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Coca-Cola (KO) Suffers a Larger Drop Than the General Market: Key Insights
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In the latest trading session, Coca-Cola (KO - Free Report) closed at $59.99, marking a -0.66% move from the previous day. The stock's change was less than the S&P 500's daily loss of 0.37%. Meanwhile, the Dow experienced a drop of 0.62%, and the technology-dominated Nasdaq saw a decrease of 0.19%.
The world's largest beverage maker's shares have seen an increase of 2.32% over the last month, not keeping up with the Consumer Staples sector's gain of 6.39% and outstripping the S&P 500's gain of 1.56%.
The upcoming earnings release of Coca-Cola will be of great interest to investors. The company's earnings report is expected on February 13, 2024. On that day, Coca-Cola is projected to report earnings of $0.48 per share, which would represent year-over-year growth of 6.67%. Alongside, our most recent consensus estimate is anticipating revenue of $10.61 billion, indicating a 4.78% upward movement from the same quarter last year.
Any recent changes to analyst estimates for Coca-Cola should also be noted by investors. Such recent modifications usually signify the changing landscape of near-term business trends. Hence, positive alterations in estimates signify analyst optimism regarding the company's business and profitability.
Empirical research indicates that these revisions in estimates have a direct correlation with impending stock price performance. 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. Over the last 30 days, the Zacks Consensus EPS estimate has witnessed an unchanged state. Right now, Coca-Cola possesses a Zacks Rank of #2 (Buy).
From a valuation perspective, Coca-Cola is currently exchanging hands at a Forward P/E ratio of 21.53. This expresses a premium compared to the average Forward P/E of 18.67 of its industry.
It's also important to note that KO currently trades at a PEG ratio of 3.45. The PEG ratio bears resemblance to the frequently used P/E ratio, but this parameter also includes the company's expected earnings growth trajectory. Beverages - Soft drinks stocks are, on average, holding a PEG ratio of 2.01 based on yesterday's closing prices.
The Beverages - Soft drinks industry is part of the Consumer Staples sector. Currently, this industry holds a Zacks Industry Rank of 33, positioning it in the top 14% of all 250+ industries.
The Zacks Industry Rank evaluates the power of our distinct industry groups by determining the average Zacks Rank of the individual stocks forming 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.
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Coca-Cola (KO) Suffers a Larger Drop Than the General Market: Key Insights
In the latest trading session, Coca-Cola (KO - Free Report) closed at $59.99, marking a -0.66% move from the previous day. The stock's change was less than the S&P 500's daily loss of 0.37%. Meanwhile, the Dow experienced a drop of 0.62%, and the technology-dominated Nasdaq saw a decrease of 0.19%.
The world's largest beverage maker's shares have seen an increase of 2.32% over the last month, not keeping up with the Consumer Staples sector's gain of 6.39% and outstripping the S&P 500's gain of 1.56%.
The upcoming earnings release of Coca-Cola will be of great interest to investors. The company's earnings report is expected on February 13, 2024. On that day, Coca-Cola is projected to report earnings of $0.48 per share, which would represent year-over-year growth of 6.67%. Alongside, our most recent consensus estimate is anticipating revenue of $10.61 billion, indicating a 4.78% upward movement from the same quarter last year.
Any recent changes to analyst estimates for Coca-Cola should also be noted by investors. Such recent modifications usually signify the changing landscape of near-term business trends. Hence, positive alterations in estimates signify analyst optimism regarding the company's business and profitability.
Empirical research indicates that these revisions in estimates have a direct correlation with impending stock price performance. 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. Over the last 30 days, the Zacks Consensus EPS estimate has witnessed an unchanged state. Right now, Coca-Cola possesses a Zacks Rank of #2 (Buy).
From a valuation perspective, Coca-Cola is currently exchanging hands at a Forward P/E ratio of 21.53. This expresses a premium compared to the average Forward P/E of 18.67 of its industry.
It's also important to note that KO currently trades at a PEG ratio of 3.45. The PEG ratio bears resemblance to the frequently used P/E ratio, but this parameter also includes the company's expected earnings growth trajectory. Beverages - Soft drinks stocks are, on average, holding a PEG ratio of 2.01 based on yesterday's closing prices.
The Beverages - Soft drinks industry is part of the Consumer Staples sector. Currently, this industry holds a Zacks Industry Rank of 33, positioning it in the top 14% of all 250+ industries.
The Zacks Industry Rank evaluates the power of our distinct industry groups by determining the average Zacks Rank of the individual stocks forming 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.