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Coca-Cola European (CCEP) Gains But Lags Market: What You Should Know
Coca-Cola European (CCEP - Free Report) closed at $56.78 in the latest trading session, marking a +0.26% move from the prior day. The stock lagged the S&P 500's daily gain of 0.56%. Meanwhile, the Dow gained 0.41%, and the Nasdaq, a tech-heavy index, added 1.35%.
Coming into today, shares of the seller of Coca-Cola drinks in Europe had gained 1.22% in the past month. In that same time, the Consumer Staples sector lost 1.86%, while the S&P 500 lost 1.48%.
Wall Street will be looking for positivity from Coca-Cola European as it approaches its next earnings report date.
For the full year, our Zacks Consensus Estimates are projecting earnings of $3.78 per share and revenue of $19.55 billion, which would represent changes of +5.88% and +20.07%, respectively, from the prior year.
It is also important to note the recent changes to analyst estimates for Coca-Cola European. Recent revisions tend to reflect the latest near-term business trends. As such, positive estimate revisions reflect analyst optimism about the company's business and profitability.
Research indicates that these estimate revisions are directly correlated with near-term share price momentum. 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.
Ranging from #1 (Strong Buy) to #5 (Strong Sell), the Zacks Rank system has a proven, outside-audited track record of outperformance, with #1 stocks returning an average of +25% annually since 1988. The Zacks Consensus EPS estimate has moved 0.33% lower within the past month. Coca-Cola European is holding a Zacks Rank of #4 (Sell) right now.
Digging into valuation, Coca-Cola European currently has a Forward P/E ratio of 15. Its industry sports an average Forward P/E of 23.06, so we one might conclude that Coca-Cola European is trading at a discount comparatively.
Investors should also note that CCEP has a PEG ratio of 2.29 right now. 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. CCEP's industry had an average PEG ratio of 2.86 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 86, putting it in the top 35% of all 250+ industries.
The Zacks Industry Rank gauges the strength of our individual 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.
You can find more information on all of these metrics, and much more, on Zacks.com.