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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 at $58.96 in the latest trading session, marking a +0.51% move from the prior day. The stock lagged the S&P 500's daily gain of 2.57%. Elsewhere, the Dow gained 2%, while the tech-heavy Nasdaq added 0.66%.
Heading into today, shares of the world's largest beverage maker had lost 5.39% over the past month, outpacing the Consumer Staples sector's loss of 7.36% and the S&P 500's loss of 7.68% in that time.
Wall Street will be looking for positivity from Coca-Cola as it approaches its next earnings report date. The company is expected to report EPS of $0.57, up 3.64% from the prior-year quarter. Meanwhile, the Zacks Consensus Estimate for revenue is projecting net sales of $9.98 billion, up 10.67% from the year-ago period.
KO's full-year Zacks Consensus Estimates are calling for earnings of $2.46 per share and revenue of $42.06 billion. These results would represent year-over-year changes of +6.03% and +8.8%, respectively.
Investors might also notice recent changes to analyst estimates for Coca-Cola. These revisions help to show the ever-changing nature of near-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.
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. The Zacks Consensus EPS estimate has moved 2.13% higher within the past month. Coca-Cola is currently a Zacks Rank #2 (Buy).
Looking at its valuation, Coca-Cola is holding a Forward P/E ratio of 23.87. This represents a premium compared to its industry's average Forward P/E of 22.8.
Also, we should mention that KO has a PEG ratio of 2.97. The PEG ratio is similar to the widely-used P/E ratio, but this metric also takes the company's expected earnings growth rate into account. Beverages - Soft drinks stocks are, on average, holding a PEG ratio of 2.56 based on yesterday's closing prices.
The Beverages - Soft drinks industry is part of the Consumer Staples sector. This group has a Zacks Industry Rank of 112, putting it in the top 45% 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.
You can find more information on all of these metrics, and much more, on Zacks.com.
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Coca-Cola (KO) Gains But Lags Market: What You Should Know
Coca-Cola (KO - Free Report) closed at $58.96 in the latest trading session, marking a +0.51% move from the prior day. The stock lagged the S&P 500's daily gain of 2.57%. Elsewhere, the Dow gained 2%, while the tech-heavy Nasdaq added 0.66%.
Heading into today, shares of the world's largest beverage maker had lost 5.39% over the past month, outpacing the Consumer Staples sector's loss of 7.36% and the S&P 500's loss of 7.68% in that time.
Wall Street will be looking for positivity from Coca-Cola as it approaches its next earnings report date. The company is expected to report EPS of $0.57, up 3.64% from the prior-year quarter. Meanwhile, the Zacks Consensus Estimate for revenue is projecting net sales of $9.98 billion, up 10.67% from the year-ago period.
KO's full-year Zacks Consensus Estimates are calling for earnings of $2.46 per share and revenue of $42.06 billion. These results would represent year-over-year changes of +6.03% and +8.8%, respectively.
Investors might also notice recent changes to analyst estimates for Coca-Cola. These revisions help to show the ever-changing nature of near-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.
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. The Zacks Consensus EPS estimate has moved 2.13% higher within the past month. Coca-Cola is currently a Zacks Rank #2 (Buy).
Looking at its valuation, Coca-Cola is holding a Forward P/E ratio of 23.87. This represents a premium compared to its industry's average Forward P/E of 22.8.
Also, we should mention that KO has a PEG ratio of 2.97. The PEG ratio is similar to the widely-used P/E ratio, but this metric also takes the company's expected earnings growth rate into account. Beverages - Soft drinks stocks are, on average, holding a PEG ratio of 2.56 based on yesterday's closing prices.
The Beverages - Soft drinks industry is part of the Consumer Staples sector. This group has a Zacks Industry Rank of 112, putting it in the top 45% 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.
You can find more information on all of these metrics, and much more, on Zacks.com.