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 $54.36, moving +1.1% from the previous trading session. This move lagged the S&P 500's daily gain of 1.4%.
Heading into today, shares of the world's largest beverage maker had lost 1.56% over the past month, lagging the Consumer Staples sector's loss of 1.43% and the S&P 500's gain of 1.07% 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 $0.55 per share, which would represent year-over-year growth of 30.95%. Meanwhile, our latest consensus estimate is calling for revenue of $9.4 billion, up 31.53% from the prior-year quarter.
For the full year, our Zacks Consensus Estimates are projecting earnings of $2.19 per share and revenue of $37.14 billion, which would represent changes of +12.31% and +12.51%, respectively, from the prior year.
Investors might also notice recent changes to analyst estimates for KO. These revisions help to show the ever-changing nature of near-term business trends. As a result, we can interpret positive estimate revisions as a good sign for the company's business outlook.
Our research shows that these estimate changes are directly correlated with near-term stock prices. 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.
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 0.27% higher. KO is currently sporting a Zacks Rank of #3 (Hold).
Investors should also note KO's current valuation metrics, including its Forward P/E ratio of 24.57. Its industry sports an average Forward P/E of 22.47, so we one might conclude that KO is trading at a premium comparatively.
It is also worth noting that KO currently has a PEG ratio of 3.23. This metric is used similarly to the famous P/E ratio, but the PEG ratio also takes into account the stock's expected earnings growth rate. KO's industry had an average PEG ratio of 2.47 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 175, which puts it in the bottom 32% 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.
You can find more information on all of these metrics, and much more, on 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 $54.36, moving +1.1% from the previous trading session. This move lagged the S&P 500's daily gain of 1.4%.
Heading into today, shares of the world's largest beverage maker had lost 1.56% over the past month, lagging the Consumer Staples sector's loss of 1.43% and the S&P 500's gain of 1.07% 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 $0.55 per share, which would represent year-over-year growth of 30.95%. Meanwhile, our latest consensus estimate is calling for revenue of $9.4 billion, up 31.53% from the prior-year quarter.
For the full year, our Zacks Consensus Estimates are projecting earnings of $2.19 per share and revenue of $37.14 billion, which would represent changes of +12.31% and +12.51%, respectively, from the prior year.
Investors might also notice recent changes to analyst estimates for KO. These revisions help to show the ever-changing nature of near-term business trends. As a result, we can interpret positive estimate revisions as a good sign for the company's business outlook.
Our research shows that these estimate changes are directly correlated with near-term stock prices. 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.
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 0.27% higher. KO is currently sporting a Zacks Rank of #3 (Hold).
Investors should also note KO's current valuation metrics, including its Forward P/E ratio of 24.57. Its industry sports an average Forward P/E of 22.47, so we one might conclude that KO is trading at a premium comparatively.
It is also worth noting that KO currently has a PEG ratio of 3.23. This metric is used similarly to the famous P/E ratio, but the PEG ratio also takes into account the stock's expected earnings growth rate. KO's industry had an average PEG ratio of 2.47 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 175, which puts it in the bottom 32% 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.
You can find more information on all of these metrics, and much more, on Zacks.com.