Coca-Cola (KO) ended the recent trading session at $70.24, demonstrating a -1.08% change from the preceding day's closing price. The stock's performance was behind the S&P 500's daily loss of 0.07%. Elsewhere, the Dow saw a downswing of 0.37%, while the tech-heavy Nasdaq appreciated by 0.03%.
The stock of world's largest beverage maker has fallen by 1.06% in the past month, lagging the Consumer Staples sector's gain of 0.21% and the S&P 500's gain of 3.94%.
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 July 22, 2025. The company is predicted to post an EPS of $0.83, indicating a 1.19% decline compared to the equivalent quarter last year. At the same time, our most recent consensus estimate is projecting a revenue of $12.61 billion, reflecting a 1.99% rise from the equivalent quarter last year.
For the annual period, the Zacks Consensus Estimates anticipate earnings of $2.97 per share and a revenue of $48.25 billion, signifying shifts of +3.13% and +2.54%, respectively, from the last year.
It's also important for investors to be aware of any recent modifications to analyst estimates for Coca-Cola. These revisions help to show the ever-changing nature of near-term business trends. 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 exploit this, we've formed the Zacks Rank, a quantitative model that includes these estimate changes and presents a viable 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. The Zacks Consensus EPS estimate has moved 0.05% higher within the past month. Coca-Cola currently has a Zacks Rank of #2 (Buy).
Looking at its valuation, Coca-Cola is holding a Forward P/E ratio of 23.95. Its industry sports an average Forward P/E of 19.96, so one might conclude that Coca-Cola is trading at a premium comparatively.
One should further note that KO currently holds a PEG ratio of 3.72. This metric is used similarly to the famous P/E ratio, but the PEG ratio also takes into account the stock's expected earnings growth rate. As the market closed yesterday, the Beverages - Soft drinks industry was having an average PEG ratio of 2.6.
The Beverages - Soft drinks industry is part of the Consumer Staples sector. Currently, this industry holds a Zacks Industry Rank of 91, positioning it in the top 37% of all 250+ industries.
The Zacks Industry Rank gauges the strength of our individual industry groups by measuring the average Zacks Rank of the individual stocks within 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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