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Coca-Cola (KO) Dips More Than Broader Markets: What You Should Know

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In the latest trading session, Coca-Cola (KO) closed at $61.65, marking a -1.36% move from the previous day. This change lagged the S&P 500's 0.84% loss on the day. Elsewhere, the Dow lost 0.69%, while the tech-heavy Nasdaq lost 0.05%.

Heading into today, shares of the world's largest beverage maker had gained 5.17% over the past month, outpacing the Consumer Staples sector's gain of 3.72% and the S&P 500's gain of 2.02% in that time.

Wall Street will be looking for positivity from Coca-Cola as it approaches its next earnings report date. This is expected to be July 26, 2022. In that report, analysts expect Coca-Cola to post earnings of $0.67 per share. This would mark a year-over-year decline of 1.47%. Meanwhile, the Zacks Consensus Estimate for revenue is projecting net sales of $10.79 billion, up 6.57% from the year-ago period.

For the full year, our Zacks Consensus Estimates are projecting earnings of $2.46 per share and revenue of $42.03 billion, which would represent changes of +6.03% and +8.73%, respectively, from the prior year.

Any recent changes to analyst estimates for Coca-Cola should also be noted by investors. Recent revisions tend to reflect the latest near-term business trends. As a result, we can interpret positive estimate revisions as a good sign for the company's business outlook.

Based on our research, we believe these estimate revisions are directly related to near-team stock moves. 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.

Ranging from #1 (Strong Buy) to #5 (Strong Sell), the Zacks Rank system has a proven, outside-audited track record of outperformance, with #1 stocks returning an average of +25% annually since 1988. Within the past 30 days, our consensus EPS projection has moved 0.25% lower. Coca-Cola currently has a Zacks Rank of #3 (Hold).

Digging into valuation, Coca-Cola currently has a Forward P/E ratio of 25.41. For comparison, its industry has an average Forward P/E of 21.66, which means Coca-Cola is trading at a premium to the group.

We can also see that KO currently has a PEG ratio of 4. 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. Beverages - Soft drinks stocks are, on average, holding a PEG ratio of 2.7 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 147, putting it in the bottom 42% 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.

You can find more information on all of these metrics, and much more, on Zacks.com.


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