market Gains: What You Should Know

In the latest trading session, PepsiCo (PEP) closed at $182.40, marking a +0.16% move from the previous day. The stock outpaced the S&P 500's daily gain of 0.12%. Elsewhere, the Dow gained 0.13%, while the tech-heavy Nasdaq lost 4.09%.

Heading into today, shares of the food and beverage company had lost 6.78% over the past month, lagging the Consumer Staples sector's loss of 4.6% and the S&P 500's gain of 3.98% in that time.

Investors will be hoping for strength from PepsiCo as it approaches its next earnings release, which is expected to be July 13, 2023. In that report, analysts expect PepsiCo to post earnings of $1.95 per share. This would mark year-over-year growth of 4.84%. Our most recent consensus estimate is calling for quarterly revenue of $21.63 billion, up 6.97% from the year-ago period.

Looking at the full year, our Zacks Consensus Estimates suggest analysts are expecting earnings of $7.30 per share and revenue of $90.66 billion. These totals would mark changes of +7.51% and +4.94%, respectively, from last year.

ADVERTISEMENT

Any recent changes to analyst estimates for PepsiCo should also be noted by investors. Recent revisions tend to reflect the latest near-term business trends. As a result, we can interpret positive estimate revisions as a good sign for the company's business outlook.

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 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 remained stagnant. PepsiCo currently has a Zacks Rank of #2 (Buy).

Valuation is also important, so investors should note that PepsiCo has a Forward P/E ratio of 24.96 right now. This valuation marks a premium compared to its industry's average Forward P/E of 23.08.

Meanwhile, PEP's PEG ratio is currently 3.18. 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 2.49 as of yesterday's close.

The Beverages - Soft drinks industry is part of the Consumer Staples sector. This group has a Zacks Industry Rank of 27, putting it in the top 11% 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.

Make sure to utilize Zacks.com to follow all of these stock-moving metrics, and more, in the coming trading sessions.

Want the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days. Click to get this free report

PepsiCo, Inc. (PEP) : Free Stock Analysis Report

To read this article on Zacks.com click here.

Zacks Investment Research