PepsiCo (PEP) Advances But Underperforms Market: Key Facts

PepsiCo (PEP) closed the most recent trading day at $152.81, moving +1% from the previous trading session. The stock fell short of the S&P 500, which registered a gain of 1.1% for the day. Meanwhile, the Dow gained 0.91%, and the Nasdaq, a tech-heavy index, added 1.35%.Coming into today, shares of the food and beverage company had lost 7.21% in the past month. In that same time, the Consumer Staples sector lost 4.15%, while the S&P 500 gained 0.22%.Market participants will be closely following the financial results of PepsiCo in its upcoming release. The company plans to announce its earnings on February 4, 2025. In that report, analysts expect PepsiCo to post earnings of $1.95 per share. This would mark year-over-year growth of 9.55%. Meanwhile, the Zacks Consensus Estimate for revenue is projecting net sales of $28.08 billion, up 0.82% from the year-ago period.For the full year, the Zacks Consensus Estimates project earnings of $8.15 per share and a revenue of $92.13 billion, demonstrating changes of +6.96% and +0.72%, respectively, from the preceding year.Any recent changes to analyst estimates for PepsiCo should also be noted by investors. These revisions help to show the ever-changing nature of near-term business trends. Therefore, positive revisions in estimates convey analysts' confidence in the company's business performance and profit potential.Our research shows that these estimate changes are directly correlated with near-term stock prices. To capitalize on this, we've crafted the Zacks Rank, a unique model that incorporates these estimate changes and offers a practical 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 last 30 days, the Zacks Consensus EPS estimate has moved 0.02% lower. As of now, PepsiCo holds a Zacks Rank of #4 (Sell).Investors should also note PepsiCo's current valuation metrics, including its Forward P/E ratio of 18.56. This signifies a premium in comparison to the average Forward P/E of 18.24 for its industry.Also, we should mention that PEP has a PEG ratio of 2.87. 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. PEP's industry had an average PEG ratio of 2.62 as of yesterday's close.The Beverages - Soft drinks industry is part of the Consumer Staples sector. With its current Zacks Industry Rank of 167, this industry ranks in the bottom 34% of all industries, numbering over 250.The strength of our individual industry groups is measured by the Zacks Industry Rank, which is calculated based on the average Zacks Rank of the individual stocks within these groups. 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.5 Stocks Set to DoubleEach was handpicked by a Zacks expert as the #1 favorite stock to gain +100% or more in 2024. While not all picks can be winners, previous recommendations have soared +143.0%, +175.9%, +498.3% and +673.0%.Most of the stocks in this report are flying under Wall Street radar, which provides a great opportunity to get in on the ground floor.Today, See These 5 Potential Home Runs >>Want the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days. Click to get this free report PepsiCo, Inc. (PEP): Free Stock Analysis ReportTo read this article on Zacks.com click here.Zacks Investment ResearchWeiter zum vollständigen Artikel bei Zacks Weiter zum vollständigen Artikel bei Zacks