PepsiCo (PEP – Free Report) closed at $151.39 in the latest trading session, marking a +1.52% move from the prior day. The stock outpaced the S&P 500’s daily loss of 4.84%. Elsewhere, the Dow saw a downswing of 3.98%, while the tech-heavy Nasdaq depreciated by 5.97%.
The food and beverage company’s stock has dropped by 3.09% in the past month, falling short of the Consumer Staples sector’s gain of 5.4% and outpacing the S&P 500’s loss of 4.7%.
The upcoming earnings release of PepsiCo will be of great interest to investors. The company’s earnings report is expected on April 24, 2025. In that report, analysts expect PepsiCo to post earnings of $1.51 per share. This would mark a year-over-year decline of 6.21%. Simultaneously, our latest consensus estimate expects the revenue to be $17.78 billion, showing a 2.59% drop compared to the year-ago quarter.
In terms of the entire fiscal year, the Zacks Consensus Estimates predict earnings of $8.27 per share and a revenue of $91.74 billion, indicating changes of +1.35% and -0.12%, respectively, from the former year.
Additionally, investors should keep an eye on any recent revisions to analyst forecasts for PepsiCo. These revisions help to show the ever-changing nature of near-term business trends. With this in mind, we can consider positive estimate revisions a sign of optimism about the company’s business outlook.
Our research shows that these estimate changes are directly correlated with near-term stock prices. To utilize this, we have created the Zacks Rank, a proprietary model that integrates these estimate changes and provides a functional rating system.
The Zacks Rank system, ranging from #1 (Strong Buy) to #5 (Strong Sell), possesses a remarkable history of outdoing, externally audited, with #1 stocks returning an average annual gain of +25% since 1988. Over the past month, there’s been a 0.3% fall in the Zacks Consensus EPS estimate. PepsiCo presently features a Zacks Rank of #4 (Sell).
Digging into valuation, PepsiCo currently has a Forward P/E ratio of 18.03. This indicates a discount in contrast to its industry’s Forward P/E of 19.24.
We can also see that PEP currently has a PEG ratio of 3.25. 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. The Beverages – Soft drinks industry had an average PEG ratio of 2.7 as trading concluded yesterday.
The Beverages – Soft drinks industry is part of the Consumer Staples sector. With its current Zacks Industry Rank of 63, this industry ranks in the top 26% of all industries, numbering over 250.
The Zacks Industry Rank evaluates the power of our distinct industry groups by determining the average Zacks Rank of the individual stocks forming the groups. Our research shows that the top 50% rated industries outperform the bottom half by a factor of 2 to 1.
To follow PEP in the coming trading sessions, be sure to utilize Zacks.com.
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