In the latest trading session, PepsiCo (PEP) closed at $140.06, marking a +0.09% move from the previous day. This change outpaced the S&P 500’s 0.22% loss on the day. Elsewhere, the Dow lost 0.78%, while the tech-heavy Nasdaq added 0.68%.
Prior to today’s trading, shares of the food and beverage company had gained 1.63% over the past month. This has lagged the Consumer Staples sector’s gain of 3.46% and the S&P 500’s gain of 9.15% 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 October 1, 2020. On that day, PEP is projected to report earnings of $1.47 per share, which would represent a year-over-year decline of 5.77%. Meanwhile, our latest consensus estimate is calling for revenue of $17.26 billion, up 0.41% from the prior-year quarter.
PEP’s full-year Zacks Consensus Estimates are calling for earnings of $5.34 per share and revenue of $68.31 billion. These results would represent year-over-year changes of -3.44% and +1.72%, respectively.
It is also important to note the recent changes to analyst estimates for PEP. These revisions typically reflect the latest short-term business trends, which can change frequently. With this in mind, we can consider positive estimate revisions a sign of optimism about the company’s business outlook.
Based on our research, we believe these estimate revisions are directly related to near-team stock moves. 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.
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. The Zacks Consensus EPS estimate remained stagnant within the past month. PEP is currently sporting a Zacks Rank of #3 (Hold).
In terms of valuation, PEP is currently trading at a Forward P/E ratio of 26.19. This represents a premium compared to its industry’s average Forward P/E of 23.01.
Investors should also note that PEP has a PEG ratio of 4.67 right now. This popular metric is similar to the widely-known P/E ratio, with the difference being that the PEG ratio also takes into account the company’s expected earnings growth rate. Beverages – Soft drinks stocks are, on average, holding a PEG ratio of 4.67 based on yesterday’s closing prices.
The Beverages – Soft drinks industry is part of the Consumer Staples sector. This group has a Zacks Industry Rank of 117, putting it in the top 47% 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.
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PepsiCo, Inc. (PEP): Free Stock Analysis Report
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