Advertisement
Australia markets closed

  • ALL ORDS

    7,817.40
    -81.50 (-1.03%)
     

  • ASX 200

    7,567.30
    -74.80 (-0.98%)
     

  • AUD/USD

    0.6409
    -0.0017 (-0.26%)
     

  • OIL

    82.02
    -0.71 (-0.86%)
     

  • GOLD

    2,389.40
    -8.60 (-0.36%)
     

  • Bitcoin AUD

    101,198.80
    +3,034.19 (+3.09%)
     

  • CMC Crypto 200

    1,337.17
    +24.55 (+1.91%)
     

  • AUD/EUR

    0.6017
    -0.0014 (-0.24%)
     

  • AUD/NZD

    1.0891
    +0.0016 (+0.14%)
     

  • NZX 50

    11,796.21
    -39.83 (-0.34%)
     

  • NASDAQ

    17,394.31
    -99.31 (-0.57%)
     

  • FTSE

    7,824.73
    -52.32 (-0.66%)
     

  • Dow Jones

    37,775.38
    +22.07 (+0.06%)
     

  • DAX

    17,710.78
    -126.62 (-0.71%)
     

  • Hang Seng

    16,224.14
    -161.73 (-0.99%)
     

  • NIKKEI 225

    37,068.35
    -1,011.35 (-2.66%)
     

Coca-Cola (KO) Dips More Than Broader Markets: What You Should Know

Zacks Equity Research
·3-min read

Coca-Cola (KO) closed the most recent trading day at $59.60, moving -0.37% from the previous trading session. This change lagged the S&P 500's 0.15% loss on the day. Elsewhere, the Dow lost 0.38%, while the tech-heavy Nasdaq lost 0.05%.

Prior to today's trading, shares of the world's largest beverage maker had gained 1.6% over the past month. This has outpaced the Consumer Staples sector's loss of 0.41% and the S&P 500's loss of 7.66% in that time.

Investors will be hoping for strength from Coca-Cola as it approaches its next earnings release, which is expected to be February 10, 2022. The company is expected to report EPS of $0.40, down 14.89% from the prior-year quarter. Our most recent consensus estimate is calling for quarterly revenue of $8.94 billion, up 3.77% from the year-ago period.

Investors should also note any recent changes to analyst estimates for Coca-Cola. These revisions help to show the ever-changing nature of near-term business trends. As such, positive estimate revisions reflect analyst optimism about the company's business and profitability.

ADVERTISEMENT

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.

Ranging from #1 (Strong Buy) to #5 (Strong Sell), the Zacks Rank system has a proven, outside-audited track record of outperformance, with #1 stocks returning an average of +25% annually since 1988. Over the past month, the Zacks Consensus EPS estimate has moved 0.57% lower. Coca-Cola is holding a Zacks Rank of #3 (Hold) right now.

Looking at its valuation, Coca-Cola is holding a Forward P/E ratio of 24.87. For comparison, its industry has an average Forward P/E of 22.51, which means Coca-Cola is trading at a premium to the group.

We can also see that KO currently has a PEG ratio of 3.1. 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. KO's industry had an average PEG ratio of 2.13 as of yesterday's close.

The Beverages - Soft drinks industry is part of the Consumer Staples sector. This industry currently has a Zacks Industry Rank of 204, which puts it in the bottom 20% 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.

To follow KO in the coming trading sessions, be sure to utilize Zacks.com.


Want the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days. Click to get this free report
 
CocaCola Company The (KO) : Free Stock Analysis Report
 
To read this article on Zacks.com click here.