We use cookies to understand how you use our site and to improve your experience. This includes personalizing content and advertising. To learn more, click here. By continuing to use our site, you accept our use of cookies, revised Privacy Policy and Terms of Service.
You are being directed to ZacksTrade, a division of LBMZ Securities and licensed broker-dealer. ZacksTrade and Zacks.com are separate companies. The web link between the two companies is not a solicitation or offer to invest in a particular security or type of security. ZacksTrade does not endorse or adopt any particular investment strategy, any analyst opinion/rating/report or any approach to evaluating individual securities.
If you wish to go to ZacksTrade, click OK. If you do not, click Cancel.
Coca-Cola (KO) Gains But Lags Market: What You Should Know
Read MoreHide Full Article
Coca-Cola (KO - Free Report) closed the most recent trading day at $53.18, moving +0.11% from the previous trading session. This change lagged the S&P 500's 0.77% gain on the day.
Heading into today, shares of the world's largest beverage maker had gained 3.58% over the past month, lagging the Consumer Staples sector's gain of 5.89% and the S&P 500's gain of 7.34% in that time.
Investors will be hoping for strength from KO as it approaches its next earnings release, which is expected to be April 19, 2021. 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.
KO's full-year Zacks Consensus Estimates are calling for earnings of $2.12 per share and revenue of $36.73 billion. These results would represent year-over-year changes of +8.72% and +11.26%, respectively.
It is also important to note the recent changes to analyst estimates for KO. These revisions typically reflect the latest short-term business trends, which can change frequently. 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. The Zacks Consensus EPS estimate has moved 0.04% higher within the past month. KO is holding a Zacks Rank of #3 (Hold) right now.
In terms of valuation, KO is currently trading at a Forward P/E ratio of 25.18. This represents a premium compared to its industry's average Forward P/E of 22.89.
Meanwhile, KO's PEG ratio is currently 4.66. 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. Beverages - Soft drinks stocks are, on average, holding a PEG ratio of 2.85 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 88, which puts it in the top 35% of all 250+ industries.
The Zacks Industry Rank gauges the strength of our industry groups by measuring the average Zacks Rank of the individual stocks within the groups. 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.
See More Zacks Research for These Tickers
Normally $25 each - click below to receive one report FREE:
Image: Bigstock
Coca-Cola (KO) Gains But Lags Market: What You Should Know
Coca-Cola (KO - Free Report) closed the most recent trading day at $53.18, moving +0.11% from the previous trading session. This change lagged the S&P 500's 0.77% gain on the day.
Heading into today, shares of the world's largest beverage maker had gained 3.58% over the past month, lagging the Consumer Staples sector's gain of 5.89% and the S&P 500's gain of 7.34% in that time.
Investors will be hoping for strength from KO as it approaches its next earnings release, which is expected to be April 19, 2021. 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.
KO's full-year Zacks Consensus Estimates are calling for earnings of $2.12 per share and revenue of $36.73 billion. These results would represent year-over-year changes of +8.72% and +11.26%, respectively.
It is also important to note the recent changes to analyst estimates for KO. These revisions typically reflect the latest short-term business trends, which can change frequently. 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. The Zacks Consensus EPS estimate has moved 0.04% higher within the past month. KO is holding a Zacks Rank of #3 (Hold) right now.
In terms of valuation, KO is currently trading at a Forward P/E ratio of 25.18. This represents a premium compared to its industry's average Forward P/E of 22.89.
Meanwhile, KO's PEG ratio is currently 4.66. 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. Beverages - Soft drinks stocks are, on average, holding a PEG ratio of 2.85 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 88, which puts it in the top 35% of all 250+ industries.
The Zacks Industry Rank gauges the strength of our industry groups by measuring the average Zacks Rank of the individual stocks within the groups. 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.