Coca-Cola (KO) closed at $71.02 in the latest trading session, marking a -1.69% move from the prior day. This change lagged the S&P 500's 1.13% loss on the day. Elsewhere, the Dow saw a downswing of 1.79%, while the tech-heavy Nasdaq depreciated by 1.3%.
The stock of world's largest beverage maker has risen by 0.88% in the past month, lagging the Consumer Staples sector's gain of 3.14% and the S&P 500's gain of 3.55%.
Investors will be eagerly watching for the performance of Coca-Cola in its upcoming earnings disclosure. The company is forecasted to report an EPS of $0.83, showcasing a 1.19% downward movement from the corresponding quarter of the prior year. Meanwhile, the Zacks Consensus Estimate for revenue is projecting net sales of $12.61 billion, up 1.99% from the year-ago period.
For the full year, the Zacks Consensus Estimates are projecting earnings of $2.97 per share and revenue of $48.25 billion, which would represent changes of +3.13% and +2.54%, respectively, from the prior year.
It is also important to note the recent changes to analyst estimates for Coca-Cola. These revisions help to show the ever-changing nature of near-term business trends. With this in mind, we can consider positive estimate revisions a sign of optimism about the business outlook.
Based on our research, we believe these estimate revisions are directly related to near-term 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 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. Over the past month, the Zacks Consensus EPS estimate has moved 0.05% higher. Coca-Cola currently has a Zacks Rank of #2 (Buy).
Looking at valuation, Coca-Cola is presently trading at a Forward P/E ratio of 24.36. This indicates a premium in contrast to its industry's Forward P/E of 19.51.
One should further note that KO currently holds a PEG ratio of 3.79. 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. The average PEG ratio for the Beverages - Soft drinks industry stood at 2.58 at the close of the market yesterday.
The Beverages - Soft drinks industry is part of the Consumer Staples sector. This industry currently has a Zacks Industry Rank of 62, which puts it in the top 26% 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.
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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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