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Coca-Cola (KO) Gains As Market Dips: What You Should Know
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Coca-Cola (KO - Free Report) closed the most recent trading day at $66.21, moving +0.38% from the previous trading session. The stock outpaced the S&P 500's daily loss of 1.48%. Elsewhere, the Dow lost 1.05%, while the tech-heavy Nasdaq lost 0.46%.
Heading into today, shares of the world's largest beverage maker had gained 9.21% over the past month, outpacing the Consumer Staples sector's gain of 6.52% and the S&P 500's gain of 0.08% in that time.
Coca-Cola will be looking to display strength as it nears its next earnings release, which is expected to be April 25, 2022. The company is expected to report EPS of $0.58, up 5.45% from the prior-year quarter. Meanwhile, the Zacks Consensus Estimate for revenue is projecting net sales of $9.91 billion, up 9.89% from the year-ago period.
KO's full-year Zacks Consensus Estimates are calling for earnings of $2.44 per share and revenue of $41.85 billion. These results would represent year-over-year changes of +5.17% and +8.26%, respectively.
It is also important to note the recent changes to analyst estimates for Coca-Cola. These revisions typically reflect the latest short-term business trends, which can change frequently. As a result, we can interpret positive estimate revisions as a good sign for the company's business outlook.
Based on our research, we believe these estimate revisions are directly related to near-team stock moves. To benefit from this, we have developed the Zacks Rank, a proprietary model which takes these estimate changes into account and provides an 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. Within the past 30 days, our consensus EPS projection has moved 0.41% lower. Coca-Cola is holding a Zacks Rank of #3 (Hold) right now.
In terms of valuation, Coca-Cola is currently trading at a Forward P/E ratio of 26.99. This valuation marks a premium compared to its industry's average Forward P/E of 22.53.
Also, we should mention that KO has a PEG ratio of 3.2. 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 2.84 based on yesterday's closing prices.
The Beverages - Soft drinks industry is part of the Consumer Staples sector. This industry currently has a Zacks Industry Rank of 204, which puts it in the bottom 20% 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.
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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Coca-Cola (KO) Gains As Market Dips: What You Should Know
Coca-Cola (KO - Free Report) closed the most recent trading day at $66.21, moving +0.38% from the previous trading session. The stock outpaced the S&P 500's daily loss of 1.48%. Elsewhere, the Dow lost 1.05%, while the tech-heavy Nasdaq lost 0.46%.
Heading into today, shares of the world's largest beverage maker had gained 9.21% over the past month, outpacing the Consumer Staples sector's gain of 6.52% and the S&P 500's gain of 0.08% in that time.
Coca-Cola will be looking to display strength as it nears its next earnings release, which is expected to be April 25, 2022. The company is expected to report EPS of $0.58, up 5.45% from the prior-year quarter. Meanwhile, the Zacks Consensus Estimate for revenue is projecting net sales of $9.91 billion, up 9.89% from the year-ago period.
KO's full-year Zacks Consensus Estimates are calling for earnings of $2.44 per share and revenue of $41.85 billion. These results would represent year-over-year changes of +5.17% and +8.26%, respectively.
It is also important to note the recent changes to analyst estimates for Coca-Cola. These revisions typically reflect the latest short-term business trends, which can change frequently. As a result, we can interpret positive estimate revisions as a good sign for the company's business outlook.
Based on our research, we believe these estimate revisions are directly related to near-team stock moves. To benefit from this, we have developed the Zacks Rank, a proprietary model which takes these estimate changes into account and provides an 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. Within the past 30 days, our consensus EPS projection has moved 0.41% lower. Coca-Cola is holding a Zacks Rank of #3 (Hold) right now.
In terms of valuation, Coca-Cola is currently trading at a Forward P/E ratio of 26.99. This valuation marks a premium compared to its industry's average Forward P/E of 22.53.
Also, we should mention that KO has a PEG ratio of 3.2. 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 2.84 based on yesterday's closing prices.
The Beverages - Soft drinks industry is part of the Consumer Staples sector. This industry currently has a Zacks Industry Rank of 204, which puts it in the bottom 20% 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.
Make sure to utilize Zacks.com to follow all of these stock-moving metrics, and more, in the coming trading sessions.