In the latest close session, Coca-Cola (KO) was up +1.06% at $67.51. This change outpaced the S&P 500's 0.16% loss on the day. Meanwhile, the Dow gained 0.44%, and the Nasdaq, a tech-heavy index, lost 0.76%.
Shares of the world's largest beverage maker witnessed a gain of 0.89% over the previous month, beating the performance of the Consumer Staples sector with its loss of 3.79%, and underperforming the S&P 500's gain of 1.14%.
The investment community will be paying close attention to the earnings performance of Coca-Cola in its upcoming release. The company is slated to reveal its earnings on October 21, 2025. The company is expected to report EPS of $0.78, up 1.3% from the prior-year quarter. Our most recent consensus estimate is calling for quarterly revenue of $12.43 billion, up 4.87% from the year-ago period.
For the entire fiscal year, the Zacks Consensus Estimates are projecting earnings of $2.97 per share and a revenue of $48.42 billion, representing changes of +3.13% and +2.9%, respectively, from the prior year.
Investors should also take note of any recent adjustments to analyst estimates for Coca-Cola. These revisions typically reflect the latest short-term business trends, which can change frequently. Consequently, upward revisions in estimates express analysts' positivity towards the business operations and its ability to generate profits.
Based on our research, we believe these estimate revisions are directly related to near-term stock moves. To take advantage of this, we've established the Zacks Rank, an exclusive model that considers these estimated changes and delivers an operational rating system.
The Zacks Rank system, which ranges from #1 (Strong Buy) to #5 (Strong Sell), has an impressive outside-audited track record of outperformance, with #1 stocks generating an average annual return of +25% since 1988. Over the past month, there's been a 0.16% fall in the Zacks Consensus EPS estimate. Currently, Coca-Cola is carrying a Zacks Rank of #4 (Sell).
In terms of valuation, Coca-Cola is currently trading at a Forward P/E ratio of 22.48. This valuation marks a premium compared to its industry average Forward P/E of 18.19.
Also, we should mention that KO has a PEG ratio of 3.48. The PEG ratio bears resemblance to the frequently used P/E ratio, but this parameter also includes the company's expected earnings growth trajectory. The average PEG ratio for the Beverages - Soft drinks industry stood at 2.47 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 224, putting it in the bottom 10% 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.
Be sure to use Zacks.com to monitor all these stock-influencing metrics, and more, throughout the forthcoming trading sessions.
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CocaCola Company (The) (KO): Free Stock Analysis ReportThis article originally published on Zacks Investment Research (zacks.com).
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