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Coca-Cola (KO) Stock Sinks As Market Gains: What You Should Know

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Coca-Cola (KO - Free Report) closed the most recent trading day at $53.86, moving -0.74% from the previous trading session. This change lagged the S&P 500's 0.03% gain on the day.

Coming into today, shares of the world's largest beverage maker had lost 1.86% in the past month. In that same time, the Consumer Staples sector lost 0.65%, while the S&P 500 gained 2.12%.

Wall Street will be looking for positivity from KO as it approaches its next earnings report date. This is expected to be July 21, 2021. The company is expected to report EPS of $0.55, up 30.95% from the prior-year quarter. Meanwhile, our latest consensus estimate is calling for revenue of $9.4 billion, up 31.53% from the prior-year quarter.

KO's full-year Zacks Consensus Estimates are calling for earnings of $2.19 per share and revenue of $37.14 billion. These results would represent year-over-year changes of +12.31% and +12.51%, respectively.

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 such, positive estimate revisions reflect analyst optimism about the company's business and profitability.

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. The Zacks Consensus EPS estimate has moved 0.27% higher within the past month. KO currently has a Zacks Rank of #3 (Hold).

Digging into valuation, KO currently has a Forward P/E ratio of 24.79. This represents a premium compared to its industry's average Forward P/E of 22.54.

Meanwhile, KO's PEG ratio is currently 3.26. 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 2.49 based on yesterday's closing prices.

The Beverages - Soft drinks industry is part of the Consumer Staples sector. This group has a Zacks Industry Rank of 169, putting it in the bottom 34% 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.

Be sure to follow all of these stock-moving metrics, and many more, on Zacks.com.


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