In the latest trading session, Coca-Cola (KO) closed at $45.21, marking a -0.04% move from the previous day. This change was narrower than the S&P 500's 1.08% loss on the day. Elsewhere, the Dow lost 1.51%, while the tech-heavy Nasdaq lost 0.86%.
Coming into today, shares of the world's largest beverage maker had lost 9.27% in the past month. In that same time, the Consumer Staples sector lost 2.84%, while the S&P 500 lost 0.3%.
KO will be looking to display strength as it nears its next earnings release, which is expected to be July 21, 2020. In that report, analysts expect KO to post earnings of $0.43 per share. This would mark a year-over-year decline of 31.75%. Meanwhile, the Zacks Consensus Estimate for revenue is projecting net sales of $7.59 billion, down 24.03% from the year-ago period.
Looking at the full year, our Zacks Consensus Estimates suggest analysts are expecting earnings of $1.83 per share and revenue of $33.61 billion. These totals would mark changes of -13.27% and -8.15%, respectively, from last year.
Any recent changes to analyst estimates for KO 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.
Our research shows that these estimate changes are directly correlated with near-term stock prices. To benefit from this, we have developed the Zacks Rank, a proprietary model which takes these estimate changes into account and provides an actionable rating system.
The Zacks Rank system, which ranges from #1 (Strong Buy) to #5 (Strong Sell), has an impressive outside-audited track record of outperformance, with #1 stocks generating an average annual return of +25% since 1988. The Zacks Consensus EPS estimate has moved 0.14% higher within the past month. KO currently has a Zacks Rank of #2 (Buy).
Digging into valuation, KO currently has a Forward P/E ratio of 24.72. For comparison, its industry has an average Forward P/E of 22.32, which means KO is trading at a premium to the group.
It is also worth noting that KO currently has a PEG ratio of 5.14. 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 5.08 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 193, which puts it in the bottom 25% 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.
Be sure to follow all of these stock-moving metrics, and many more, on Zacks.com.
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CocaCola Company The (KO) : Free Stock Analysis Report
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