Coca-Cola (KO) Dips More Than Broader Market: What You Should Know
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Coca-Cola (KO) closed at $71.02 in the latest trading session, marking a -1.69% move from the prior day. This change lagged the S&P 500's 1.13% loss on the day. Elsewhere, the Dow saw a downswing of 1.79%, while the tech-heavy Nasdaq depreciated by 1.3%.
The stock of world's largest beverage maker has risen by 0.88% in the past month, lagging the Consumer Staples sector's gain of 3.14% and the S&P 500's gain of 3.55%.
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Investors will be eagerly watching for the performance of Coca-Cola in its upcoming earnings disclosure. The company is forecasted to report an EPS of $0.83, showcasing a 1.19% downward movement from the corresponding quarter of the prior year. Meanwhile, the Zacks Consensus Estimate for revenue is projecting net sales of $12.61 billion, up 1.99% from the year-ago period.
For the full year, the Zacks Consensus Estimates are projecting earnings of $2.97 per share and revenue of $48.25 billion, which would represent changes of +3.13% and +2.54%, respectively, from the prior year.
It is also important to note the recent changes to analyst estimates for Coca-Cola. These revisions help to show the ever-changing nature of near-term business trends. With this in mind, we can consider positive estimate revisions a sign of optimism about the business outlook.
Based on our research, we believe these estimate revisions are directly related to near-term stock moves. 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 ranges from #1 (Strong Buy) to #5 (Strong Sell). It has a remarkable, outside-audited track record of success, with #1 stocks delivering an average annual return of +25% since 1988. Over the past month, the Zacks Consensus EPS estimate has moved 0.05% higher. Coca-Cola currently has a Zacks Rank of #2 (Buy).
Looking at valuation, Coca-Cola is presently trading at a Forward P/E ratio of 24.36. This indicates a premium in contrast to its industry's Forward P/E of 19.51.
One should further note that KO currently holds a PEG ratio of 3.79. 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. The average PEG ratio for the Beverages - Soft drinks industry stood at 2.58 at the close of the market yesterday.
The Beverages - Soft drinks industry is part of the Consumer Staples sector. This industry currently has a Zacks Industry Rank of 62, which puts it in the top 26% of all 250+ industries.