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CocaCola Company (The) (KO) - free report >>
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Bear of the Day: Vita Coco (COCO)
With the market spiking higher across the board, it can feel like no matter what you do you are guaranteed to make money. That could not be further from the case. Sure, a rally helps, but eventually a company needs to stand on its own two. What that means, is that earnings have to be there. Stocks with the strongest earnings trends have the highest chance of hanging in over the long run. One way to find stocks with the strongest earnings trends is by leaning on the tried-and-true power of the Zacks Rank.
Today’s Bear of the Day is a stock that has fallen out of the good graces of our Zacks Rank. That means that this company has seen estimates move in the wrong direction, to the downside. It’s Zacks Rank #5 (Strong Sell) Vita Coco ((COCO - Free Report) ). The Vita Coco Company, Inc. develops, markets, and distributes coconut water products under the Vita Coco brand name in the United States, Canada, Europe, the Middle East, and the Asia Pacific. The company offers coconut oil and coconut milk; juice, hydration mix, and milk; sparkling water; Runa, a plant-based energy drink; packaged water under the Ever & Ever brand name; and PWR LIFT, a protein-infused fitness drink. It also provides private label coconut water and oil to retailers.
The reason for the unfavorable rank is that analysts have cut estimates for the current year and next year recently. Over the last thirty days, analysts have dropped their numbers for both periods. This bearish sentiment has dropped the Zacks Consensus Estimate for the current year from 79 cents to 77 cents and next year’s number from 92 cents to 88 cents.
The Beverages – Soft Drinks industry ranks in the Top 33% of our Zacks Industry Rank. Investors looking for names within this industry should check out Zacks Rank #2 (Buy) stocks Coca-Cola ((KO - Free Report) ) and Coca-Cola Europacific Partners ((CCEP - Free Report) ).