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Coca-Cola (KO) Gains As Market Dips: What You Should Know
Coca-Cola (KO - Free Report) closed the most recent trading day at $60.93, moving +0.63% from the previous trading session. This move outpaced the S&P 500's daily loss of 0.02%. At the same time, the Dow added 0.03%, and the tech-heavy Nasdaq gained 5.44%.
Heading into today, shares of the world's largest beverage maker had lost 5.7% over the past month, lagging the Consumer Staples sector's loss of 1.82% and the S&P 500's gain of 4.57% in that time.
Investors will be hoping for strength from Coca-Cola as it approaches its next earnings release, which is expected to be February 14, 2023. The company is expected to report EPS of $0.45, unchanged from the prior-year quarter. Our most recent consensus estimate is calling for quarterly revenue of $9.97 billion, up 5.3% from the year-ago period.
It is also important to note the recent changes to analyst estimates for Coca-Cola. 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. 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. Within the past 30 days, our consensus EPS projection has moved 0.83% higher. Coca-Cola currently has a Zacks Rank of #2 (Buy).
In terms of valuation, Coca-Cola is currently trading at a Forward P/E ratio of 23.75. Its industry sports an average Forward P/E of 23.64, so we one might conclude that Coca-Cola is trading at a premium comparatively.
Also, we should mention that KO has a PEG ratio of 3.82. 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. 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 28, putting it in the top 12% 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.