Coca-Cola (KO) Dips More Than Broader Markets: What You Should Know
In the latest trading session, Coca-Cola (KO) closed at $54.12, marking a -0.81% move from the previous day. This change lagged the S&P 500's 0.11% loss on the day.
Heading into today, shares of the world's largest beverage maker had lost 0.42% over the past month, outpacing the Consumer Staples sector's loss of 0.91% and lagging the S&P 500's gain of 2.23% in that time.
KO will be looking to display strength as it nears its next earnings release. In that report, analysts expect KO to post earnings of $0.55 per share. This would mark year-over-year growth of 30.95%. Our most recent consensus estimate is calling for quarterly revenue of $9.4 billion, up 31.53% from the year-ago period.
For the full year, our Zacks Consensus Estimates are projecting earnings of $2.19 per share and revenue of $37.14 billion, which would represent changes of +12.31% and +12.51%, respectively, from the prior year.
Investors should also note any recent changes to analyst estimates for KO. These revisions typically reflect the latest short-term business trends, which can change frequently. 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. 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.
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. The Zacks Consensus EPS estimate has moved 0.27% higher within the past month. KO currently has a Zacks Rank of #3 (Hold).
Digging into valuation, KO currently has a Forward P/E ratio of 24.93. This valuation marks a premium compared to its industry's average Forward P/E of 22.82.
It is also worth noting that KO currently has a PEG ratio of 3.28. 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. The Beverages - Soft drinks industry currently had an average PEG ratio of 2.48 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 177, putting it in the bottom 31% of all 250+ industries.
The Zacks Industry Rank gauges the strength of our individual 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.
To follow KO in the coming trading sessions, be sure to utilize Zacks.com.
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CocaCola Company The (KO) : Free Stock Analysis Report
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