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Coca-Cola (KO) Outpaces Stock Market Gains: What You Should Know
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Coca-Cola (KO - Free Report) closed at $60.36 in the latest trading session, marking a +1.55% move from the prior day. This move outpaced the S&P 500's daily gain of 0.07%. At the same time, the Dow added 0.12%, and the tech-heavy Nasdaq lost 1.47%.
Heading into today, shares of the world's largest beverage maker had lost 0.65% over the past month, outpacing the Consumer Staples sector's loss of 0.66% and the S&P 500's loss of 2% in that time.
Wall Street will be looking for positivity from Coca-Cola as it approaches its next earnings report date. On that day, Coca-Cola is projected to report earnings of $0.64 per share, which would represent no growth from the year-ago period. Meanwhile, our latest consensus estimate is calling for revenue of $10.85 billion, up 3.39% from the prior-year quarter.
Looking at the full year, our Zacks Consensus Estimates suggest analysts are expecting earnings of $2.60 per share and revenue of $44.82 billion. These totals would mark changes of +4.84% and +4.21%, respectively, from last year.
It is also important to note the recent changes to analyst estimates for Coca-Cola. 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. 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. Over the past month, the Zacks Consensus EPS estimate has moved 1.92% higher. Coca-Cola is currently a Zacks Rank #2 (Buy).
Looking at its valuation, Coca-Cola is holding a Forward P/E ratio of 22.88. Its industry sports an average Forward P/E of 23.42, so we one might conclude that Coca-Cola is trading at a discount comparatively.
Investors should also note that KO has a PEG ratio of 3.44 right now. The PEG ratio is similar to the widely-used P/E ratio, but this metric also takes the company's expected earnings growth rate into account. The Beverages - Soft drinks industry currently had an average PEG ratio of 2.58 as of yesterday's close.
The Beverages - Soft drinks industry is part of the Consumer Staples sector. This group has a Zacks Industry Rank of 55, putting it in the top 22% 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.
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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Coca-Cola (KO) Outpaces Stock Market Gains: What You Should Know
Coca-Cola (KO - Free Report) closed at $60.36 in the latest trading session, marking a +1.55% move from the prior day. This move outpaced the S&P 500's daily gain of 0.07%. At the same time, the Dow added 0.12%, and the tech-heavy Nasdaq lost 1.47%.
Heading into today, shares of the world's largest beverage maker had lost 0.65% over the past month, outpacing the Consumer Staples sector's loss of 0.66% and the S&P 500's loss of 2% in that time.
Wall Street will be looking for positivity from Coca-Cola as it approaches its next earnings report date. On that day, Coca-Cola is projected to report earnings of $0.64 per share, which would represent no growth from the year-ago period. Meanwhile, our latest consensus estimate is calling for revenue of $10.85 billion, up 3.39% from the prior-year quarter.
Looking at the full year, our Zacks Consensus Estimates suggest analysts are expecting earnings of $2.60 per share and revenue of $44.82 billion. These totals would mark changes of +4.84% and +4.21%, respectively, from last year.
It is also important to note the recent changes to analyst estimates for Coca-Cola. 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. 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. Over the past month, the Zacks Consensus EPS estimate has moved 1.92% higher. Coca-Cola is currently a Zacks Rank #2 (Buy).
Looking at its valuation, Coca-Cola is holding a Forward P/E ratio of 22.88. Its industry sports an average Forward P/E of 23.42, so we one might conclude that Coca-Cola is trading at a discount comparatively.
Investors should also note that KO has a PEG ratio of 3.44 right now. The PEG ratio is similar to the widely-used P/E ratio, but this metric also takes the company's expected earnings growth rate into account. The Beverages - Soft drinks industry currently had an average PEG ratio of 2.58 as of yesterday's close.
The Beverages - Soft drinks industry is part of the Consumer Staples sector. This group has a Zacks Industry Rank of 55, putting it in the top 22% 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.
Make sure to utilize Zacks.com to follow all of these stock-moving metrics, and more, in the coming trading sessions.