Coca-Cola FEMSA (KOF) Gains But Lags Market: What You Should Know
Coca-Cola FEMSA (KOF) closed at $83.31 in the latest trading session, marking a +0.02% move from the prior day. This move lagged the S&P 500's daily gain of 1.23%. Meanwhile, the Dow gained 0.84%, and the Nasdaq, a tech-heavy index, lost 2.24%.
Coming into today, shares of the bottling company had lost 0.19% in the past month. In that same time, the Consumer Staples sector gained 1.32%, while the S&P 500 gained 4.67%.
Coca-Cola FEMSA will be looking to display strength as it nears 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 revisions help to show the ever-changing nature of near-term business trends. As such, positive estimate revisions reflect analyst optimism about the company's business and profitability.
Our research shows that these estimate changes are directly correlated with near-term stock prices. 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 ranges from #1 (Strong Buy) to #5 (Strong Sell). It has a remarkable, outside-audited track record of success, with #1 stocks delivering an average annual return of +25% since 1988. Over the past month, the Zacks Consensus EPS estimate remained stagnant. Coca-Cola FEMSA is currently sporting a Zacks Rank of #2 (Buy).
Valuation is also important, so investors should note that Coca-Cola FEMSA has a Forward P/E ratio of 16.13 right now. Its industry sports an average Forward P/E of 23.18, so we one might conclude that Coca-Cola FEMSA is trading at a discount comparatively.
It is also worth noting that KOF currently has a PEG ratio of 1.2. This metric is used similarly to the famous P/E ratio, but the PEG ratio also takes into account the stock's expected earnings growth rate. KOF's industry had an average PEG ratio of 2.46 as of yesterday's close.
The Beverages - Soft drinks industry is part of the Consumer Staples sector. This group has a Zacks Industry Rank of 36, putting it in the top 15% 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.
You can find more information on all of these metrics, and much more, on Zacks.com.
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Coca Cola Femsa S.A.B. de C.V. (KOF) : Free Stock Analysis Report
