PepsiCo (PEP) Gains As Market Dips: What You Should Know

In the latest trading session, PepsiCo (PEP) closed at $138.10, marking a +0.22% move from the previous day. This move outpaced the S&P 500's daily loss of 0.21%. Meanwhile, the Dow lost 0.29%, and the Nasdaq, a tech-heavy index, added 0.28%.

Prior to today's trading, shares of the food and beverage company had gained 3.07% over the past month. This has lagged the Consumer Staples sector's gain of 6.34% and the S&P 500's gain of 6.24% in that time.

Wall Street will be looking for positivity from PEP as it approaches its next earnings report date. In that report, analysts expect PEP to post earnings of $1.47 per share. This would mark a year-over-year decline of 5.77%. Our most recent consensus estimate is calling for quarterly revenue of $17.26 billion, up 0.41% from the year-ago period.

PEP's full-year Zacks Consensus Estimates are calling for earnings of $5.34 per share and revenue of $68.31 billion. These results would represent year-over-year changes of -3.44% and +1.72%, respectively.

Any recent changes to analyst estimates for PEP should also be noted by investors. These revisions typically reflect the latest short-term business trends, which can change frequently. As a result, we can interpret positive estimate revisions as a good sign for the company's business outlook.

Research indicates that these estimate revisions are directly correlated with near-term share price momentum. To benefit from this, we have developed the Zacks Rank, a proprietary model which takes these estimate changes into account and provides an 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. Over the past month, the Zacks Consensus EPS estimate has moved 0.68% higher. PEP is currently a Zacks Rank #3 (Hold).

Digging into valuation, PEP currently has a Forward P/E ratio of 25.79. For comparison, its industry has an average Forward P/E of 22.6, which means PEP is trading at a premium to the group.

Meanwhile, PEP's PEG ratio is currently 4.6. This popular metric is similar to the widely-known P/E ratio, with the difference being that the PEG ratio also takes into account the company's expected earnings growth rate. PEP's industry had an average PEG ratio of 4.6 as of yesterday's close.

The Beverages - Soft drinks industry is part of the Consumer Staples sector. This group has a Zacks Industry Rank of 120, putting it in the top 48% of all 250+ industries.

The Zacks Industry Rank includes is listed in order from best to worst in terms of the average Zacks Rank of the individual companies within each of these sectors. 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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