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In the latest trading session, PepsiCo (PEP) closed at $166.66, marking a -0.04% move from the previous day. This move was narrower than the S&P 500's daily loss of 0.88%. Elsewhere, the Dow lost 0.82%, while the tech-heavy Nasdaq added 0.08%.
Prior to today's trading, shares of the food and beverage company had gained 0.14% over the past month. This has outpaced the Consumer Staples sector's loss of 2.9% and the S&P 500's loss of 8.06% in that time.
Wall Street will be looking for positivity from PepsiCo as it approaches its next earnings report date. This is expected to be July 12, 2022. In that report, analysts expect PepsiCo to post earnings of $1.72 per share. This would mark no growth from the prior-year quarter. Meanwhile, the Zacks Consensus Estimate for revenue is projecting net sales of $19.77 billion, up 2.85% from the year-ago period.
Looking at the full year, our Zacks Consensus Estimates suggest analysts are expecting earnings of $6.64 per share and revenue of $83.27 billion. These totals would mark changes of +6.07% and +4.77%, respectively, from last year.
Investors might also notice recent changes to analyst estimates for PepsiCo. Recent revisions tend to reflect the latest near-term business trends. As a result, we can interpret positive estimate revisions as a good sign for the company's business outlook.
Our research shows that these estimate changes are directly correlated with near-term stock prices. 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 ranges from #1 (Strong Buy) to #5 (Strong Sell). It has a remarkable, outside-audited track record of success, with #1 stocks delivering an average annual return of +25% since 1988. The Zacks Consensus EPS estimate remained stagnant within the past month. PepsiCo is currently sporting a Zacks Rank of #3 (Hold).
In terms of valuation, PepsiCo is currently trading at a Forward P/E ratio of 25.1. This represents a premium compared to its industry's average Forward P/E of 21.09.
We can also see that PEP currently has a PEG ratio of 3.31. 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 2.75 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 163, which puts it in the bottom 36% of all 250+ industries.
The Zacks Industry Rank gauges the strength of our 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.
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