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Coca-Cola (KO) Sees a More Significant Dip Than Broader Market: Some Facts to Know

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The latest trading session saw Coca-Cola (KO - Free Report) ending at $59.27, denoting a -0.4% adjustment from its last day's close. The stock trailed the S&P 500, which registered a daily loss of 0.04%. Meanwhile, the Dow lost 0.03%, and the Nasdaq, a tech-heavy index, added 0.03%.

The the stock of world's largest beverage maker has fallen by 0.02% in the past month, leading the Consumer Staples sector's loss of 3.79% and undershooting the S&P 500's gain of 2.57%.

Analysts and investors alike will be keeping a close eye on the performance of Coca-Cola in its upcoming earnings disclosure. The company's earnings report is set to go public on April 30, 2024. The company is forecasted to report an EPS of $0.70, showcasing a 2.94% upward movement from the corresponding quarter of the prior year. Our most recent consensus estimate is calling for quarterly revenue of $10.98 billion, up 0.01% from the year-ago period.

In terms of the entire fiscal year, the Zacks Consensus Estimates predict earnings of $2.81 per share and a revenue of $45.83 billion, indicating changes of +4.46% and +0.16%, respectively, from the former year.

It's also important for investors to be aware of any recent modifications to analyst estimates for Coca-Cola. Recent revisions tend to reflect the latest near-term business trends. Therefore, positive revisions in estimates convey analysts' confidence in the company's business performance and profit potential.

Our research reveals that these estimate alterations are directly linked with the stock price performance in the near future. To take advantage of this, we've established the Zacks Rank, an exclusive model that considers these estimated changes and delivers an operational 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 has shifted 0.03% upward. Coca-Cola currently has a Zacks Rank of #3 (Hold).

Valuation is also important, so investors should note that Coca-Cola has a Forward P/E ratio of 21.15 right now. For comparison, its industry has an average Forward P/E of 18.67, which means Coca-Cola is trading at a premium to the group.

It's also important to note that KO currently trades at a PEG ratio of 3.37. 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. By the end of yesterday's trading, the Beverages - Soft drinks industry had an average PEG ratio of 2.25.

The Beverages - Soft drinks industry is part of the Consumer Staples sector. At present, this industry carries a Zacks Industry Rank of 38, placing it within the top 16% of over 250 industries.

The Zacks Industry Rank assesses the strength of our separate industry groups by calculating the average Zacks Rank of the individual stocks contained within the groups. Our research shows that the top 50% rated industries outperform the bottom half by a factor of 2 to 1.

Be sure to use Zacks.com to monitor all these stock-influencing metrics, and more, throughout the forthcoming trading sessions.


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