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Coca-Cola (KO) Outpaces Stock Market Gains: What You Should Know
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Coca-Cola (KO - Free Report) closed at $58.30 in the latest trading session, marking a +0.62% move from the prior day. This change outpaced the S&P 500's 0.07% gain on the day. At the same time, the Dow added 0.02%, and the tech-heavy Nasdaq gained 0.01%.
Prior to today's trading, shares of the world's largest beverage maker had lost 4.94% over the past month. This has lagged the Consumer Staples sector's loss of 1.94% and the S&P 500's gain of 0.38% in that time.
Coca-Cola will be looking to display strength as it nears its next earnings release. In that report, analysts expect Coca-Cola to post earnings of $0.69 per share. This would mark no growth from the year-ago period. Our most recent consensus estimate is calling for quarterly revenue of $11.48 billion, up 3.78% from the year-ago period.
KO's full-year Zacks Consensus Estimates are calling for earnings of $2.63 per share and revenue of $45.01 billion. These results would represent year-over-year changes of +6.05% and +4.68%, respectively.
Any recent changes to analyst estimates for Coca-Cola should also be noted by investors. Recent revisions tend to reflect the latest near-term business trends. As such, positive estimate revisions reflect analyst optimism about the company's business and profitability.
Research indicates that these estimate revisions are directly correlated with near-term share price momentum. 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. Over the past month, the Zacks Consensus EPS estimate remained stagnant. Coca-Cola is currently sporting a Zacks Rank of #3 (Hold).
Valuation is also important, so investors should note that Coca-Cola has a Forward P/E ratio of 22 right now. Its industry sports an average Forward P/E of 19.9, so we one might conclude that Coca-Cola is trading at a premium comparatively.
Investors should also note that KO has a PEG ratio of 3.4 right now. 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 2.46 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 44, putting it in the top 18% 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) Outpaces Stock Market Gains: What You Should Know
Coca-Cola (KO - Free Report) closed at $58.30 in the latest trading session, marking a +0.62% move from the prior day. This change outpaced the S&P 500's 0.07% gain on the day. At the same time, the Dow added 0.02%, and the tech-heavy Nasdaq gained 0.01%.
Prior to today's trading, shares of the world's largest beverage maker had lost 4.94% over the past month. This has lagged the Consumer Staples sector's loss of 1.94% and the S&P 500's gain of 0.38% in that time.
Coca-Cola will be looking to display strength as it nears its next earnings release. In that report, analysts expect Coca-Cola to post earnings of $0.69 per share. This would mark no growth from the year-ago period. Our most recent consensus estimate is calling for quarterly revenue of $11.48 billion, up 3.78% from the year-ago period.
KO's full-year Zacks Consensus Estimates are calling for earnings of $2.63 per share and revenue of $45.01 billion. These results would represent year-over-year changes of +6.05% and +4.68%, respectively.
Any recent changes to analyst estimates for Coca-Cola should also be noted by investors. Recent revisions tend to reflect the latest near-term business trends. As such, positive estimate revisions reflect analyst optimism about the company's business and profitability.
Research indicates that these estimate revisions are directly correlated with near-term share price momentum. 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. Over the past month, the Zacks Consensus EPS estimate remained stagnant. Coca-Cola is currently sporting a Zacks Rank of #3 (Hold).
Valuation is also important, so investors should note that Coca-Cola has a Forward P/E ratio of 22 right now. Its industry sports an average Forward P/E of 19.9, so we one might conclude that Coca-Cola is trading at a premium comparatively.
Investors should also note that KO has a PEG ratio of 3.4 right now. 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 2.46 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 44, putting it in the top 18% 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.