In the latest trading session, Coca-Cola (KO) closed at $56.53, marking a -0.82% move from the previous day. This change was narrower than the S&P 500's daily loss of 1.47%. Elsewhere, the Dow lost 1.14%, while the tech-heavy Nasdaq lost 1.57%.
Prior to today's trading, shares of the world's largest beverage maker had lost 5.88% over the past month. This has lagged the Consumer Staples sector's loss of 3.87% and the S&P 500's loss of 1.43% in that time.
Coca-Cola will be looking to display strength as it nears its next earnings release, which is expected to be October 24, 2023. On that day, Coca-Cola is projected to report earnings of $0.69 per share, which would represent no growth from the prior-year quarter. Meanwhile, the Zacks Consensus Estimate for revenue is projecting net sales of $11.48 billion, up 3.78% from the year-ago period.
For the full year, our Zacks Consensus Estimates are projecting earnings of $2.63 per share and revenue of $45.01 billion, which would represent changes of +6.05% and +4.68%, respectively, from the prior year.
Investors should also note any recent changes to analyst estimates for Coca-Cola. Recent revisions tend to reflect the latest near-term business trends. With this in mind, we can consider positive estimate revisions a sign of optimism about the company's business outlook.
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. Within the past 30 days, our consensus EPS projection remained stagnant. Coca-Cola is holding a Zacks Rank of #2 (Buy) right now.
Looking at its valuation, Coca-Cola is holding a Forward P/E ratio of 21.64. This valuation marks a premium compared to its industry's average Forward P/E of 21.03.
Also, we should mention that KO has a PEG ratio of 3.34. 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. Beverages - Soft drinks stocks are, on average, holding a PEG ratio of 2.45 based on yesterday's closing prices.
The Beverages - Soft drinks industry is part of the Consumer Staples sector. This industry currently has a Zacks Industry Rank of 39, which puts it in the top 16% of all 250+ industries.
The Zacks Industry Rank includes is listed in order from best to worst in terms of the average Zacks Rank of the individual companies within each of these sectors. 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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