Coca-Cola FEMSA (KOF) Gains As Market Dips: What You Should Know
Coca-Cola FEMSA (KOF) closed the most recent trading day at $81.63, moving +0.12% from the previous trading session. The stock outpaced the S&P 500's daily loss of 0.29%. Meanwhile, the Dow lost 0.55%, and the Nasdaq, a tech-heavy index, added 1.24%.
Heading into today, shares of the bottling company had lost 7.26% over the past month, lagging the Consumer Staples sector's gain of 3.48% and the S&P 500's gain of 3.1% in that time.
Investors will be hoping for strength from Coca-Cola FEMSA as it approaches its next earnings release. The company is expected to report EPS of $1.33, up 20.91% from the prior-year quarter. Meanwhile, the Zacks Consensus Estimate for revenue is projecting net sales of $3.45 billion, up 20.4% from the year-ago period.
For the full year, our Zacks Consensus Estimates are projecting earnings of $5.17 per share and revenue of $13.49 billion, which would represent changes of +14.63% and +19.47%, respectively, from the prior year.
Investors should also note any recent changes to analyst estimates for Coca-Cola FEMSA. Recent revisions tend to reflect the latest near-term business trends. With this in mind, we can consider positive estimate revisions a sign of optimism about the company's business outlook.
Our research shows that these estimate changes are directly correlated with near-term stock prices. To benefit from this, we have developed the Zacks Rank, a proprietary model which takes these estimate changes into account and provides an actionable rating system.
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 remained stagnant. Coca-Cola FEMSA is currently a Zacks Rank #2 (Buy).
Digging into valuation, Coca-Cola FEMSA currently has a Forward P/E ratio of 15.78. Its industry sports an average Forward P/E of 23.24, so we one might conclude that Coca-Cola FEMSA is trading at a discount comparatively.
Investors should also note that KOF has a PEG ratio of 1.17 right now. 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. The Beverages - Soft drinks industry currently had an average PEG ratio of 2.54 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 29, putting it in the top 12% of all 250+ industries.
The Zacks Industry Rank includes is listed in order 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.
To follow KOF in the coming trading sessions, be sure to utilize Zacks.com.
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Coca Cola Femsa S.A.B. de C.V. (KOF) : Free Stock Analysis Report
