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Coca-Cola (KO) Stock Moves -0.11%: What You Should Know

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In the latest trading session, Coca-Cola (KO - Free Report) closed at $61.34, marking a -0.11% move from the previous day. This change was narrower than the S&P 500's 3.88% loss on the day. Elsewhere, the Dow lost 2.79%, while the tech-heavy Nasdaq lost 0.66%.

Coming into today, shares of the world's largest beverage maker had lost 6.56% in the past month. In that same time, the Consumer Staples sector lost 2.66%, while the S&P 500 lost 2.32%.

Coca-Cola will be looking to display strength as it nears its next earnings release. The company is expected to report EPS of $0.68, unchanged from the prior-year quarter. Meanwhile, our latest consensus estimate is calling for revenue of $10.83 billion, up 6.92% from the prior-year quarter.

KO's full-year Zacks Consensus Estimates are calling for earnings of $2.47 per share and revenue of $42.11 billion. These results would represent year-over-year changes of +6.47% and +8.94%, respectively.

Any recent changes to analyst estimates for Coca-Cola should also be noted by investors. Recent revisions tend to reflect the latest 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. Investors can capitalize on this by using the Zacks Rank. This model considers these estimate changes and provides a simple, actionable rating system.

The Zacks Rank system, which ranges from #1 (Strong Buy) to #5 (Strong Sell), has an impressive outside-audited track record of outperformance, with #1 stocks generating an average annual return of +25% since 1988. The Zacks Consensus EPS estimate remained stagnant within the past month. Coca-Cola is currently a Zacks Rank #3 (Hold).

Valuation is also important, so investors should note that Coca-Cola has a Forward P/E ratio of 24.91 right now. This represents a premium compared to its industry's average Forward P/E of 20.98.

It is also worth noting that KO currently has a PEG ratio of 3.57. 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 2.77 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 147, putting it in the bottom 42% 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.

Make sure to utilize Zacks.com to follow all of these stock-moving metrics, and more, in the coming trading sessions.


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