Coca-Cola (KO) closed at $66.22 in the latest trading session, marking a -1.19% move from the prior day. This change lagged the S&P 500's daily gain of 0.47%. Meanwhile, the Dow experienced a rise of 0.11%, and the technology-dominated Nasdaq saw an increase of 0.94%.
Shares of the world's largest beverage maker witnessed a loss of 4.16% over the previous month, trailing the performance of the Consumer Staples sector with its loss of 1.75%, and the S&P 500's gain of 2.32%.
The investment community will be paying close attention to the earnings performance of Coca-Cola in its upcoming release. It is anticipated that the company will report an EPS of $0.79, marking a 2.6% rise compared to the same quarter of the previous year. Our most recent consensus estimate is calling for quarterly revenue of $12.51 billion, up 5.57% from the year-ago period.
For the annual period, the Zacks Consensus Estimates anticipate earnings of $2.98 per share and a revenue of $48.56 billion, signifying shifts of +3.47% and +3.19%, respectively, from the last year.
Investors should also note any recent changes to analyst estimates for Coca-Cola. 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 business outlook.
Our research shows that these estimate changes are directly correlated with near-term stock prices. To utilize this, we have created the Zacks Rank, a proprietary model that integrates these estimate changes and provides a functional rating system.
The Zacks Rank system, running from #1 (Strong Buy) to #5 (Strong Sell), holds an admirable track record of superior performance, independently audited, with #1 stocks contributing an average annual return of +25% since 1988. Over the last 30 days, the Zacks Consensus EPS estimate has remained unchanged. Right now, Coca-Cola possesses a Zacks Rank of #3 (Hold).
From a valuation perspective, Coca-Cola is currently exchanging hands at a Forward P/E ratio of 22.52. This expresses a premium compared to the average Forward P/E of 17.88 of its industry.
One should further note that KO currently holds a PEG ratio of 3.49. The PEG ratio is akin to the commonly utilized P/E ratio, but this measure also incorporates the company's anticipated earnings growth rate. The average PEG ratio for the Beverages - Soft drinks industry stood at 2.25 at the close of the market yesterday.
The Beverages - Soft drinks industry is part of the Consumer Staples sector. This group has a Zacks Industry Rank of 210, putting it in the bottom 15% of all 250+ industries.
The strength of our individual industry groups is measured by the Zacks Industry Rank, which is calculated based on the average Zacks Rank of the individual stocks within these 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.
Want the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days. Click to get this free report
CocaCola Company (The) (KO): Free Stock Analysis ReportThis article originally published on Zacks Investment Research (zacks.com).
Zacks Investment Research
