Coca-Cola FEMSA (KOF) Dips More Than Broader Markets: What You Should Know
Coca-Cola FEMSA (KOF) closed the most recent trading day at $86.82, moving -1.61% from the previous trading session. This move lagged the S&P 500's daily loss of 0.77%. At the same time, the Dow lost 0.65%, and the tech-heavy Nasdaq lost 2.23%.
Prior to today's trading, shares of the bottling company had gained 3.52% over the past month. This has outpaced the Consumer Staples sector's gain of 0.72% and lagged the S&P 500's gain of 4.66% in that time.
Investors will be hoping for strength from Coca-Cola FEMSA as it approaches its next earnings release. In that report, analysts expect Coca-Cola FEMSA to post earnings of $1.33 per share. This would mark year-over-year growth of 20.91%. Our most recent consensus estimate is calling for quarterly revenue of $3.45 billion, up 20.4% from the year-ago period.
KOF's full-year Zacks Consensus Estimates are calling for earnings of $5.17 per share and revenue of $13.49 billion. These results would represent year-over-year changes of +14.63% and +19.47%, respectively.
Any recent changes to analyst estimates for Coca-Cola FEMSA should also be noted by investors. These recent revisions tend to reflect the evolving nature of short-term business trends. 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. We developed the Zacks Rank to capitalize on this phenomenon. Our system takes these estimate changes into account and delivers a clear, actionable rating model.
The Zacks Rank system, which ranges from #1 (Strong Buy) to #5 (Strong Sell), has an impressive outside-audited track record of outperformance, with #1 stocks generating an average annual return of +25% since 1988. Within the past 30 days, our consensus EPS projection has moved 2.38% higher. Coca-Cola FEMSA is currently a Zacks Rank #1 (Strong Buy).
Digging into valuation, Coca-Cola FEMSA currently has a Forward P/E ratio of 17.08. Its industry sports an average Forward P/E of 23.94, so we one might conclude that Coca-Cola FEMSA is trading at a discount comparatively.
We can also see that KOF currently has a PEG ratio of 1.27. 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. Beverages - Soft drinks stocks are, on average, holding a PEG ratio of 2.55 based on yesterday's closing prices.
The Beverages - Soft drinks industry is part of the Consumer Staples sector. This group has a Zacks Industry Rank of 39, putting it in the top 16% 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.
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Coca Cola Femsa S.A.B. de C.V. (KOF) : Free Stock Analysis Report
