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Coca-Cola (KO) Outpaces Stock Market Gains: What You Should Know
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Coca-Cola (KO - Free Report) closed the most recent trading day at $48.95, moving +0.55% from the previous trading session. This move outpaced the S&P 500's daily gain of 0.03%. Elsewhere, the Dow lost 0.04%, while the tech-heavy Nasdaq added 0.55%.
Coming into today, shares of the world's largest beverage maker had lost 8.29% in the past month. In that same time, the Consumer Staples sector lost 2.53%, while the S&P 500 gained 3.99%.
KO will be looking to display strength as it nears its next earnings release, which is expected to be February 10, 2021. The company is expected to report EPS of $0.41, down 6.82% from the prior-year quarter. Meanwhile, our latest consensus estimate is calling for revenue of $8.65 billion, down 4.64% from the prior-year quarter.
Any recent changes to analyst estimates for KO should also be noted by investors. These revisions typically reflect the latest short-term business trends, which can change frequently. With this in mind, we can consider positive estimate revisions a sign of optimism about the company's business outlook.
Research indicates that these estimate revisions are directly correlated with near-term share price momentum. We developed the Zacks Rank to capitalize on this phenomenon. Our system takes these estimate changes into account and delivers a clear, actionable rating model.
Ranging from #1 (Strong Buy) to #5 (Strong Sell), the Zacks Rank system has a proven, outside-audited track record of outperformance, with #1 stocks returning an average of +25% annually since 1988. Within the past 30 days, our consensus EPS projection has moved 0.12% lower. KO is holding a Zacks Rank of #3 (Hold) right now.
In terms of valuation, KO is currently trading at a Forward P/E ratio of 23.25. Its industry sports an average Forward P/E of 21.64, so we one might conclude that KO is trading at a premium comparatively.
Investors should also note that KO has a PEG ratio of 5.54 right now. 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. Beverages - Soft drinks stocks are, on average, holding a PEG ratio of 3.73 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 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.
To follow KO in the coming trading sessions, be sure to utilize Zacks.com.
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Coca-Cola (KO) Outpaces Stock Market Gains: What You Should Know
Coca-Cola (KO - Free Report) closed the most recent trading day at $48.95, moving +0.55% from the previous trading session. This move outpaced the S&P 500's daily gain of 0.03%. Elsewhere, the Dow lost 0.04%, while the tech-heavy Nasdaq added 0.55%.
Coming into today, shares of the world's largest beverage maker had lost 8.29% in the past month. In that same time, the Consumer Staples sector lost 2.53%, while the S&P 500 gained 3.99%.
KO will be looking to display strength as it nears its next earnings release, which is expected to be February 10, 2021. The company is expected to report EPS of $0.41, down 6.82% from the prior-year quarter. Meanwhile, our latest consensus estimate is calling for revenue of $8.65 billion, down 4.64% from the prior-year quarter.
Any recent changes to analyst estimates for KO should also be noted by investors. These revisions typically reflect the latest short-term business trends, which can change frequently. With this in mind, we can consider positive estimate revisions a sign of optimism about the company's business outlook.
Research indicates that these estimate revisions are directly correlated with near-term share price momentum. We developed the Zacks Rank to capitalize on this phenomenon. Our system takes these estimate changes into account and delivers a clear, actionable rating model.
Ranging from #1 (Strong Buy) to #5 (Strong Sell), the Zacks Rank system has a proven, outside-audited track record of outperformance, with #1 stocks returning an average of +25% annually since 1988. Within the past 30 days, our consensus EPS projection has moved 0.12% lower. KO is holding a Zacks Rank of #3 (Hold) right now.
In terms of valuation, KO is currently trading at a Forward P/E ratio of 23.25. Its industry sports an average Forward P/E of 21.64, so we one might conclude that KO is trading at a premium comparatively.
Investors should also note that KO has a PEG ratio of 5.54 right now. 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. Beverages - Soft drinks stocks are, on average, holding a PEG ratio of 3.73 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 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.
To follow KO in the coming trading sessions, be sure to utilize Zacks.com.