PepsiCo (PEP) Stock Declines Despite Market Uptick: Key Considerations for Investors

 PepsiCo (PEP) closed the most recent trading day at $165.78, marking a -0.83% decline from the previous session. This decrease trailed the S&P 500's daily gain of 1.23%. Meanwhile, the Dow rose by 1.06%, and the tech-heavy Nasdaq increased by 1.7%.

Over the last month, shares of the food and beverage company have seen a modest uptick of 0.12%, falling behind the Consumer Staples sector's 4% gain and the S&P 500's 0.94% increase.

Investors are eagerly awaiting PepsiCo's upcoming earnings report, scheduled for release on February 9, 2024. Analysts anticipate an EPS of $1.72, indicating a 2.99% growth compared to the same quarter last year. Concurrently, the latest consensus estimate predicts revenue of $28.26 billion, up 0.95% from the prior-year quarter.

Recent changes in analyst estimates for PepsiCo should be on investors' radar, as these revisions often reflect the latest short-term business trends. Positive changes in estimates suggest an optimistic outlook on the company's business health and profitability.

Research indicates a direct correlation between estimate changes and near-term stock prices. Investors can leverage the Zacks Rank, a model that considers estimate changes and offers a simple, actionable rating system. The Zacks Rank ranges from #1 (Strong Buy) to #5 (Strong Sell) and boasts a strong track record, with #1 stocks delivering an average annual return of +25% since 1988. PepsiCo currently holds a Zacks Rank of #2 (Buy).

Consider PepsiCo's current valuation metrics, including its Forward P/E ratio of 20.6. This reflects a premium compared to the industry's average Forward P/E of 18.64.

Furthermore, PepsiCo has a PEG ratio of 2.5. Similar to the widely used P/E ratio, the PEG ratio incorporates the company's anticipated earnings growth rate. As of yesterday's close, the Beverages - Soft drinks industry, to which PEP belongs, had an average PEG ratio of 2.19.

The Beverages - Soft drinks industry is part of the Consumer Staples sector, holding a Zacks Industry Rank of 30, placing it in the top 12% of all 250+ industries.

Track these stock-moving metrics and more on Zacks.com in the upcoming trading sessions.

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