PepsiCo (PEP) Stock Sinks As Market Gains: What You Should Know
PepsiCo (PEP) closed the most recent trading day at $146.37, moving -0.93% from the previous trading session. This change lagged the S&P 500's 0.02% gain on the day.
Prior to today's trading, shares of the food and beverage company had gained 0.7% over the past month. This has lagged the Consumer Staples sector's gain of 2.4% and outpaced the S&P 500's gain of 0.04% in that time.
Wall Street will be looking for positivity from PEP as it approaches its next earnings report date. This is expected to be July 13, 2021. The company is expected to report EPS of $1.51, up 14.39% from the prior-year quarter. Our most recent consensus estimate is calling for quarterly revenue of $17.76 billion, up 11.4% from the year-ago period.
For the full year, our Zacks Consensus Estimates are projecting earnings of $6.05 per share and revenue of $75.22 billion, which would represent changes of +9.6% and +6.89%, respectively, from the prior year.
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. 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. 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 remained stagnant. PEP is currently sporting a Zacks Rank of #3 (Hold).
Valuation is also important, so investors should note that PEP has a Forward P/E ratio of 24.42 right now. This valuation marks a premium compared to its industry's average Forward P/E of 23.
Meanwhile, PEP's PEG ratio is currently 3.06. 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. The Beverages - Soft drinks was holding an average PEG ratio of 2.73 at yesterday's closing price.
The Beverages - Soft drinks industry is part of the Consumer Staples sector. This group has a Zacks Industry Rank of 97, putting it in the top 39% of all 250+ industries.
The Zacks Industry Rank gauges the strength of our individual 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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