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Coca-Cola (KO) Stock Sinks As Market Gains: What You Should Know
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Coca-Cola (KO - Free Report) closed the most recent trading day at $62.13, moving -0.77% from the previous trading session. This move lagged the S&P 500's daily gain of 0.7%. At the same time, the Dow added 0.56%, and the tech-heavy Nasdaq gained 7.5%.
Coming into today, shares of the world's largest beverage maker had lost 2.13% in the past month. In that same time, the Consumer Staples sector lost 0.13%, while the S&P 500 lost 0.94%.
Wall Street will be looking for positivity from Coca-Cola as it approaches its next earnings report date. In that report, analysts expect Coca-Cola to post earnings of $0.45 per share. This would mark no growth from the prior-year quarter. Our most recent consensus estimate is calling for quarterly revenue of $9.96 billion, up 5.27% from the year-ago period.
It is also important to note the recent changes to analyst estimates for Coca-Cola. These recent revisions tend to reflect the evolving nature of short-term business trends. With this in mind, we can consider positive estimate revisions a sign of optimism about the company's business outlook.
Our research shows that these estimate changes are directly correlated with near-term stock prices. 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, which ranges from #1 (Strong Buy) to #5 (Strong Sell), has an impressive outside-audited track record of outperformance, with #1 stocks generating an average annual return of +25% since 1988. The Zacks Consensus EPS estimate has moved 0.44% higher within the past month. Coca-Cola is currently a Zacks Rank #2 (Buy).
Digging into valuation, Coca-Cola currently has a Forward P/E ratio of 24.68. For comparison, its industry has an average Forward P/E of 24.69, which means Coca-Cola is trading at a discount to the group.
Meanwhile, KO's PEG ratio is currently 3.96. 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 2.55 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 27, which puts it in the top 11% of all 250+ industries.
The Zacks Industry Rank gauges the strength of our 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) Stock Sinks As Market Gains: What You Should Know
Coca-Cola (KO - Free Report) closed the most recent trading day at $62.13, moving -0.77% from the previous trading session. This move lagged the S&P 500's daily gain of 0.7%. At the same time, the Dow added 0.56%, and the tech-heavy Nasdaq gained 7.5%.
Coming into today, shares of the world's largest beverage maker had lost 2.13% in the past month. In that same time, the Consumer Staples sector lost 0.13%, while the S&P 500 lost 0.94%.
Wall Street will be looking for positivity from Coca-Cola as it approaches its next earnings report date. In that report, analysts expect Coca-Cola to post earnings of $0.45 per share. This would mark no growth from the prior-year quarter. Our most recent consensus estimate is calling for quarterly revenue of $9.96 billion, up 5.27% from the year-ago period.
It is also important to note the recent changes to analyst estimates for Coca-Cola. These recent revisions tend to reflect the evolving nature of short-term business trends. With this in mind, we can consider positive estimate revisions a sign of optimism about the company's business outlook.
Our research shows that these estimate changes are directly correlated with near-term stock prices. 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, which ranges from #1 (Strong Buy) to #5 (Strong Sell), has an impressive outside-audited track record of outperformance, with #1 stocks generating an average annual return of +25% since 1988. The Zacks Consensus EPS estimate has moved 0.44% higher within the past month. Coca-Cola is currently a Zacks Rank #2 (Buy).
Digging into valuation, Coca-Cola currently has a Forward P/E ratio of 24.68. For comparison, its industry has an average Forward P/E of 24.69, which means Coca-Cola is trading at a discount to the group.
Meanwhile, KO's PEG ratio is currently 3.96. 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 2.55 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 27, which puts it in the top 11% of all 250+ industries.
The Zacks Industry Rank gauges the strength of our 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.