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Coca-Cola (KO) Gains But Lags Market: What You Should Know
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Coca-Cola (KO - Free Report) closed at $48.96 in the latest trading session, marking a +0.99% move from the prior day. This move lagged the S&P 500's daily gain of 1.39%. At the same time, the Dow added 1.57%, and the tech-heavy Nasdaq gained 1.56%.
Investors will be hoping for strength from KO as it approaches 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, the Zacks Consensus Estimate for revenue is projecting net sales of $8.74 billion, down 3.57% from the year-ago period.
Any recent changes to analyst estimates for KO should also be noted by investors. These recent revisions tend to reflect the evolving nature of short-term business trends. With this in mind, we can consider positive estimate revisions a sign of optimism about the company's business outlook.
Our research shows that these estimate changes are directly correlated with near-term stock prices. 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.
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. Over the past month, the Zacks Consensus EPS estimate has moved 0.36% lower. KO is currently a Zacks Rank #3 (Hold).
Looking at its valuation, KO is holding a Forward P/E ratio of 23.09. This represents a premium compared to its industry's average Forward P/E of 21.26.
Meanwhile, KO's PEG ratio is currently 2.03. 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 was holding an average PEG ratio of 2.76 at yesterday's closing price.
The Beverages - Soft drinks industry is part of the Consumer Staples sector. This industry currently has a Zacks Industry Rank of 180, which puts 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.
To follow KO in the coming trading sessions, be sure to utilize Zacks.com.
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Coca-Cola (KO) Gains But Lags Market: What You Should Know
Coca-Cola (KO - Free Report) closed at $48.96 in the latest trading session, marking a +0.99% move from the prior day. This move lagged the S&P 500's daily gain of 1.39%. At the same time, the Dow added 1.57%, and the tech-heavy Nasdaq gained 1.56%.
Investors will be hoping for strength from KO as it approaches 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, the Zacks Consensus Estimate for revenue is projecting net sales of $8.74 billion, down 3.57% from the year-ago period.
Any recent changes to analyst estimates for KO should also be noted by investors. These recent revisions tend to reflect the evolving nature of short-term business trends. With this in mind, we can consider positive estimate revisions a sign of optimism about the company's business outlook.
Our research shows that these estimate changes are directly correlated with near-term stock prices. 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.
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. Over the past month, the Zacks Consensus EPS estimate has moved 0.36% lower. KO is currently a Zacks Rank #3 (Hold).
Looking at its valuation, KO is holding a Forward P/E ratio of 23.09. This represents a premium compared to its industry's average Forward P/E of 21.26.
Meanwhile, KO's PEG ratio is currently 2.03. 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 was holding an average PEG ratio of 2.76 at yesterday's closing price.
The Beverages - Soft drinks industry is part of the Consumer Staples sector. This industry currently has a Zacks Industry Rank of 180, which puts 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.
To follow KO in the coming trading sessions, be sure to utilize Zacks.com.