Yahoo Finance PepsiCo (PEP) Stock Moves -1.65%: What You Should Know
PepsiCo (PEP) closed the most recent trading day at $118.12, moving -1.65% from the previous trading session. This move was narrower than the S&P 500's daily loss of 4.41%. Elsewhere, the Dow lost 4.44%, while the tech-heavy Nasdaq lost 4.41%.
Prior to today's trading, shares of the food and beverage company had lost 11.42% over the past month. This has lagged the Consumer Staples sector's loss of 10.6% and was narrower than the S&P 500's loss of 12.16% in that time.
PEP will be looking to display strength as it nears its next earnings release, which is expected to be April 28, 2020. On that day, PEP is projected to report earnings of $1.02 per share, which would represent year-over-year growth of 5.15%. Meanwhile, the Zacks Consensus Estimate for revenue is projecting net sales of $13.24 billion, up 2.73% from the year-ago period.
Looking at the full year, our Zacks Consensus Estimates suggest analysts are expecting earnings of $5.77 per share and revenue of $69.73 billion. These totals would mark changes of +4.34% and +3.82%, respectively, from last year.
Investors might also notice recent changes to analyst estimates for PEP. These recent revisions tend to reflect the evolving nature of short-term business trends. As such, positive estimate revisions reflect analyst optimism about the company's business and profitability.
Our research shows that these estimate changes are directly correlated with near-term stock prices. Investors can capitalize on this by using the Zacks Rank. This model considers these estimate changes and provides a simple, actionable 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. The Zacks Consensus EPS estimate has moved 2.01% lower within the past month. PEP is currently a Zacks Rank #3 (Hold).
Investors should also note PEP's current valuation metrics, including its Forward P/E ratio of 20.82. For comparison, its industry has an average Forward P/E of 16.02, which means PEP is trading at a premium to the group.
Meanwhile, PEP's PEG ratio is currently 3.21. This metric is used similarly to the famous P/E ratio, but the PEG ratio also takes into account the stock's expected earnings growth rate. The Beverages - Soft drinks was holding an average PEG ratio of 3.03 at yesterday's closing price.
The Beverages - Soft drinks industry is part of the Consumer Staples sector. This industry currently has a Zacks Industry Rank of 100, which puts it in the top 40% 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.
Be sure to follow all of these stock-moving metrics, and many more, on Zacks.com.
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