PepsiCo (PEP) Observes Gains Amid Market Decline

In the most recent trading session, PepsiCo (PEP) closed at $158.90, marking an increase of +1.36% from the previous trading day. This positive shift was notable as the broader market faced challenges, with the S&P 500 experiencing a loss of 0.54% on the same day. Additionally, the Dow fell by 0.53%, while the tech-focused Nasdaq saw a decline of 0.66%.

Despite the recent uptick, PepsiCo's stock has seen a decline of 4.84% over the past month. This performance trails behind the Consumer Staples sector's modest gain of 0.44% and the overall S&P 500's increase of 1.5%.

The investment community is preparing for PepsiCo's upcoming earnings report, which is scheduled for February 4, 2025. Analysts anticipate that the company will report earnings of $1.95 per share, reflecting a year-over-year growth of 9.55%. Furthermore, the consensus estimate for revenue stands at $28.12 billion, which represents a 0.97% increase compared to the same quarter last year.

Over the entire year, the Zacks Consensus Estimates predict earnings of $8.15 per share and total revenue of $92.19 billion, which indicate changes of +6.96% and +0.79%, respectively, from the previous year.

Investors should pay attention to any recent updates regarding analyst estimates for PepsiCo. Adjustments in these estimates may indicate evolving trends in the business environment. Positive modifications often suggest optimism from analysts regarding the company's profitability and future performance.

Research indicates that changes in earnings estimates are closely linked to short-term stock price movements. Investors may find it beneficial to use the Zacks Rank, which takes these estimate changes into account and provides an easy-to-understand rating system.

The Zacks Rank ranges from #1 (Strong Buy) to #5 (Strong Sell) and has a notable history of delivering strong performance, with #1 stocks generating an average annual return of +25% since 1988. Currently, PepsiCo holds a Zacks Rank of #4 (Sell).

In terms of valuation, PepsiCo is trading at a Forward P/E ratio of 19.23, which is above the industry average of 18.95.

Furthermore, the company has a PEG ratio of 2.92. This ratio is similar to the P/E ratio but accounts for expected earnings growth. The average PEG ratio for the Beverages - Soft drinks sector was 2.7 at the latest close. The Beverages - Soft drinks industry is classified within the Consumer Staples sector and currently holds a Zacks Industry Rank of 166, placing it in the lower 34% of over 250 industries.

The Zacks Industry Rank assesses the relative strength of various industry groups based on the average Zacks Rank of the companies within those groups. Historically, industries in the top 50% outperform those in the bottom half by a ratio of 2 to 1.

Investors are encouraged to keep an eye on these metrics related to PepsiCo as trading sessions progress.

PepsiCo, market, stocks