This story originally appeared on Zacks
In the latest trading session, PepsiCo (PEP) closed at $175.37, marking a -0.06% move from the previous day. This change was narrower than the S&P 500’s 2.44% loss on the day. Meanwhile, the Dow lost 1.45%, and the Nasdaq, a tech-heavy index, lost 0.41%.
Heading into today, shares of the food and beverage company had gained 0.95% over the past month, outpacing the Consumer Staples sector’s loss of 0.64% and the S&P 500’s loss of 3.72% in that time.
Wall Street will be looking for positivity from PepsiCo as it approaches its next earnings report date. This is expected to be February 10, 2022. The company is expected to report EPS of $1.53, up 4.08% from the prior-year quarter. Our most recent consensus estimate is calling for quarterly revenue of $24.32 billion, up 8.29% from the year-ago period.
Any recent changes to analyst estimates for PepsiCo should also be noted by investors. These revisions typically reflect the latest short-term business trends, which can change frequently. 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. 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.
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. Over the past month, the Zacks Consensus EPS estimate has moved 0.07% lower. PepsiCo is holding a Zacks Rank of #4 (Sell) right now.
Valuation is also important, so investors should note that PepsiCo has a Forward P/E ratio of 26.06 right now. This valuation marks a premium compared to its industry’s average Forward P/E of 22.92.
Also, we should mention that PEP has a PEG ratio of 3.08. 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 2.15 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 174, which puts it in the bottom 32% 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.
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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