PepsiCo (PEP) Sees Positive Movement Amid Market Decline

On the latest trading day, PepsiCo (PEP) closed at $158.90, marking an increase of +1.36% from the previous session. This uptick stands out against a broader market trend where the S&P 500 experienced a decline of 0.54%. In other market movements, the Dow Jones also fell by 0.53%, and the technology-heavy Nasdaq saw a decrease of 0.66%.

Over the past month, PepsiCo's shares have faced a decline of 4.84%. This performance falls short compared to the Consumer Staples sector, which increased by 0.44%, and the S&P 500's overall rise of 1.5%.

The investment community is eagerly awaiting the upcoming earnings report from PepsiCo, expected to be released on February 4, 2025. Analysts are projecting earnings of $1.95 per share, reflecting an annual growth rate of 9.55%. Additionally, revenue estimates stand at $28.12 billion, which is a 0.97% increase compared to the same period last year.

When looking at the full year, the Zacks Consensus Estimates forecast earnings of $8.15 per share alongside projected revenue of $92.19 billion. These figures represent growth of +6.96% for earnings and +0.79% for revenue from the previous year.

Investors are encouraged to pay attention to any recent updates to analyst forecasts for PepsiCo. Changes in these estimations often align with shifting short-term business conditions. A positive adjustment signals growing optimism among analysts regarding the company's profitability and overall business health.

Research indicates that these forecast changes are closely linked to short-term stock movements. Investors can take advantage of these trends by utilizing the Zacks Rank system. This model evaluates estimate revisions and presents a straightforward rating for stocks.

The Zacks Rank operates on a scale from #1 (Strong Buy) to #5 (Strong Sell). Historically, stocks rated as #1 have delivered an impressive average annual return of +25% since 1988. In the past month, the Zacks Consensus EPS estimate for PepsiCo has remained stable. Currently, its Zacks Rank stands at #4 (Sell).

In terms of valuation metrics, PepsiCo's Forward P/E ratio is currently 19.23, which is slightly higher than the industry average of 18.95.

Moreover, PepsiCo has a PEG ratio of 2.92, a metric that takes into account expected growth rates along with the P/E ratio. In comparison, the average PEG ratio for the Beverages - Soft Drinks sector sits at 2.7 based on the latest closing figures.

The Beverages - Soft Drinks industry, part of the larger Consumer Staples sector, currently has a Zacks Industry Rank of 166, placing it in the lower 34% of over 250 industries evaluated.

The Zacks Industry Rank reflects the average Zacks Rank of the stocks within specific industry groups, indicating the performance potential between them. Historical data shows that industries in the top half generally outperform those in the bottom half by a rate of 2 to 1.

For ongoing updates on these influential stock indicators, investors should stay informed through reliable financial resources.

PepsiCo, Market, Earnings