PepsiCo (PEP) ended the recent trading session at $129.57, demonstrating a -3.06% change from the preceding day's closing price. This change lagged the S&P 500's daily gain of 0.17%. Meanwhile, the Dow lost 0.18%, and the Nasdaq, a tech-heavy index, added 0.4%.
Prior to today's trading, shares of the food and beverage company had lost 5.93% lagged the Consumer Staples sector's gain of 0.4% and the S&P 500's loss of 1.29%.
The upcoming earnings release of PepsiCo will be of great interest to investors. The company's earnings report is expected on October 8, 2026. On that day, PepsiCo is projected to report earnings of $2.3 per share, which would represent year-over-year growth of 0.44%. Simultaneously, our latest consensus estimate expects the revenue to be $24.92 billion, showing a 4.1% escalation compared to the year-ago quarter.
For the annual period, the Zacks Consensus Estimates anticipate earnings of $8.57 per share and a revenue of $98.97 billion, signifying shifts of +5.28% and +5.37%, respectively, from the last year.
Investors should also pay attention to any latest changes in analyst estimates for PepsiCo. These revisions help to show the ever-changing nature of near-term business trends. Consequently, upward revisions in estimates express analysts' positivity towards the business operations and its ability to generate profits.
Research indicates that these estimate revisions are directly correlated with near-term share price momentum. Investors can capitalize on this by using the Zacks Rank. This model considers these estimate changes and provides a simple, actionable rating system.
The Zacks Rank system, spanning from #1 (Strong Buy) to #5 (Strong Sell), boasts an impressive track record of outperformance, audited externally, with #1 ranked stocks yielding an average annual return of +25% since 1988. Within the past 30 days, our consensus EPS projection remained stagnant. Currently, PepsiCo is carrying a Zacks Rank of #4 (Sell).
Looking at its valuation, PepsiCo is holding a Forward P/E ratio of 15.59. Its industry sports an average Forward P/E of 18.19, so one might conclude that PepsiCo is trading at a discount comparatively.
It's also important to note that PEP currently trades at a PEG ratio of 2.81. 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 average PEG ratio for the Beverages - Soft drinks industry stood at 1.64 at the close of the market yesterday.
The Beverages - Soft drinks industry is part of the Consumer Staples sector. With its current Zacks Industry Rank of 171, this industry ranks in the bottom 31% 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.
Don't forget to use Zacks.com to keep track of all these stock-moving metrics, and others, in the upcoming trading sessions.
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PepsiCo, Inc. (PEP): Free Stock Analysis Report
This article originally published on Zacks Investment Research (zacks.com).