In the latest trading session, Coca-Cola (KO) closed at $62.26, marking a +0.37% move from the previous day. The stock exceeded the S&P 500, which registered a loss of 0.43% for the day. At the same time, the Dow lost 0.07%, and the tech-heavy Nasdaq lost 0.9%.
The world's largest beverage maker's stock has dropped by 2.55% in the past month, exceeding the Consumer Staples sector's loss of 6.07% and lagging the S&P 500's loss of 1.98%.
The investment community will be closely monitoring the performance of Coca-Cola in its forthcoming earnings report. The company's upcoming EPS is projected at $0.52, signifying a 6.12% increase compared to the same quarter of the previous year. Simultaneously, our latest consensus estimate expects the revenue to be $10.72 billion, showing a 1.21% drop compared to the year-ago quarter.
For the annual period, the Zacks Consensus Estimates anticipate earnings of $2.85 per share and a revenue of $46.24 billion, signifying shifts of +5.95% and +1.05%, respectively, from the last year.
Investors should also pay attention to any latest changes in analyst estimates for Coca-Cola. These revisions typically reflect the latest short-term business trends, which can change frequently. As such, positive estimate revisions reflect analyst optimism about the company's business and profitability.
Based on our research, we believe these estimate revisions are directly related to near-team 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, which varies between #1 (Strong Buy) and #5 (Strong Sell), carries an impressive track record of exceeding expectations, confirmed by external audits, with stocks at #1 delivering 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 holding a Zacks Rank of #3 (Hold) right now.
With respect to valuation, Coca-Cola is currently being traded at a Forward P/E ratio of 21.75. Its industry sports an average Forward P/E of 18.35, so one might conclude that Coca-Cola is trading at a premium comparatively.
Meanwhile, KO's PEG ratio is currently 3.53. 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. As the market closed yesterday, the Beverages - Soft drinks industry was having an average PEG ratio of 2.65.
The Beverages - Soft drinks industry is part of the Consumer Staples sector. Currently, this industry holds a Zacks Industry Rank of 169, positioning it in the bottom 33% of all 250+ industries.
The Zacks Industry Rank assesses the strength of our separate industry groups by calculating the average Zacks Rank of the individual stocks contained within the groups. Our research shows that the top 50% rated industries outperform the bottom half by a factor of 2 to 1.
Ensure to harness Zacks.com to stay updated with all these stock-shifting metrics, among others, in the next trading sessions.
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