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

 

PepsiCo (PEP) closed at $156.39 in the latest trading session, marking a +0.25% move from the prior day. This move outpaced the S&P 500's daily loss of 0.14%.

Heading into today, shares of the food and beverage company had lost 0.2% over the past month, trading in line with the Consumer Staples sector and lagging the S&P 500's gain of 3.13% in that time.

PEP will be looking to display strength as it nears its next earnings release, which is expected to be October 5, 2021. The company is expected to report EPS of $1.72, up 3.61% from the prior-year quarter. Our most recent consensus estimate is calling for quarterly revenue of $19.37 billion, up 7.1% from the year-ago period.

PEP's full-year Zacks Consensus Estimates are calling for earnings of $6.24 per share and revenue of $77.27 billion. These results would represent year-over-year changes of +13.04% and +9.8%, respectively.

It is also important to note the recent changes to analyst estimates for PEP. These revisions typically reflect the latest short-term business trends, which can change frequently. As such, positive estimate revisions reflect analyst optimism about the company's business and profitability.

Based on our research, we believe these estimate revisions are directly related to near-team stock moves. 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.

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 has moved 0.01% higher. PEP is currently sporting a Zacks Rank of #3 (Hold).

Digging into valuation, PEP currently has a Forward P/E ratio of 25.01. For comparison, its industry has an average Forward P/E of 24, which means PEP is trading at a premium to the group.

Also, we should mention that PEP has a PEG ratio of 2.97. The PEG ratio is similar to the widely-used P/E ratio, but this metric also takes the company's expected earnings growth rate into account. PEP's industry had an average PEG ratio of 2.51 as of yesterday's close.

The Beverages - Soft drinks industry is part of the Consumer Staples sector. This industry currently has a Zacks Industry Rank of 119, which puts it in the top 47% of all 250+ industries.

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.

To follow PEP in the coming trading sessions, be sure to utilize Zacks.com.


Bitcoin, Like the Internet Itself, Could Change Everything

Blockchain and cryptocurrency has sparked one of the most exciting discussion topics of a generation. Some call it the “Internet of Money” and predict it could change the way money works forever. If true, it could do to banks what Netflix did to Blockbuster and Amazon did to Sears. Experts agree we’re still in the early stages of this technology, and as it grows, it will create several investing opportunities.

Zacks’ has just revealed 3 companies that can help investors capitalize on the explosive profit potential of Bitcoin and the other cryptocurrencies with significantly less volatility than buying them directly. 

See 3 crypto-related stocks now >>

Want the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days. Click to get this free report
 
PepsiCo, Inc. (PEP): Free Stock Analysis Report
 
To read this article on Zacks.com click here.

Comments

Post a Comment

Popular posts from this blog

5 Ways Your Online Calendar Can Smooth Daylight Saving Transitions

Image
On November 7, 2020, daylight saving time will come to an end. Clocks will be rolled back, Calendars shuffled, and Americans confused. PauseUnmute Fullscreen VDO.AI Calendar - Calendar This annual tradition has baffled many Americans who question the system and its purpose. Regardless, everyone needs to make adjustments to keep up with the time change. To understand daylight saving time, you need to brush up on a little bit of history. Here’s why the time change was first introduced and why it’s still in place today: A Brief History of daylight saving The first suggestion for daylight saving came from Benjamin Franklin. He penned an anonymous essay to The Journal of Paris, explaining that people could save money on candles by getting up earlier to rely on natural sunlight. While satirical in its writing, the idea stuck around. Daylight saving time was first implemented during World War I when Germany used it to conserve fuel in 1916. The rest of Europe quickly copied Germany’s schedule
Read more

5 Ways Hybrid Smart Contracts Are Changing the Blockchain Industry

  For years, the blockchain industry has been defined by the excitement around smart contracts, or tamper-proof digital agreements that automatically execute when a certain condition is met. Typically associated with blockchains like Ethereum, smart contracts allow developers to build decentralized applications or “dApps” that recreate all sorts of products without the need for a rent-seeking middleman. However, over the last year, smart contracts have begun to evolve. While developers are still building smart contracts on top of blockchains like Ethereum, they’ve also begun to combine them with an entirely new piece of technology:  oracles . Oracles are entities that enable blockchains to interact with data and systems from the traditional world.  As a result, “ hybrid smart contracts ”, or smart contracts that combine on-chain code with off-chain oracles, have taken the world by storm due to the enhanced functionality they enable for dApps. Today, hybrid smart contracts power several
Read more

4 Top-Performing Electric Vehicle Stocks in October

Image
  With countries worldwide setting goals to phase out fossil fuel-powered vehicles, the electric vehicle industry is expected to grow significantly over the long term despite the current semiconductor shortage. So, EV stocks Tesla (TSLA), Lucid Group (LCID), Xpeng (XPEV), and Li Auto (LI) could be good additions to one’s watchlist now because they generated significant returns last month. Read on. shutterstock.com - StockNews Increasing climate change concerns and supportive government policies to address those concerns are expected to drive the electric vehicle (EV) industry’s growth. According to a Deloitte report, global EV vehicle sales are expected to grow more than 12-fold from 2.5 million vehicles in 2020 to 31.10 million by 2030, and account for nearly one third of new vehicle sales. The ongoing semiconductor chip shortage continues to impact EV production. Nevertheless, falling EV battery costs and increased demand for EVs have heightened investors’ interest in the industry. T
Read more