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PepsiCo (PEP) closed the most recent trading day at $131.98, moving +0.37% from the previous trading session. The stock's performance was behind the S&P 500's daily gain of 0.7%. Elsewhere, the Dow saw an upswing of 0.78%, while the tech-heavy Nasdaq appreciated by 0.52%.

Shares of the food and beverage company witnessed a loss of 7.94% over the previous month, trailing the performance of the Consumer Staples sector with its loss of 0.21% and the S&P 500's gain of 9.81%.

Market participants will be closely following the financial results of PepsiCo in its upcoming release. The company's earnings per share (EPS) are projected to be $2.04, reflecting a 10.53% decrease from the same quarter last year. Meanwhile, our latest consensus estimate is calling for revenue of $22.37 billion, down 0.6% from the prior-year quarter.

For the entire fiscal year, the Zacks Consensus Estimates are projecting earnings of $7.89 per share and a revenue of $92.2 billion, representing changes of -3.31% and +0.38%, respectively, from the prior year.

Investors should also take note of any recent adjustments to analyst estimates for PepsiCo. Such recent modifications usually signify the changing landscape of near-term business trends. Therefore, positive revisions in estimates convey analysts' confidence in the company's business performance and profit potential.

Our research suggests that these changes in estimates have a direct relationship with upcoming stock price performance. 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, running from #1 (Strong Buy) to #5 (Strong Sell), holds an admirable track record of superior performance, independently audited, with #1 stocks contributing an average annual return of +25% since 1988. Within the past 30 days, our consensus EPS projection has moved 4.64% lower. Currently, PepsiCo is carrying a Zacks Rank of #4 (Sell).

Looking at its valuation, PepsiCo is holding a Forward P/E ratio of 16.67. This signifies a discount in comparison to the average Forward P/E of 19.08 for its industry.

Investors should also note that PEP has a PEG ratio of 3.77 right now. Comparable to the widely accepted P/E ratio, the PEG ratio also accounts for the company's projected earnings growth. By the end of yesterday's trading, the Beverages - Soft drinks industry had an average PEG ratio of 2.61.

The Beverages - Soft drinks industry is part of the Consumer Staples sector. This industry currently has a Zacks Industry Rank of 28, which puts it in the top 12% of all 250+ industries.

The Zacks Industry Rank is ordered from best to worst in terms of the average Zacks Rank of the individual companies within each of these sectors. Our research shows that the top 50% rated industries outperform the bottom half by a factor of 2 to 1.

Keep in mind to rely on Zacks.com to watch all these stock-impacting metrics, and more, in the succeeding trading sessions.

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This article originally published on Zacks Investment Research (zacks.com).

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