PepsiCo (PEP) closed the latest trading day at $149.67, indicating a +0.69% change from the previous session's end. This move outpaced the S&P 500's daily loss of 0.33%. At the same time, the Dow lost 0.37%, and the tech-heavy Nasdaq lost 0.53%.
The the stock of food and beverage company has fallen by 1.89% in the past month, lagging the Consumer Staples sector's gain of 0.56% and overreaching the S&P 500's loss of 4.03%.
The investment community will be paying close attention to the earnings performance of PepsiCo in its upcoming release. The company is slated to reveal its earnings on April 24, 2025. The company is forecasted to report an EPS of $1.52, showcasing a 5.59% downward movement from the corresponding quarter of the prior year. Meanwhile, the Zacks Consensus Estimate for revenue is projecting net sales of $17.8 billion, down 2.45% from the year-ago period.
For the full year, the Zacks Consensus Estimates project earnings of $8.29 per share and a revenue of $91.79 billion, demonstrating changes of +1.59% and -0.07%, respectively, from the preceding year.
Furthermore, it would be beneficial for investors to monitor any recent shifts in analyst projections for PepsiCo. These recent revisions tend to reflect the evolving nature of short-term business trends. Consequently, upward revisions in estimates express analysts' positivity towards the company's business operations and its ability to generate profits.
Our research demonstrates that these adjustments in estimates directly associate with imminent stock price performance. We developed the Zacks Rank to capitalize on this phenomenon. Our system takes these estimate changes into account and delivers a clear, actionable rating model.
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. Over the past month, the Zacks Consensus EPS estimate has moved 0.08% lower. Currently, PepsiCo is carrying a Zacks Rank of #4 (Sell).
Looking at its valuation, PepsiCo is holding a Forward P/E ratio of 17.93. This valuation marks a discount compared to its industry's average Forward P/E of 18.73.
Investors should also note that PEP has a PEG ratio of 3.13 right now. 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 2.63 as of yesterday's close.
The Beverages - Soft drinks industry is part of the Consumer Staples sector. This industry currently has a Zacks Industry Rank of 78, which puts it in the top 32% 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.
Remember to apply Zacks.com to follow these and more stock-moving metrics during the upcoming trading sessions.
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This article originally published on Zacks Investment Research (zacks.com).
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