Coca-Cola (KO) Outpaces Stock Market Gains: What You Should Know
Coca-Cola (KO) closed the most recent trading day at $53.71, moving +1.19% from the previous trading session. This move outpaced the S&P 500's daily gain of 0.41%.
Coming into today, shares of the world's largest beverage maker had lost 4.65% in the past month. In that same time, the Consumer Staples sector lost 4.74%, while the S&P 500 lost 4.08%.
Wall Street will be looking for positivity from KO as it approaches its next earnings report date. This is expected to be October 27, 2021. On that day, KO is projected to report earnings of $0.57 per share, which would represent year-over-year growth of 3.64%. Meanwhile, the Zacks Consensus Estimate for revenue is projecting net sales of $9.63 billion, up 11.3% from the year-ago period.
Looking at the full year, our Zacks Consensus Estimates suggest analysts are expecting earnings of $2.25 per share and revenue of $37.85 billion. These totals would mark changes of +15.38% and +14.66%, respectively, from last year.
It is also important to note the recent changes to analyst estimates for KO. These revisions help to show the ever-changing nature of 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. Over the past month, the Zacks Consensus EPS estimate has moved 0.11% lower. KO currently has a Zacks Rank of #3 (Hold).
In terms of valuation, KO is currently trading at a Forward P/E ratio of 23.62. This represents a premium compared to its industry's average Forward P/E of 22.25.
Investors should also note that KO has a PEG ratio of 2.72 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. KO's industry had an average PEG ratio of 2.28 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 87, putting it in the top 35% 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.
Make sure to utilize Zacks. Com to follow all of these stock-moving metrics, and more, in the coming trading sessions.
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CocaCola Company The (KO) : Free Stock Analysis Report
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