Coca-Cola (KO) closed at $73.90 in the latest trading session, marking a +1.55% move from the prior day. This change lagged the S&P 500's 2.51% gain on the day. Meanwhile, the Dow experienced a rise of 2.66%, and the technology-dominated Nasdaq saw an increase of 2.71%.
Coming into today, shares of the world's largest beverage maker had gained 5.54% in the past month. In that same time, the Consumer Staples sector gained 2.1%, while the S&P 500 lost 8.86%.
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 April 29, 2025. The company is forecasted to report an EPS of $0.71, showcasing a 1.39% downward movement from the corresponding quarter of the prior year. Meanwhile, the Zacks Consensus Estimate for revenue is projecting net sales of $11.14 billion, down 1.44% from the year-ago period.
For the full year, the Zacks Consensus Estimates are projecting earnings of $2.96 per share and revenue of $47.99 billion, which would represent changes of +2.78% and +1.98%, respectively, from the prior year.
Investors should also note any recent changes to analyst estimates for Coca-Cola. These latest adjustments often mirror the shifting dynamics of short-term business patterns. Therefore, positive revisions in estimates convey analysts' confidence in the company's business performance and profit potential.
Based on our research, we believe these estimate revisions are directly related to near-team stock moves. To capitalize on this, we've crafted the Zacks Rank, a unique model that incorporates these estimate changes and offers a practical rating system.
The Zacks Rank system, stretching from #1 (Strong Buy) to #5 (Strong Sell), has a noteworthy track record of outperforming, validated by third-party audits, with stocks rated #1 producing an average annual return of +25% since the year 1988. Within the past 30 days, our consensus EPS projection has moved 0.01% lower. Coca-Cola is holding a Zacks Rank of #3 (Hold) right now.
Looking at valuation, Coca-Cola is presently trading at a Forward P/E ratio of 24.61. This indicates a premium in contrast to its industry's Forward P/E of 19.29.
It's also important to note that KO currently trades at a PEG ratio of 3.95. The PEG ratio bears resemblance to the frequently used P/E ratio, but this parameter also includes the company's expected earnings growth trajectory. KO's industry had an average PEG ratio of 2.71 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 75, placing it within the top 31% of over 250 industries.
The Zacks Industry Rank assesses the vigor of our specific industry groups by computing the average Zacks Rank of the individual stocks incorporated in the groups. Our research shows that the top 50% rated industries outperform the bottom half by a factor of 2 to 1.
Keep in mind to rely on Zacks.com to watch all these stock-impacting metrics, and more, in the succeeding 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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