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PepsiCo (PEP) Stock Slides as Market Rises: Facts to Know Before You Trade

The latest trading session saw PepsiCo (PEP) ending at $163.83, denoting a -0.75% adjustment from its last day's close. The stock's performance was behind the S&P 500's daily gain of 0.85%. Elsewhere, the Dow saw a downswing of 0.09%, while the tech-heavy Nasdaq appreciated by 1.53%.

The food and beverage company's shares have seen a decrease of 8.23% over the last month, not keeping up with the Consumer Staples sector's loss of 2.81% and the S&P 500's gain of 3.11%.

Market participants will be closely following the financial results of PepsiCo in its upcoming release. The company plans to announce its earnings on July 11, 2024. The company is expected to report EPS of $2.16, up 3.35% from the prior-year quarter. At the same time, our most recent consensus estimate is projecting a revenue of $22.68 billion, reflecting a 1.59% rise from the equivalent quarter last year.

In terms of the entire fiscal year, the Zacks Consensus Estimates predict earnings of $8.16 per share and a revenue of $94.53 billion, indicating changes of +7.09% and +3.35%, respectively, from the former year.

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Any recent changes to analyst estimates for PepsiCo should also be noted by investors. 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. Investors can capitalize on this by using the Zacks Rank. This model considers these estimate changes and provides a simple, actionable rating system.

The Zacks Rank system, which varies between #1 (Strong Buy) and #5 (Strong Sell), carries an impressive track record of exceeding expectations, confirmed by external audits, with stocks at #1 delivering an average annual return of +25% since 1988. The Zacks Consensus EPS estimate has moved 0.01% higher within the past month. Right now, PepsiCo possesses a Zacks Rank of #2 (Buy).

From a valuation perspective, PepsiCo is currently exchanging hands at a Forward P/E ratio of 20.22. This expresses a premium compared to the average Forward P/E of 18.97 of its industry.

It's also important to note that PEP currently trades at a PEG ratio of 2.69. The PEG ratio bears resemblance to the frequently used P/E ratio, but this parameter also includes the company's expected earnings growth trajectory. The Beverages - Soft drinks industry had an average PEG ratio of 2.69 as trading concluded yesterday.

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 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.

Be sure to follow all of these stock-moving metrics, and many more, on Zacks.com.

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