Analyst Valuation and EPS Growth for PepsiCo (NASDAQ:PEP)

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Earnings results for PepsiCo (NASDAQ:PEP)

Pepsico, Inc. is expected* to report earnings on 02/11/2021 before market open. The report will be for the fiscal Quarter ending Dec 2020. According to Zacks Investment Research, based on 7 analysts’ forecasts, the consensus EPS forecast for the quarter is $1.45. The reported EPS for the same quarter last year was $1.45.

Analyst Opinion on PepsiCo (NASDAQ:PEP)

16 Wall Street analysts have issued ratings and price targets for PepsiCo in the last 12 months. Their average twelve-month price target is $144.94, predicting that the stock has a possible upside of 5.26%. The high price target for PEP is $169.00 and the low price target for PEP is $130.00. There are currently 1 sell rating, 6 hold ratings, 7 buy ratings and 2 strong buy ratings for the stock, resulting in a consensus rating of “Buy.”

PepsiCo has received a consensus rating of Buy. The company’s average rating score is 2.63, and is based on 7 buy ratings, 6 hold ratings, and 1 sell rating. According to analysts’ consensus price target of $144.94, PepsiCo has a forecasted upside of 5.3% from its current price of $137.70. PepsiCo has only been the subject of 4 research reports in the past 90 days.

Dividend Strength: PepsiCo (NASDAQ:PEP)

PepsiCo pays a meaningful dividend of 2.93%, higher than the bottom 25% of all stocks that pay dividends. PepsiCo has been increasing its dividend for 49 years. The dividend payout ratio of PepsiCo is 73.96%. This payout ratio is at a healthy, sustainable level, below 75%. Based on earnings estimates, PepsiCo will have a dividend payout ratio of 67.72% next year. This indicates that PepsiCo will be able to sustain or increase its dividend.

Insiders buying/selling: PepsiCo (NASDAQ:PEP)

In the past three months, PepsiCo insiders have not sold or bought any company stock. Only 0.13% of the stock of PepsiCo is held by insiders. 69.94% of the stock of PepsiCo is held by institutions. High institutional ownership can be a signal of strong market trust in this company.

Earnings and Valuation of PepsiCo (NASDAQ:PEP

Earnings for PepsiCo are expected to grow by 9.62% in the coming year, from $5.51 to $6.04 per share. The P/E ratio of PepsiCo is 27.27, which means that it is trading at a more expensive P/E ratio than the market average P/E ratio of about 23.86. The P/E ratio of PepsiCo is 27.27, which means that it is trading at a less expensive P/E ratio than the Consumer Staples sector average P/E ratio of about 44.15. PepsiCo has a PEG Ratio of 3.63. PEG Ratios above 1 indicate that a company could be overvalued. PepsiCo has a P/B Ratio of 12.92. P/B Ratios above 3 indicate that a company could be overvalued with respect to its assets and liabilities.

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