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Coca-Cola (KO) Gains As Market Dips: What You Should Know
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Coca-Cola (KO - Free Report) closed at $59.81 in the latest trading session, marking a +1.01% move from the prior day. This move outpaced the S&P 500's daily loss of 0.15%. Elsewhere, the Dow lost 0.28%, while the tech-heavy Nasdaq added 3.16%.
Coming into today, shares of the world's largest beverage maker had lost 0.69% in the past month. In that same time, the Consumer Staples sector lost 1.77%, while the S&P 500 lost 5.39%.
Coca-Cola will be looking to display strength as it nears its next earnings release. In that report, analysts expect Coca-Cola to post earnings of $0.64 per share. This would mark no growth from the prior-year quarter. Meanwhile, the Zacks Consensus Estimate for revenue is projecting net sales of $10.85 billion, up 3.39% from the year-ago period.
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.
Investors might also notice 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.
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, 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. Within the past 30 days, our consensus EPS projection has moved 1.6% higher. Coca-Cola currently has a Zacks Rank of #2 (Buy).
Digging into valuation, Coca-Cola currently has a Forward P/E ratio of 22.79. Its industry sports an average Forward P/E of 23.3, so we one might conclude that Coca-Cola is trading at a discount comparatively.
It is also worth noting that KO currently has a PEG ratio of 3.42. 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 was holding an average PEG ratio of 2.54 at yesterday's closing price.
The Beverages - Soft drinks industry is part of the Consumer Staples sector. This industry currently has a Zacks Industry Rank of 50, which puts it in the top 20% 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.
To follow KO in the coming trading sessions, be sure to utilize Zacks.com.
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Coca-Cola (KO) Gains As Market Dips: What You Should Know
Coca-Cola (KO - Free Report) closed at $59.81 in the latest trading session, marking a +1.01% move from the prior day. This move outpaced the S&P 500's daily loss of 0.15%. Elsewhere, the Dow lost 0.28%, while the tech-heavy Nasdaq added 3.16%.
Coming into today, shares of the world's largest beverage maker had lost 0.69% in the past month. In that same time, the Consumer Staples sector lost 1.77%, while the S&P 500 lost 5.39%.
Coca-Cola will be looking to display strength as it nears its next earnings release. In that report, analysts expect Coca-Cola to post earnings of $0.64 per share. This would mark no growth from the prior-year quarter. Meanwhile, the Zacks Consensus Estimate for revenue is projecting net sales of $10.85 billion, up 3.39% from the year-ago period.
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.
Investors might also notice 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.
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, 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. Within the past 30 days, our consensus EPS projection has moved 1.6% higher. Coca-Cola currently has a Zacks Rank of #2 (Buy).
Digging into valuation, Coca-Cola currently has a Forward P/E ratio of 22.79. Its industry sports an average Forward P/E of 23.3, so we one might conclude that Coca-Cola is trading at a discount comparatively.
It is also worth noting that KO currently has a PEG ratio of 3.42. 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 was holding an average PEG ratio of 2.54 at yesterday's closing price.
The Beverages - Soft drinks industry is part of the Consumer Staples sector. This industry currently has a Zacks Industry Rank of 50, which puts it in the top 20% 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.
To follow KO in the coming trading sessions, be sure to utilize Zacks.com.