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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 $50.71 in the latest trading session, marking a +0.34% move from the prior day. This move lagged the S&P 500's daily gain of 1.14%. Meanwhile, the Dow gained 1.35%, and the Nasdaq, a tech-heavy index, added 0.99%.
Prior to today's trading, shares of the world's largest beverage maker had gained 3.79% over the past month. This has outpaced the Consumer Staples sector's gain of 1.52% and the S&P 500's gain of 1.2% in that time.
KO will be looking to display strength as it nears its next earnings release. On that day, KO is projected to report earnings of $0.50 per share, which would represent a year-over-year decline of 1.96%. Our most recent consensus estimate is calling for quarterly revenue of $8.52 billion, down 0.92% from the year-ago period.
For the full year, our Zacks Consensus Estimates are projecting earnings of $2.12 per share and revenue of $36.73 billion, which would represent changes of +8.72% and +11.26%, respectively, from the prior year.
Investors might also notice recent changes to analyst estimates for KO. Recent revisions tend to reflect the latest near-term business trends. With this in mind, we can consider positive estimate revisions a sign of optimism about the company's business outlook.
Based on our research, we believe these estimate revisions are directly related to near-team stock moves. 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.
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 1.56% higher within the past month. KO is currently sporting a Zacks Rank of #3 (Hold).
In terms of valuation, KO is currently trading at a Forward P/E ratio of 23.92. Its industry sports an average Forward P/E of 20.86, so we one might conclude that KO is trading at a premium comparatively.
Meanwhile, KO's PEG ratio is currently 4.43. 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 2.83 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 160, which puts it in the bottom 38% 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 $50.71 in the latest trading session, marking a +0.34% move from the prior day. This move lagged the S&P 500's daily gain of 1.14%. Meanwhile, the Dow gained 1.35%, and the Nasdaq, a tech-heavy index, added 0.99%.
Prior to today's trading, shares of the world's largest beverage maker had gained 3.79% over the past month. This has outpaced the Consumer Staples sector's gain of 1.52% and the S&P 500's gain of 1.2% in that time.
KO will be looking to display strength as it nears its next earnings release. On that day, KO is projected to report earnings of $0.50 per share, which would represent a year-over-year decline of 1.96%. Our most recent consensus estimate is calling for quarterly revenue of $8.52 billion, down 0.92% from the year-ago period.
For the full year, our Zacks Consensus Estimates are projecting earnings of $2.12 per share and revenue of $36.73 billion, which would represent changes of +8.72% and +11.26%, respectively, from the prior year.
Investors might also notice recent changes to analyst estimates for KO. Recent revisions tend to reflect the latest near-term business trends. With this in mind, we can consider positive estimate revisions a sign of optimism about the company's business outlook.
Based on our research, we believe these estimate revisions are directly related to near-team stock moves. 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.
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 1.56% higher within the past month. KO is currently sporting a Zacks Rank of #3 (Hold).
In terms of valuation, KO is currently trading at a Forward P/E ratio of 23.92. Its industry sports an average Forward P/E of 20.86, so we one might conclude that KO is trading at a premium comparatively.
Meanwhile, KO's PEG ratio is currently 4.43. 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 2.83 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 160, which puts it in the bottom 38% 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.