PepsiCo (PEP) Flat As Market Gains: What You Should Know

·3-min read

PepsiCo (PEP) closed at $145.56 in the latest trading session, marking no change from the prior day. This change lagged the S&P 500's 0.74% gain on the day.

Heading into today, shares of the food and beverage company had gained 2.12% over the past month, lagging the Consumer Staples sector's gain of 3.25% and the S&P 500's gain of 3.21% in that time.

In that report, analysts expect PEP to post earnings of $1.53 per share. This would mark year-over-year growth of 15.91%. Meanwhile, our latest consensus estimate is calling for revenue of $17.76 billion, up 11.4% from the prior-year quarter.

Looking at the full year, our Zacks Consensus Estimates suggest analysts are expecting earnings of $6.05 per share and revenue of $75.22 billion. These totals would mark changes of +9.6% and +6.89%, respectively, from last year.

Any recent changes to analyst estimates for PEP should also be noted by investors. These recent revisions tend to reflect the evolving nature of short-term business trends. With this in mind, we can consider positive estimate revisions a sign of optimism about the company's business outlook.

Research indicates that these estimate revisions are directly correlated with near-term share price momentum. 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. The Zacks Consensus EPS estimate has moved 0.11% higher within the past month. PEP is holding a Zacks Rank of #3 (Hold) right now.

Looking at its valuation, PEP is holding a Forward P/E ratio of 24.06. This valuation marks a no noticeable deviation compared to its industry's average Forward P/E of 24.06.

We can also see that PEP currently has a PEG ratio of 3.01. The PEG ratio is similar to the widely-used P/E ratio, but this metric also takes the company's expected earnings growth rate into account. The Beverages - Soft drinks industry currently had an average PEG ratio of 2.66 as of yesterday's close.

The Beverages - Soft drinks industry is part of the Consumer Staples sector. This group has a Zacks Industry Rank of 168, putting it in the bottom 34% 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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