PepsiCo (PEP) Sees a More Significant Dip Than Broader Market: Some Facts to Know
In the latest trading session, PepsiCo (PEP) closed at $171.15, marking a -1.29% move from the previous day. This change lagged the S&P 500's daily loss of 0.74%. Meanwhile, the Dow experienced a drop of 1.06%, and the technology-dominated Nasdaq saw a decrease of 0.58%.
The food and beverage company's stock has dropped by 1.44% in the past month, falling short of the Consumer Staples sector's gain of 0.09% and the S&P 500's gain of 4.27%.
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. It is anticipated that the company will report an EPS of $2.16, marking a 3.35% rise compared to the same quarter of the previous year. Our most recent consensus estimate is calling for quarterly revenue of $22.68 billion, up 1.59% from the year-ago period.
In terms of the entire fiscal year, the Zacks Consensus Estimates predict earnings of $8.17 per share and a revenue of $94.55 billion, indicating changes of +7.22% and +3.37%, respectively, from the former year.
Investors should also take note of any recent adjustments to analyst estimates for PepsiCo. These latest adjustments often mirror the shifting dynamics of short-term business patterns. As a result, we can interpret positive estimate revisions as a good sign for the company's business outlook.
Research indicates that these estimate revisions are directly correlated with near-term share price momentum. To exploit this, we've formed the Zacks Rank, a quantitative model that includes these estimate changes and presents a viable rating system.
The Zacks Rank system, ranging from #1 (Strong Buy) to #5 (Strong Sell), possesses a remarkable history of outdoing, externally audited, with #1 stocks returning an average annual gain of +25% since 1988. Over the past month, the Zacks Consensus EPS estimate has moved 0.04% higher. PepsiCo presently features a Zacks Rank of #2 (Buy).
Investors should also note PepsiCo's current valuation metrics, including its Forward P/E ratio of 21.23. This represents a premium compared to its industry's average Forward P/E of 19.43.
We can also see that PEP currently has a PEG ratio of 2.83. 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 average PEG ratio for the Beverages - Soft drinks industry stood at 2.83 at the close of the market yesterday.
The Beverages - Soft drinks industry is part of the Consumer Staples sector. This industry, currently bearing a Zacks Industry Rank of 164, finds itself in the bottom 35% echelons of all 250+ industries.
The Zacks Industry Rank evaluates the power of our distinct industry groups by determining the average Zacks Rank of the individual stocks forming the groups. Our research shows that the top 50% rated industries outperform the bottom half by a factor of 2 to 1.
Remember to apply Zacks.com to follow these and more stock-moving metrics during the upcoming trading sessions.
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PepsiCo, Inc. (PEP) : Free Stock Analysis Report
