In the latest trading session, PepsiCo (PEP) closed at $113.05, marking a +0.13% move from the previous day. The stock outpaced the S&P 500's daily loss of 0.22%. At the same time, the Dow lost 0.08%, and the tech-heavy Nasdaq lost 0.36%.
Coming into today, shares of the food and beverage company had gained 2.1% in the past month. In that same time, the Consumer Staples sector gained 6.23%, while the S&P 500 gained 8.17%.
Investors will be hoping for strength from PEP as it approaches its nex t earnings release, which is expected to be February 15, 2019. The company is expected to report EPS of $1.49, up 13.74% from the prior-year quarter. Our most recent consensus estimate is calling for quarterly revenue of $19.51 billion, down 0.06% from the year-ago period.
Investors should also note any recent changes to analyst estimates for PEP. These recent revisions tend to reflect the evolving nature of short-term business trends. With this in mind, we can consider positive estimate revisions a sign of optimism about the company's business outlook.
Research indicates that these estimate revisions are directly correlated with near-term share price momentum. To benefit from this, we have developed the Zacks Rank, a proprietary model which takes these estimate changes into account and provides an actionable rating system.
Ranging from #1 (Strong Buy) to #5 (Strong Sell), the Zacks Rank system has a proven, outside-audited track record of outperformance, with #1 stocks returning an average of +25% annually since 1988. Over the past month, the Zacks Consensus EPS estimate has moved 2.17% lower. PEP is currently sporting a Zacks Rank of #4 (Sell).
Looking at its valuation, PEP is holding a Forward P/E ratio of 19.47. This valuation marks a discount compared to its industry's average Forward P/E of 20.52.
Also, we should mention that PEP has a PEG ratio of 2.78. 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. Beverages - Soft drinks stocks are, on average, holding a PEG ratio of 1.86 based on yesterday's closing prices.
The Beverages - Soft drinks industry is part of the Consumer Staples sector. This industry currently has a Zacks Industry Rank of 152, which puts it in the bottom 41% 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.
To follow PEP in the coming trading sessions, be sure to utilize Zacks.com.