PepsiCo (PEP) Ascends While Market Falls: Some Facts to Note

In the latest close session, PepsiCo (PEP) was up +1.08% at $150.65. The stock's performance was ahead of the S&P 500's daily loss of 1.07%. On the other hand, the Dow registered a loss of 0.51%, and the technology-centric Nasdaq decreased by 1.69%. Shares of the food and beverage company witnessed a gain of 2.77% over the previous month, beating the performance of the Consumer Staples sector with its loss of 0.24%, and the S&P 500's gain of 0.94%.The upcoming earnings release of PepsiCo will be of great interest to investors. The company is forecasted to report an EPS of $2.24, showcasing a 14.29% upward movement from the corresponding quarter of the prior year. At the same time, our most recent consensus estimate is projecting a revenue of $28.84 billion, reflecting a 3.79% rise from the equivalent quarter last year. For the full year, the Zacks Consensus Estimates are projecting earnings of $8.11 per share and revenue of $93.54 billion, which would represent changes of -0.61% and +1.84%, respectively, from the prior year. Additionally, investors should keep an eye on any recent revisions to analyst forecasts for PepsiCo. These revisions help to show the ever-changing nature of near-term business trends. As such, positive estimate revisions reflect analyst optimism about the business and profitability. Empirical research indicates that these revisions in estimates have a direct correlation with impending 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. The Zacks Rank system, running from #1 (Strong Buy) to #5 (Strong Sell), holds an admirable track record of superior performance, independently audited, with #1 stocks contributing an average annual return of +25% since 1988. Within the past 30 days, our consensus EPS projection has moved 0.04% higher. Right now, PepsiCo possesses a Zacks Rank of #3 (Hold). Digging into valuation, PepsiCo currently has a Forward P/E ratio of 18.38. Its industry sports an average Forward P/E of 18.35, so one might conclude that PepsiCo is trading at a premium comparatively. One should further note that PEP currently holds a PEG ratio of 5.15. Comparable to the widely accepted P/E ratio, the PEG ratio also accounts for the company's projected earnings growth. The Beverages - Soft drinks industry had an average PEG ratio of 2.18 as trading concluded yesterday. The Beverages - Soft drinks industry is part of the Consumer Staples sector. This industry currently has a Zacks Industry Rank of 161, which puts it in the bottom 35% of all 250+ industries. The Zacks Industry Rank assesses the vigor of our specific industry groups by computing the average Zacks Rank of the individual stocks incorporated in the groups. Our research shows that the top 50% rated industries outperform the bottom half by a factor of 2 to 1. You can find more information on all of these metrics, and much more, on Zacks.com. Zacks' Research Chief Picks Stock Most Likely to "At Least Double"Our experts have revealed their Top 5 recommendations with money-doubling potential – and Director of Research Sheraz Mian believes one is superior to the others. Of course, all our picks aren’t winners but this one could far surpass earlier recommendations like Hims & Hers Health, which shot up +209%.See Our Top Stock to Double (Plus 4 Runners Up) >>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 ReportThis article originally published on Zacks Investment Research (zacks.com).Zacks Investment ResearchWeiter zum vollständigen Artikel bei Zacks Weiter zum vollständigen Artikel bei Zacks