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Coca-Cola (KO) Gains But Lags Market: What You Should Know
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In the latest trading session, Coca-Cola (KO - Free Report) closed at $55.69, marking a +1.29% move from the previous day. The stock lagged the S&P 500's daily gain of 2.65%. At the same time, the Dow added 1.86%, and the tech-heavy Nasdaq gained 0.24%.
Heading into today, shares of the world's largest beverage maker had lost 7.66% over the past month, lagging the Consumer Staples sector's loss of 6.4% and outpacing the S&P 500's loss of 8.99% in that time.
Coca-Cola will be looking to display strength as it nears its next earnings release, which is expected to be October 25, 2022. On that day, Coca-Cola is projected to report earnings of $0.64 per share, which would represent a year-over-year decline of 1.54%. Our most recent consensus estimate is calling for quarterly revenue of $10.59 billion, up 5.5% from the year-ago period.
KO's full-year Zacks Consensus Estimates are calling for earnings of $2.46 per share and revenue of $42.29 billion. These results would represent year-over-year changes of +6.03% and +9.41%, respectively.
It is also important to note the recent changes to analyst estimates for Coca-Cola. These recent revisions tend to reflect the evolving nature of short-term business trends. As such, positive estimate revisions reflect analyst optimism about the company's business and profitability.
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 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. The Zacks Consensus EPS estimate has moved 0.22% lower within the past month. Coca-Cola is currently sporting a Zacks Rank of #3 (Hold).
Digging into valuation, Coca-Cola currently has a Forward P/E ratio of 22.36. For comparison, its industry has an average Forward P/E of 22.36, which means Coca-Cola is trading at a no noticeable deviation to the group.
Also, we should mention that KO has a PEG ratio of 3.92. 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. KO's industry had an average PEG ratio of 3.15 as of yesterday's close.
The Beverages - Soft drinks industry is part of the Consumer Staples sector. This group has a Zacks Industry Rank of 177, putting it in the bottom 30% 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.
You can find more information on all of these metrics, and much more, on Zacks.com.
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Coca-Cola (KO) Gains But Lags Market: What You Should Know
In the latest trading session, Coca-Cola (KO - Free Report) closed at $55.69, marking a +1.29% move from the previous day. The stock lagged the S&P 500's daily gain of 2.65%. At the same time, the Dow added 1.86%, and the tech-heavy Nasdaq gained 0.24%.
Heading into today, shares of the world's largest beverage maker had lost 7.66% over the past month, lagging the Consumer Staples sector's loss of 6.4% and outpacing the S&P 500's loss of 8.99% in that time.
Coca-Cola will be looking to display strength as it nears its next earnings release, which is expected to be October 25, 2022. On that day, Coca-Cola is projected to report earnings of $0.64 per share, which would represent a year-over-year decline of 1.54%. Our most recent consensus estimate is calling for quarterly revenue of $10.59 billion, up 5.5% from the year-ago period.
KO's full-year Zacks Consensus Estimates are calling for earnings of $2.46 per share and revenue of $42.29 billion. These results would represent year-over-year changes of +6.03% and +9.41%, respectively.
It is also important to note the recent changes to analyst estimates for Coca-Cola. These recent revisions tend to reflect the evolving nature of short-term business trends. As such, positive estimate revisions reflect analyst optimism about the company's business and profitability.
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 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. The Zacks Consensus EPS estimate has moved 0.22% lower within the past month. Coca-Cola is currently sporting a Zacks Rank of #3 (Hold).
Digging into valuation, Coca-Cola currently has a Forward P/E ratio of 22.36. For comparison, its industry has an average Forward P/E of 22.36, which means Coca-Cola is trading at a no noticeable deviation to the group.
Also, we should mention that KO has a PEG ratio of 3.92. 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. KO's industry had an average PEG ratio of 3.15 as of yesterday's close.
The Beverages - Soft drinks industry is part of the Consumer Staples sector. This group has a Zacks Industry Rank of 177, putting it in the bottom 30% 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.
You can find more information on all of these metrics, and much more, on Zacks.com.