In the latest trading session, Coca-Cola (KO) closed at $59.66, marking a -0.2% move from the previous day. This move was narrower than the S&P 500's daily loss of 0.61%. At the same time, the Dow lost 0.41%, and the tech-heavy Nasdaq gained 10.45%.
Prior to today's trading, shares of the world's largest beverage maker had lost 6.61% over the past month. This has lagged the Consumer Staples sector's loss of 6.6% and the S&P 500's gain of 1.05% in that time.
Coca-Cola will be looking to display strength as it nears its next earnings release. In that report, analysts expect Coca-Cola to post earnings of $0.71 per share. This would mark year-over-year growth of 1.43%. Meanwhile, our latest consensus estimate is calling for revenue of $11.68 billion, up 3.12% from the prior-year quarter.
For the full year, our Zacks Consensus Estimates are projecting earnings of $2.61 per share and revenue of $45 billion, which would represent changes of +5.24% and +4.63%, 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. 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. Investors can capitalize on this by using the Zacks Rank. This model considers these estimate changes and provides a simple, 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. Over the past month, the Zacks Consensus EPS estimate has moved 0.04% higher. Coca-Cola is currently a Zacks Rank #3 (Hold).
In terms of valuation, Coca-Cola is currently trading at a Forward P/E ratio of 22.95. This valuation marks a premium compared to its industry's average Forward P/E of 22.2.
It is also worth noting that KO currently has a PEG ratio of 3.39. This popular metric is similar to the widely-known P/E ratio, with the difference being that the PEG ratio also takes into account the company's expected earnings growth rate. Beverages - Soft drinks stocks are, on average, holding a PEG ratio of 2.44 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 24, which puts it in the top 10% 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.
Be sure to follow all of these stock-moving metrics, and many more, on Zacks.com.
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