Coca-Cola (KO) closed the most recent trading day at $54.52, moving +0.53% from the previous trading session. This move outpaced the S&P 500's daily of 0%. At the same time, the Dow lost 0.19%, and the tech-heavy Nasdaq gained 0.07%.
Prior to today's trading, shares of the world's largest beverage maker had gained 0.24% over the past month. This has lagged the Consumer Staples sector's gain of 1.65% and the S&P 500's gain of 4.25% in that time.
KO will be looking to display strength as it nears its next earnings release, which is expected to be October 18, 2019. On that day, KO is projected to report earnings of $0.56 per share, which would represent a year-over-year decline of 3.45%. Meanwhile, our latest consensus estimate is calling for revenue of $9.52 billion, up 15.46% from the prior-year quarter.
Looking at the full year, our Zacks Consensus Estimates suggest analysts are expecting earnings of $2.10 per share and revenue of $36.85 billion. These totals would mark changes of +0.96% and +15.68%, respectively, from last year.
It is also important to note the recent changes to analyst estimates for KO. 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. 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. The Zacks Consensus EPS estimate remained stagnant within the past month. KO is holding a Zacks Rank of #2 (Buy) right now.
Valuation is also important, so investors should note that KO has a Forward P/E ratio of 25.77 right now. For comparison, its industry has an average Forward P/E of 22.39, which means KO is trading at a premium to the group.
It is also worth noting that KO currently has a PEG ratio of 3.77. 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 2.73 as of yesterday's close.
The Beverages - Soft drinks industry is part of the Consumer Staples sector. This industry currently has a Zacks Industry Rank of 102, which puts it in the top 40% 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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Coca-Cola Company (The) (KO) : Free Stock Analysis Report
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