Back to top

Image: Bigstock

Coca-Cola (KO) Dips More Than Broader Markets: What You Should Know

Read MoreHide Full Article

In the latest trading session, Coca-Cola (KO - Free Report) closed at $49.53, marking a -0.6% move from the previous day. This change lagged the S&P 500's 0.22% loss on the day. Elsewhere, the Dow lost 0.78%, while the tech-heavy Nasdaq added 0.68%.

Prior to today's trading, shares of the world's largest beverage maker had gained 4.49% over the past month. This has outpaced the Consumer Staples sector's gain of 3.46% and lagged the S&P 500's gain of 9.15% in that time.

Investors will be hoping for strength from KO as it approaches its next earnings release. On that day, KO is projected to report earnings of $0.45 per share, which would represent a year-over-year decline of 19.64%. Our most recent consensus estimate is calling for quarterly revenue of $8.36 billion, down 12.07% from the year-ago period.

Looking at the full year, our Zacks Consensus Estimates suggest analysts are expecting earnings of $1.80 per share and revenue of $32.98 billion. These totals would mark changes of -14.69% and -9.86%, respectively, from last year.

Investors might also notice recent changes to analyst estimates for KO. Recent revisions tend to reflect the latest near-term business trends. As a result, we can interpret positive estimate revisions as a good sign for the company's business outlook.

Based on our research, we believe these estimate revisions are directly related to near-team stock moves. To benefit from this, we have developed the Zacks Rank, a proprietary model which takes these estimate changes into account and provides an 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. Over the past month, the Zacks Consensus EPS estimate has moved 0.07% lower. KO is holding a Zacks Rank of #3 (Hold) right now.

Investors should also note KO's current valuation metrics, including its Forward P/E ratio of 27.72. This valuation marks a premium compared to its industry's average Forward P/E of 23.01.

Meanwhile, KO's PEG ratio is currently 5.76. 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 Beverages - Soft drinks industry currently had an average PEG ratio of 4.67 as of yesterday's close.

The Beverages - Soft drinks industry is part of the Consumer Staples sector. This industry currently has a Zacks Industry Rank of 117, which puts it in the top 47% 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.

Make sure to utilize Zacks. Com to follow all of these stock-moving metrics, and more, in the coming trading sessions.


In-Depth Zacks Research for the Tickers Above


Normally $25 each - click below to receive one report FREE:


CocaCola Company The (KO) - free report >>

Published in