PepsiCo (PEP) closed the last trading session at $ 149.39, a move of -0.31% from the previous day. That change fell short of the S&P 500’s daily gain of 1.13%.
Today, the food and beverage company’s shares were up 1.53% over the past month. At the same time, the consumer staples sector lost 3.36% while the S&P 500 gained 2.39%.
Investors will be hoping for strength from PEP as it nears its next earnings release, which is expected on July 13, 2021. In this report, analysts expect PEP to post earnings of $ 1.52 per share. This would mean a growth of 15.15% compared to the previous year. Meanwhile, the Zacks Consensus Estimate is forecasting net sales of $ 18.02 billion, up 13.03% over the same period last year.
PEP’s Zacks Consensus Estimates for the full year forecast earnings of $ 6.05 per share and revenue of $ 75.66 billion. These results would represent changes of + 9.6% and + 7.52% respectively compared to the previous year.
Any recent changes in analyst estimates for PEP should also be considered by investors. Most recent revisions usually reflect the latest short-term business trends. With this in mind, we can view positive valuation revisions as a sign of optimism about the company’s business outlook.
Research has shown that these estimate revisions correlate directly with short-term stock price dynamics. To take advantage of this, we developed the Zacks Rank, a proprietary model that takes these estimation changes into account and provides an actionable rating system.
The Zacks Rank system, which ranges from # 1 (Strong Buy) to # 5 (Strong Sell), has had impressive externally audited outperformance, with # 1 stocks seeing an average annual return of + 25% since 1988 in the past Monthly, Zack’s Consensus EPS estimate rose 0.07%. PEP is currently a Zacks Rank # 3 (Hold).
Valuation is also important, so investors should note that PEP currently has a forward P / E of 24.75. This represents a premium compared to the industry’s average forward P / E of 23.01.
Investors should also note that PEP currently has a PEG ratio of 3.1. The PEG ratio is similar to the widely used P / E ratio, but this metric also takes into account the company’s expected earnings growth rate. Beverages – Soft drink stocks averaged 2.48 PEG based on yesterday’s closing prices.
The beverage and soft drinks industry belongs to the consumer staples sector. This group has a Zacks industry ranking of 198, making it one of the bottom 23% of all over 250 industries.
Zacks Industry Rank measures the strength of our individual industry groups by measuring the average Zacks rank of individual stocks within the groups. Our research shows that the top-rated 50% of industries outperform the bottom half by a factor of 2 to 1.
For more information on all of these metrics and more, visit Zacks.com.
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