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In the latest trading session, PepsiCo (PEP) closed at $169.53, marking a -1.06% move from the previous day. This change lagged the S&P 500's daily loss of 0.15%. Elsewhere, the Dow lost 0.38%, while the tech-heavy Nasdaq lost 0.05%.
Prior to today's trading, shares of the food and beverage company had lost 0.59% over the past month. This has lagged the Consumer Staples sector's loss of 0.41% and was narrower than the S&P 500's loss of 7.66% in that time.
Investors will be hoping for strength from PepsiCo as it approaches its next earnings release, which is expected to be February 10, 2022. On that day, PepsiCo is projected to report earnings of $1.53 per share, which would represent year-over-year growth of 4.08%. Meanwhile, the Zacks Consensus Estimate for revenue is projecting net sales of $24.35 billion, up 8.45% from the year-ago period.
Investors should also note any recent changes to analyst estimates for PepsiCo. These revisions help to show the ever-changing nature of near-term business trends. As a result, we can interpret positive estimate revisions as a good sign for 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.
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 0.09% lower within the past month. PepsiCo is currently sporting a Zacks Rank of #4 (Sell).
Looking at its valuation, PepsiCo is holding a Forward P/E ratio of 25.44. This valuation marks a premium compared to its industry's average Forward P/E of 22.51.
Investors should also note that PEP has a PEG ratio of 3.01 right now. 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. Beverages - Soft drinks stocks are, on average, holding a PEG ratio of 2.13 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 204, which puts it in the bottom 20% 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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