PepsiCo (PEP) closed at $166.61 in the latest trading session, marking a -1.22% move from the prior day. This change was narrower than the S&P 500's 2.11% loss on the day. At the same time, the Dow lost 1.54%, and the tech-heavy Nasdaq lost 0.3%.
Coming into today, shares of the food and beverage company had lost 2.09% in the past month. In that same time, the Consumer Staples sector lost 7.43%, while the S&P 500 lost 8.19%.
PepsiCo will be looking to display strength as it nears its next earnings release, which is expected to be October 12, 2022. The company is expected to report EPS of $1.84, up 2.79% from the prior-year quarter. Our most recent consensus estimate is calling for quarterly revenue of $20.83 billion, up 3.18% from the year-ago period.
Looking at the full year, our Zacks Consensus Estimates suggest analysts are expecting earnings of $6.66 per share and revenue of $83.92 billion. These totals would mark changes of +6.39% and +5.6%, respectively, from last year.
Investors might also notice recent changes to analyst estimates for PepsiCo. Recent revisions tend to reflect the latest near-term business trends. As such, positive estimate revisions reflect analyst optimism about the company's business and profitability.
Based on our research, we believe these estimate revisions are directly related to near-team stock moves. Investors can capitalize on this by using the Zacks Rank. This model considers these estimate changes and provides a simple, actionable rating system.
The Zacks Rank system ranges from #1 (Strong Buy) to #5 (Strong Sell). It has a remarkable, outside-audited track record of success, with #1 stocks delivering an average annual return of +25% since 1988. Within the past 30 days, our consensus EPS projection has moved 0.06% higher. PepsiCo is currently a Zacks Rank #2 (Buy).
Looking at its valuation, PepsiCo is holding a Forward P/E ratio of 25.31. This represents a premium compared to its industry's average Forward P/E of 23.12.
It is also worth noting that PEP currently has a PEG ratio of 3.3. This popular metric is similar to the widely-known P/E ratio, with the difference being that the PEG ratio also takes into account the company's expected earnings growth rate. Beverages - Soft drinks stocks are, on average, holding a PEG ratio of 3.09 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 74, putting it in the top 30% 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.
Be sure to follow all of these stock-moving metrics, and many more, on Zacks.com.
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