Coca-Cola (KO) closed the latest trading day at $71.68, indicating a -0.25% change from the previous session's end. This move was narrower than the S&P 500's daily loss of 2.24%. Meanwhile, the Dow lost 1.73%, and the Nasdaq, a tech-heavy index, lost 3.07%.
Shares of the world's largest beverage maker have appreciated by 3.57% over the course of the past month, outperforming the Consumer Staples sector's gain of 1.31% and the S&P 500's loss of 4.17%.
Analysts and investors alike will be keeping a close eye on the performance of Coca-Cola in its upcoming earnings disclosure. The company's earnings report is set to go public on April 29, 2025. In that report, analysts expect Coca-Cola to post earnings of $0.71 per share. This would mark a year-over-year decline of 1.39%. In the meantime, our current consensus estimate forecasts the revenue to be $11.14 billion, indicating a 1.44% decline compared to the corresponding quarter of the prior year.
For the entire fiscal year, the Zacks Consensus Estimates are projecting earnings of $2.96 per share and a revenue of $47.99 billion, representing changes of +2.78% and +1.98%, respectively, from the prior year.
Furthermore, it would be beneficial for investors to monitor any recent shifts in analyst projections for Coca-Cola. Recent revisions tend to reflect the latest near-term business trends. Hence, positive alterations in estimates signify analyst optimism regarding the company's business and profitability.
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.
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 past month, there's been a 0.01% fall in the Zacks Consensus EPS estimate. At present, Coca-Cola boasts a Zacks Rank of #3 (Hold).
Looking at valuation, Coca-Cola is presently trading at a Forward P/E ratio of 24.3. For comparison, its industry has an average Forward P/E of 18.74, which means Coca-Cola is trading at a premium to the group.
It's also important to note that KO currently trades at a PEG ratio of 3.88. 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 2.72 as of yesterday's close.
The Beverages - Soft drinks industry is part of the Consumer Staples sector. At present, this industry carries a Zacks Industry Rank of 43, placing it within the top 18% of over 250 industries.
The Zacks Industry Rank evaluates the power of our distinct industry groups by determining the average Zacks Rank of the individual stocks forming the groups. Our research shows that the top 50% rated industries outperform the bottom half by a factor of 2 to 1.
Be sure to follow all of these stock-moving metrics, and many more, on Zacks.com.
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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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