Yahoo Finance PepsiCo (PEP) Stock Sinks As Market Gains: What You Should Know
In the latest market close, PepsiCo (PEP) reached $166.74, with a -0.36% movement compared to the previous day. This change lagged the S&P 500's 0.16% gain on the day. On the other hand, the Dow registered a gain of 0.04%, and the technology-centric Nasdaq increased by 0.49%.
The the stock of food and beverage company has fallen by 3.48% in the past month, lagging the Consumer Staples sector's loss of 0.93% and the S&P 500's gain of 3.22%.
The investment community will be paying close attention to the earnings performance of PepsiCo in its upcoming release. The company is slated to reveal its earnings on July 11, 2024. It is anticipated that the company will report an EPS of $2.16, marking a 3.35% rise compared to the same quarter of the previous year. Alongside, our most recent consensus estimate is anticipating revenue of $22.63 billion, indicating a 1.39% upward movement from the same quarter last year.
Regarding the entire year, the Zacks Consensus Estimates forecast earnings of $8.16 per share and revenue of $94.25 billion, indicating changes of +7.09% and +3.03%, respectively, compared to the previous year.
Investors should also pay attention to any latest changes in analyst estimates for PepsiCo. These revisions typically reflect the latest short-term business trends, which can change frequently. As a result, we can interpret positive estimate revisions as a good sign for the company's business outlook.
Our research demonstrates that these adjustments in estimates directly associate with imminent stock price performance. To take advantage of this, we've established the Zacks Rank, an exclusive model that considers these estimated changes and delivers an operational 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 0.05% lower within the past month. PepsiCo presently features a Zacks Rank of #3 (Hold).
In the context of valuation, PepsiCo is at present trading with a Forward P/E ratio of 20.5. Its industry sports an average Forward P/E of 19.2, so one might conclude that PepsiCo is trading at a premium comparatively.
We can also see that PEP currently has a PEG ratio of 2.75. The PEG ratio bears resemblance to the frequently used P/E ratio, but this parameter also includes the company's expected earnings growth trajectory. As the market closed yesterday, the Beverages - Soft drinks industry was having an average PEG ratio of 2.75.
The Beverages - Soft drinks industry is part of the Consumer Staples sector. This industry, currently bearing a Zacks Industry Rank of 56, finds itself in the top 23% echelons of all 250+ industries.
The Zacks Industry Rank is ordered 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.
Keep in mind to rely on Zacks.com to watch all these stock-impacting metrics, and more, in the succeeding trading sessions.
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PepsiCo, Inc. (PEP) : Free Stock Analysis Report
