PepsiCo (PEP) Stock Falls Amid Market Uptick: What Investors Need to Know

PepsiCo (PEP) closed the most recent trading day at $142.27, moving -1.66% from the previous trading session. The stock's change was less than the S&P 500's daily gain of 0.32%. Elsewhere, the Dow saw an upswing of 0.3%, while the tech-heavy Nasdaq appreciated by 0.66%.

The stock of food and beverage company has risen by 3.49% in the past month, lagging the Consumer Staples sector's gain of 3.6% and overreaching the S&P 500's gain of 3.34%.

Analysts and investors alike will be keeping a close eye on the performance of PepsiCo in its upcoming earnings disclosure. The company is forecasted to report an EPS of $2.31, showcasing a 0.87% upward movement from the corresponding quarter of the prior year. Simultaneously, our latest consensus estimate expects the revenue to be $24.92 billion, showing a 4.1% escalation compared to the year-ago quarter.

For the full year, the Zacks Consensus Estimates project earnings of $8.57 per share and a revenue of $98.97 billion, demonstrating changes of +5.28% and +5.37%, respectively, from the preceding year.

Investors should also note any recent changes to analyst estimates for PepsiCo. These latest adjustments often mirror the shifting dynamics of short-term business patterns. Therefore, positive revisions in estimates convey analysts' confidence in the business performance and profit potential.

Based on our research, we believe these estimate revisions are directly related to near-term stock moves. 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 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. Within the past 30 days, our consensus EPS projection remained stagnant. 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 16.87. This expresses a discount compared to the average Forward P/E of 18.56 of its industry.

It's also important to note that PEP currently trades at a PEG ratio of 3.18. The PEG ratio bears resemblance to the frequently used P/E ratio, but this parameter also includes the company's expected earnings growth trajectory. As the market closed yesterday, the Beverages - Soft drinks industry was having an average PEG ratio of 1.68.

The Beverages - Soft drinks industry is part of the Consumer Staples sector. With its current Zacks Industry Rank of 103, this industry ranks in the top 42% of all industries, numbering over 250.

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.

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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