In the latest trading session, PepsiCo (PEP) closed at $151.72, marking a -0.77% move from the previous day. This change was narrower than the S&P 500's 1.07% loss on the day. Meanwhile, the Dow lost 0.97%, and the Nasdaq, a tech-heavy index, lost 1.19%.
The food and beverage company's shares have seen a decrease of 6.46% over the last month, not keeping up with the Consumer Staples sector's loss of 4.74% and the S&P 500's loss of 0.36%.
The investment community will be closely monitoring the performance of PepsiCo in its forthcoming earnings report. The company is scheduled to release its earnings on February 4, 2025. On that day, PepsiCo is projected to report earnings of $1.95 per share, which would represent year-over-year growth of 9.55%. At the same time, our most recent consensus estimate is projecting a revenue of $28.08 billion, reflecting a 0.82% rise from the equivalent quarter last year.
For the annual period, the Zacks Consensus Estimates anticipate earnings of $8.15 per share and a revenue of $92.13 billion, signifying shifts of +6.96% and +0.72%, respectively, from the last year.
Investors should also note any recent changes to analyst estimates for PepsiCo. These recent revisions tend to reflect the evolving nature of short-term business trends. As such, positive estimate revisions reflect analyst optimism about the company's business and profitability.
Our research shows that these estimate changes are directly correlated with near-term stock prices. To take advantage of this, we've established the Zacks Rank, an exclusive model that considers these estimated changes and delivers an operational rating system.
The Zacks Rank system, stretching from #1 (Strong Buy) to #5 (Strong Sell), has a noteworthy track record of outperforming, validated by third-party audits, with stocks rated #1 producing an average annual return of +25% since the year 1988. Over the past month, there's been a 0.02% fall in the Zacks Consensus EPS estimate. PepsiCo presently features a Zacks Rank of #3 (Hold).
In terms of valuation, PepsiCo is currently trading at a Forward P/E ratio of 18.76. This represents a premium compared to its industry's average Forward P/E of 18.41.
Meanwhile, PEP's PEG ratio is currently 2.9. 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 2.65 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 181, finds itself in the bottom 28% echelons 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.
Be sure to follow all of these stock-moving metrics, and many more, on Zacks.com.
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