PepsiCo (PEP) closed the most recent trading day at $173.94, moving -0.72% from the previous trading session. This move was narrower than the S&P 500's daily loss of 1.1%. Elsewhere, the Dow lost 0.89%, while the tech-heavy Nasdaq added 0.03%.
Coming into today, shares of the food and beverage company had gained 3.08% in the past month. In that same time, the Consumer Staples sector gained 2.14%, while the S&P 500 lost 1.81%.
PepsiCo will be looking to display strength as it nears its next earnings release, which is expected to be February 10, 2022. The company is expected to report EPS of $1.53, up 4.08% from the prior-year quarter. Meanwhile, the Zacks Consensus Estimate for revenue is projecting net sales of $24.35 billion, up 8.45% from the year-ago period.
It is also important to note the recent changes to analyst estimates for PepsiCo. Recent revisions tend to reflect the latest near-term business trends. 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. We developed the Zacks Rank to capitalize on this phenomenon. Our system takes these estimate changes into account and delivers a clear, actionable rating model.
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. Over the past month, the Zacks Consensus EPS estimate has moved 0.09% lower. PepsiCo is currently a Zacks Rank #4 (Sell).
Valuation is also important, so investors should note that PepsiCo has a Forward P/E ratio of 26.01 right now. This valuation marks a premium compared to its industry's average Forward P/E of 22.52.
Also, we should mention that PEP has a PEG ratio of 3.08. 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. PEP's industry had an average PEG ratio of 2.14 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 178, putting it in the bottom 31% of all 250+ industries.
The Zacks Industry Rank includes is listed in order from best to worst in terms of the average Zacks Rank of the individual companies within each of these sectors. 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.
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