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Here's Why Coca-Cola (KO) Fell More Than Broader Market
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Coca-Cola (KO - Free Report) ended the recent trading session at $60, demonstrating a -0.18% swing from the preceding day's closing price. This change lagged the S&P 500's 0.15% loss on the day. Elsewhere, the Dow lost 0.42%, while the tech-heavy Nasdaq added 0.09%.
Coming into today, shares of the world's largest beverage maker had gained 1.81% in the past month. In that same time, the Consumer Staples sector gained 7.22%, while the S&P 500 gained 3.5%.
The investment community will be paying close attention to the earnings performance of Coca-Cola in its upcoming release. The company is forecasted to report an EPS of $0.48, showcasing a 6.67% upward movement from the corresponding quarter of the prior year. Meanwhile, our latest consensus estimate is calling for revenue of $10.61 billion, up 4.78% from the prior-year quarter.
Investors should also pay attention to any latest changes in analyst estimates for Coca-Cola. Recent revisions tend to reflect the latest near-term business trends. Hence, positive alterations in estimates signify analyst optimism regarding the company's business and profitability.
Based on our research, we believe these estimate revisions are directly related to near-team stock moves. To benefit from this, we have developed the Zacks Rank, a proprietary model which takes these estimate changes into account and provides an 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 remained steady. Coca-Cola is currently a Zacks Rank #2 (Buy).
From a valuation perspective, Coca-Cola is currently exchanging hands at a Forward P/E ratio of 21.43. Its industry sports an average Forward P/E of 18.76, so one might conclude that Coca-Cola is trading at a premium comparatively.
Investors should also note that KO has a PEG ratio of 3.43 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. Beverages - Soft drinks stocks are, on average, holding a PEG ratio of 2.07 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 31, putting it in the top 13% of all 250+ industries.
The Zacks Industry Rank is ordered 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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Here's Why Coca-Cola (KO) Fell More Than Broader Market
Coca-Cola (KO - Free Report) ended the recent trading session at $60, demonstrating a -0.18% swing from the preceding day's closing price. This change lagged the S&P 500's 0.15% loss on the day. Elsewhere, the Dow lost 0.42%, while the tech-heavy Nasdaq added 0.09%.
Coming into today, shares of the world's largest beverage maker had gained 1.81% in the past month. In that same time, the Consumer Staples sector gained 7.22%, while the S&P 500 gained 3.5%.
The investment community will be paying close attention to the earnings performance of Coca-Cola in its upcoming release. The company is forecasted to report an EPS of $0.48, showcasing a 6.67% upward movement from the corresponding quarter of the prior year. Meanwhile, our latest consensus estimate is calling for revenue of $10.61 billion, up 4.78% from the prior-year quarter.
Investors should also pay attention to any latest changes in analyst estimates for Coca-Cola. Recent revisions tend to reflect the latest near-term business trends. Hence, positive alterations in estimates signify analyst optimism regarding the company's business and profitability.
Based on our research, we believe these estimate revisions are directly related to near-team stock moves. To benefit from this, we have developed the Zacks Rank, a proprietary model which takes these estimate changes into account and provides an 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 remained steady. Coca-Cola is currently a Zacks Rank #2 (Buy).
From a valuation perspective, Coca-Cola is currently exchanging hands at a Forward P/E ratio of 21.43. Its industry sports an average Forward P/E of 18.76, so one might conclude that Coca-Cola is trading at a premium comparatively.
Investors should also note that KO has a PEG ratio of 3.43 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. Beverages - Soft drinks stocks are, on average, holding a PEG ratio of 2.07 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 31, putting it in the top 13% of all 250+ industries.
The Zacks Industry Rank is ordered 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.