PepsiCo (PEP) Outpaces Stock Market Gains: What You Should Know
In the latest trading session, PepsiCo (PEP) closed at $148.57, marking a +0.6% move from the previous day. This move outpaced the S&P 500's daily gain of 0.18%.
Coming into today, shares of the food and beverage company had gained 0.75% in the past month. In that same time, the Consumer Staples sector gained 1.83%, while the S&P 500 gained 2.43%.
PEP will be looking to display strength as it nears its next earnings release, which is expected to be July 13, 2021. On that day, PEP is projected to report earnings of $1.51 per share, which would represent year-over-year growth of 14.39%. Meanwhile, the Zacks Consensus Estimate for revenue is projecting net sales of $17.76 billion, up 11.4% from the year-ago period.
For the full year, our Zacks Consensus Estimates are projecting earnings of $6.05 per share and revenue of $75.22 billion, which would represent changes of +9.6% and +6.89%, respectively, from the prior year.
Any recent changes to analyst estimates for PEP should also be noted by investors. These revisions help to show the ever-changing nature of near-term business trends. As such, positive estimate revisions reflect analyst optimism about the company's business and profitability.
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.
Ranging from #1 (Strong Buy) to #5 (Strong Sell), the Zacks Rank system has a proven, outside-audited track record of outperformance, with #1 stocks returning an average of +25% annually since 1988. Over the past month, the Zacks Consensus EPS estimate remained stagnant. PEP is currently a Zacks Rank #3 (Hold).
Investors should also note PEP's current valuation metrics, including its Forward P/E ratio of 24.41. This represents a premium compared to its industry's average Forward P/E of 23.44.
Investors should also note that PEP has a PEG ratio of 3.06 right now. 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. Beverages - Soft drinks stocks are, on average, holding a PEG ratio of 2.7 based on yesterday's closing prices.
The Beverages - Soft drinks industry is part of the Consumer Staples sector. This group has a Zacks Industry Rank of 125, putting it in the top 50% 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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