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Bear Of The Day: Cott Corp (COT)

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Cott Corporation (COT - Free Report) is the Bear of the Day today because it is a Zacks Rank #5 (Strong Sell).  It became a Zacks Rank #5 (Strong Sell) because earnings estimates were falling and we will go over that later, but I also want to point out the oppressive tax that residents of Chicago face when they are buying a sweetened beverage.

Can you believe a city government pretends to care about your health in a way to make you pay for sweetened beverages at a rate of one cent per ounce?  That is 12 cents on a regular can of soda or $1.44 in taxes on a twelve pack.  Maybe the former "Top Cop" will repeal this tax when he runs for (and becomes) Mayor.  #GarryForMayor.

Not all of the problems that COT has seen come from Chicago taxes pushing potential consumers to other beverages to avoid an oppressive tax. Let's take a look at the reason why this stock is a Zacks Rank #5 (Strong Sell).


Cott Corporation is one of the world's largest non-alcoholic beverage companies and the world's largest retailer brand soft drink provider. The Company commercializes its business in over Sixty countries worldwide, with its principal markets being the United States, Canada, the United Kingdom and Mexico. Cott markets or supplies over two hundred retailer and licensed brands, and Company-owned brands including Cott, RC, Vintage, Vess and So Clear. Its products include carbonated soft drinks, sparkling and flavored waters, energy drinks, sports drinks, juices, juice drinks and smoothies, ready-to-drink teas, and other non-carbonated beverages.

Earnings History

There are two recent misses of the Zacks Consensus Estimate. The most recent miss was a negative 62% earnings surprise.  The previous miss was a 42% negative earnings surprise.

Earnings Estimates

The reason most stocks fall to a Zacks Rank #5 (Strong Sell) is that earnings estimates are falling.  This table can be found on the Zacks website under the detailed estimates page.

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