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Coca-Cola (KO) Suffers a Larger Drop Than the General Market: Key Insights

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In the latest market close, Coca-Cola (KO - Free Report) reached $69.25, with a -0.46% movement compared to the previous day. The stock's change was less than the S&P 500's daily loss of 0.21%. Meanwhile, the Dow lost 0.14%, and the Nasdaq, a tech-heavy index, lost 0.05%.

The the stock of world's largest beverage maker has fallen by 2.12% in the past month, leading the Consumer Staples sector's loss of 3.62% and undershooting the S&P 500's gain of 5.94%.

Investors will be eagerly watching for the performance of Coca-Cola in its upcoming earnings disclosure. The company's earnings report is set to be unveiled on October 23, 2024. The company is predicted to post an EPS of $0.74, indicating constancy compared to the equivalent quarter last year. In the meantime, our current consensus estimate forecasts the revenue to be $11.63 billion, indicating a 2.67% decline compared to the corresponding quarter of the prior year.

KO's full-year Zacks Consensus Estimates are calling for earnings of $2.85 per share and revenue of $46.03 billion. These results would represent year-over-year changes of +5.95% and +0.61%, respectively.

Investors should also pay attention to any latest changes in 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.

Empirical research indicates that these revisions in estimates have a direct correlation with impending stock price performance. To capitalize on this, we've crafted the Zacks Rank, a unique model that incorporates these estimate changes and offers a practical rating system.

The Zacks Rank system, ranging from #1 (Strong Buy) to #5 (Strong Sell), possesses a remarkable history of outdoing, externally audited, with #1 stocks returning an average annual gain of +25% since 1988. Over the past month, the Zacks Consensus EPS estimate has moved 0.07% lower. Right now, Coca-Cola possesses a Zacks Rank of #3 (Hold).

In terms of valuation, Coca-Cola is presently being traded at a Forward P/E ratio of 24.44. For comparison, its industry has an average Forward P/E of 18.3, which means Coca-Cola is trading at a premium to the group.

One should further note that KO currently holds a PEG ratio of 3.92. 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. KO's industry had an average PEG ratio of 2.92 as of yesterday's close.

The Beverages - Soft drinks industry is part of the Consumer Staples sector. At present, this industry carries a Zacks Industry Rank of 182, placing it within the bottom 28% of over 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.

Don't forget to use Zacks.com to keep track of all these stock-moving metrics, and others, in the upcoming trading sessions.


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