PepsiCo (PEP) Stock Slides as Market Rises: Facts to Know Before You Trade

PepsiCo (PEP) closed at $156.77 in the latest trading session, marking a -1.92% move from the prior day. The stock trailed the S&P 500, which registered a daily gain of 0.82%. Meanwhile, the Dow experienced a drop of 0.22%, and the technology-dominated Nasdaq saw an increase of 1.77%.Coming into today, shares of the food and beverage company had lost 2.74% in the past month. In that same time, the Consumer Staples sector gained 0.86%, while the S&P 500 gained 0.8%.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. The company is predicted to post an EPS of $1.95, indicating a 9.55% growth compared to the equivalent quarter last year. Meanwhile, the Zacks Consensus Estimate for revenue is projecting net sales of $28.12 billion, up 0.97% from the year-ago period.For the annual period, the Zacks Consensus Estimates anticipate earnings of $8.15 per share and a revenue of $92.19 billion, signifying shifts of +6.96% and +0.79%, respectively, from the last year.Any recent changes to analyst estimates for PepsiCo should also be noted by investors. 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.Our research suggests that these changes in estimates have a direct relationship with upcoming stock price performance. To take advantage of this, we've established the Zacks Rank, an exclusive model that considers these estimated changes and delivers an operational 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. Within the past 30 days, our consensus EPS projection remained stagnant. Right now, PepsiCo possesses a Zacks Rank of #4 (Sell).In terms of valuation, PepsiCo is currently trading at a Forward P/E ratio of 19.61. This valuation marks a premium compared to its industry's average Forward P/E of 19.04.We can also see that PEP currently has a PEG ratio of 2.98. 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 2.65 as of yesterday's close.The Beverages - Soft drinks industry is part of the Consumer Staples sector. Currently, this industry holds a Zacks Industry Rank of 148, positioning it in the bottom 42% 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.To follow PEP in the coming trading sessions, be sure to utilize Zacks.com.Only $1 to See All Zacks' Buys and SellsWe're not kidding.Several years ago, we shocked our members by offering them 30-day access to all our picks for the total sum of only $1. No obligation to spend another cent.Thousands have taken advantage of this opportunity. Thousands did not - they thought there must be a catch. Yes, we do have a reason. We want you to get acquainted with our portfolio services like Surprise Trader, Stocks Under $10, Technology Innovators,and more, that closed 228 positions with double- and triple-digit gains in 2023 alone.See Stocks Now >>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