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Coca-Cola (KO) Gains But Lags Market: What You Should Know
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Coca-Cola (KO - Free Report) closed the most recent trading day at $49.38, moving +0.04% from the previous trading session. The stock lagged the S&P 500's daily gain of 1.8%. Meanwhile, the Dow gained 1.68%, and the Nasdaq, a tech-heavy index, added 2.33%.
Heading into today, shares of the world's largest beverage maker had lost 2.22% over the past month, outpacing the Consumer Staples sector's loss of 3.07% and the S&P 500's loss of 6.31% in that time.
Investors will be hoping for strength from KO as it approaches its next earnings release, which is expected to be October 22, 2020. On that day, KO is projected to report earnings of $0.45 per share, which would represent a year-over-year decline of 19.64%. Meanwhile, the Zacks Consensus Estimate for revenue is projecting net sales of $8.35 billion, down 12.22% from the year-ago period.
KO's full-year Zacks Consensus Estimates are calling for earnings of $1.80 per share and revenue of $32.97 billion. These results would represent year-over-year changes of -14.69% and -9.89%, respectively.
Investors might also notice recent changes to analyst estimates for KO. These recent revisions tend to reflect the evolving nature of short-term business trends. As such, positive estimate revisions reflect analyst optimism about the company's business and profitability.
Based on our research, we believe these estimate revisions are directly related to near-team stock moves. Investors can capitalize on this by using the Zacks Rank. This model considers these estimate changes and provides a simple, actionable rating system.
Ranging from #1 (Strong Buy) to #5 (Strong Sell), the Zacks Rank system has a proven, outside-audited track record of outperformance, with #1 stocks returning an average of +25% annually since 1988. The Zacks Consensus EPS estimate remained stagnant within the past month. KO is currently sporting a Zacks Rank of #4 (Sell).
Investors should also note KO's current valuation metrics, including its Forward P/E ratio of 27.46. For comparison, its industry has an average Forward P/E of 21.73, which means KO is trading at a premium to the group.
Also, we should mention that KO has a PEG ratio of 5.71. 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 4.54 as of yesterday's close.
The Beverages - Soft drinks industry is part of the Consumer Staples sector. This industry currently has a Zacks Industry Rank of 120, which puts it in the top 48% 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.
To follow KO in the coming trading sessions, be sure to utilize Zacks.com.
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Coca-Cola (KO) Gains But Lags Market: What You Should Know
Coca-Cola (KO - Free Report) closed the most recent trading day at $49.38, moving +0.04% from the previous trading session. The stock lagged the S&P 500's daily gain of 1.8%. Meanwhile, the Dow gained 1.68%, and the Nasdaq, a tech-heavy index, added 2.33%.
Heading into today, shares of the world's largest beverage maker had lost 2.22% over the past month, outpacing the Consumer Staples sector's loss of 3.07% and the S&P 500's loss of 6.31% in that time.
Investors will be hoping for strength from KO as it approaches its next earnings release, which is expected to be October 22, 2020. On that day, KO is projected to report earnings of $0.45 per share, which would represent a year-over-year decline of 19.64%. Meanwhile, the Zacks Consensus Estimate for revenue is projecting net sales of $8.35 billion, down 12.22% from the year-ago period.
KO's full-year Zacks Consensus Estimates are calling for earnings of $1.80 per share and revenue of $32.97 billion. These results would represent year-over-year changes of -14.69% and -9.89%, respectively.
Investors might also notice recent changes to analyst estimates for KO. These recent revisions tend to reflect the evolving nature of short-term business trends. As such, positive estimate revisions reflect analyst optimism about the company's business and profitability.
Based on our research, we believe these estimate revisions are directly related to near-team stock moves. Investors can capitalize on this by using the Zacks Rank. This model considers these estimate changes and provides a simple, actionable rating system.
Ranging from #1 (Strong Buy) to #5 (Strong Sell), the Zacks Rank system has a proven, outside-audited track record of outperformance, with #1 stocks returning an average of +25% annually since 1988. The Zacks Consensus EPS estimate remained stagnant within the past month. KO is currently sporting a Zacks Rank of #4 (Sell).
Investors should also note KO's current valuation metrics, including its Forward P/E ratio of 27.46. For comparison, its industry has an average Forward P/E of 21.73, which means KO is trading at a premium to the group.
Also, we should mention that KO has a PEG ratio of 5.71. 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 4.54 as of yesterday's close.
The Beverages - Soft drinks industry is part of the Consumer Staples sector. This industry currently has a Zacks Industry Rank of 120, which puts it in the top 48% 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.
To follow KO in the coming trading sessions, be sure to utilize Zacks.com.