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Coca-Cola (KO) Beats Stock Market Upswing: What Investors Need to Know
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Coca-Cola (KO - Free Report) closed the latest trading day at $72.10, indicating a +0.97% change from the previous session's end. This change outpaced the S&P 500's 0.13% gain on the day. On the other hand, the Dow registered a gain of 0.55%, and the technology-centric Nasdaq decreased by 0.52%.
Shares of the world's largest beverage maker witnessed a gain of 3.22% over the previous month, trailing the performance of the Consumer Staples sector with its gain of 4.49% and the S&P 500's gain of 3.67%.
The investment community will be closely monitoring the performance of Coca-Cola in its forthcoming earnings report. The company is expected to report EPS of $0.75, up 1.35% from the prior-year quarter. In the meantime, our current consensus estimate forecasts the revenue to be $11.65 billion, indicating a 2.56% decline compared to the corresponding quarter of the prior year.
For the entire fiscal year, the Zacks Consensus Estimates are projecting earnings of $2.85 per share and a revenue of $46.03 billion, representing changes of +5.95% and +0.61%, respectively, from the prior year.
Investors might also notice recent changes to analyst estimates for Coca-Cola. These recent revisions tend to reflect the evolving nature of short-term business trends. Therefore, positive revisions in estimates convey analysts' confidence in the company's business performance and profit potential.
Our research suggests that these changes in estimates have a direct relationship with upcoming stock price performance. 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, which varies between #1 (Strong Buy) and #5 (Strong Sell), carries an impressive track record of exceeding expectations, confirmed by external audits, with stocks at #1 delivering an average annual return of +25% since 1988. Over the past month, there's been a 0.03% rise in the Zacks Consensus EPS estimate. Coca-Cola is currently a Zacks Rank #2 (Buy).
Looking at its valuation, Coca-Cola is holding a Forward P/E ratio of 25.07. For comparison, its industry has an average Forward P/E of 19.44, which means Coca-Cola is trading at a premium to the group.
One should further note that KO currently holds a PEG ratio of 3.95. This metric is used similarly to the famous P/E ratio, but the PEG ratio also takes into account the stock's expected earnings growth rate. As of the close of trade yesterday, the Beverages - Soft drinks industry held an average PEG ratio of 2.95.
The Beverages - Soft drinks industry is part of the Consumer Staples sector. With its current Zacks Industry Rank of 160, this industry ranks in the bottom 37% of all industries, numbering over 250.
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.
You can find more information on all of these metrics, and much more, on Zacks.com.
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Coca-Cola (KO) Beats Stock Market Upswing: What Investors Need to Know
Coca-Cola (KO - Free Report) closed the latest trading day at $72.10, indicating a +0.97% change from the previous session's end. This change outpaced the S&P 500's 0.13% gain on the day. On the other hand, the Dow registered a gain of 0.55%, and the technology-centric Nasdaq decreased by 0.52%.
Shares of the world's largest beverage maker witnessed a gain of 3.22% over the previous month, trailing the performance of the Consumer Staples sector with its gain of 4.49% and the S&P 500's gain of 3.67%.
The investment community will be closely monitoring the performance of Coca-Cola in its forthcoming earnings report. The company is expected to report EPS of $0.75, up 1.35% from the prior-year quarter. In the meantime, our current consensus estimate forecasts the revenue to be $11.65 billion, indicating a 2.56% decline compared to the corresponding quarter of the prior year.
For the entire fiscal year, the Zacks Consensus Estimates are projecting earnings of $2.85 per share and a revenue of $46.03 billion, representing changes of +5.95% and +0.61%, respectively, from the prior year.
Investors might also notice recent changes to analyst estimates for Coca-Cola. These recent revisions tend to reflect the evolving nature of short-term business trends. Therefore, positive revisions in estimates convey analysts' confidence in the company's business performance and profit potential.
Our research suggests that these changes in estimates have a direct relationship with upcoming stock price performance. 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, which varies between #1 (Strong Buy) and #5 (Strong Sell), carries an impressive track record of exceeding expectations, confirmed by external audits, with stocks at #1 delivering an average annual return of +25% since 1988. Over the past month, there's been a 0.03% rise in the Zacks Consensus EPS estimate. Coca-Cola is currently a Zacks Rank #2 (Buy).
Looking at its valuation, Coca-Cola is holding a Forward P/E ratio of 25.07. For comparison, its industry has an average Forward P/E of 19.44, which means Coca-Cola is trading at a premium to the group.
One should further note that KO currently holds a PEG ratio of 3.95. This metric is used similarly to the famous P/E ratio, but the PEG ratio also takes into account the stock's expected earnings growth rate. As of the close of trade yesterday, the Beverages - Soft drinks industry held an average PEG ratio of 2.95.
The Beverages - Soft drinks industry is part of the Consumer Staples sector. With its current Zacks Industry Rank of 160, this industry ranks in the bottom 37% of all industries, numbering over 250.
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.
You can find more information on all of these metrics, and much more, on Zacks.com.