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Coca-Cola (KO) Increases Yet Falls Behind Market: What Investors Need to Know
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Coca-Cola (KO - Free Report) closed the latest trading day at $59.73, indicating a +0.61% change from the previous session's end. This change lagged the S&P 500's 0.76% gain on the day. On the other hand, the Dow registered a gain of 0.59%, and the technology-centric Nasdaq increased by 1.12%.
Heading into today, shares of the world's largest beverage maker had gained 0.75% over the past month, lagging the Consumer Staples sector's gain of 4.52% and the S&P 500's gain of 2.5% in that time.
Market participants will be closely following the financial results of Coca-Cola in its upcoming release. The company plans to announce its earnings on February 13, 2024. The company is expected to report EPS of $0.48, up 6.67% from the prior-year quarter. Simultaneously, our latest consensus estimate expects the revenue to be $10.61 billion, showing a 4.78% escalation compared to the year-ago quarter.
Investors should also pay attention to any latest changes in analyst estimates for Coca-Cola. Such recent modifications usually signify the changing landscape of near-term business trends. As a result, we can interpret positive estimate revisions as a good sign for the company's business outlook.
Empirical research indicates that these revisions in estimates have a direct correlation with impending stock price performance. 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 varies between #1 (Strong Buy) and #5 (Strong Sell), carries an impressive track record of exceeding expectations, confirmed by external audits, with stocks at #1 delivering an average annual return of +25% since 1988. Over the last 30 days, the Zacks Consensus EPS estimate has witnessed an unchanged state. Coca-Cola currently has a Zacks Rank of #2 (Buy).
In terms of valuation, Coca-Cola is currently trading at a Forward P/E ratio of 21.17. This expresses a premium compared to the average Forward P/E of 18.73 of its industry.
Also, we should mention that KO has a PEG ratio of 3.39. The PEG ratio bears resemblance to the frequently used P/E ratio, but this parameter also includes the company's expected earnings growth trajectory. The Beverages - Soft drinks was holding an average PEG ratio of 2.25 at yesterday's closing price.
The Beverages - Soft drinks industry is part of the Consumer Staples sector. This industry, currently bearing a Zacks Industry Rank of 84, finds itself in the top 34% echelons of all 250+ industries.
The strength of our individual industry groups is measured by the Zacks Industry Rank, which is calculated based on the average Zacks Rank of the individual stocks within these 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) Increases Yet Falls Behind Market: What Investors Need to Know
Coca-Cola (KO - Free Report) closed the latest trading day at $59.73, indicating a +0.61% change from the previous session's end. This change lagged the S&P 500's 0.76% gain on the day. On the other hand, the Dow registered a gain of 0.59%, and the technology-centric Nasdaq increased by 1.12%.
Heading into today, shares of the world's largest beverage maker had gained 0.75% over the past month, lagging the Consumer Staples sector's gain of 4.52% and the S&P 500's gain of 2.5% in that time.
Market participants will be closely following the financial results of Coca-Cola in its upcoming release. The company plans to announce its earnings on February 13, 2024. The company is expected to report EPS of $0.48, up 6.67% from the prior-year quarter. Simultaneously, our latest consensus estimate expects the revenue to be $10.61 billion, showing a 4.78% escalation compared to the year-ago quarter.
Investors should also pay attention to any latest changes in analyst estimates for Coca-Cola. Such recent modifications usually signify the changing landscape of near-term business trends. As a result, we can interpret positive estimate revisions as a good sign for the company's business outlook.
Empirical research indicates that these revisions in estimates have a direct correlation with impending stock price performance. 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 varies between #1 (Strong Buy) and #5 (Strong Sell), carries an impressive track record of exceeding expectations, confirmed by external audits, with stocks at #1 delivering an average annual return of +25% since 1988. Over the last 30 days, the Zacks Consensus EPS estimate has witnessed an unchanged state. Coca-Cola currently has a Zacks Rank of #2 (Buy).
In terms of valuation, Coca-Cola is currently trading at a Forward P/E ratio of 21.17. This expresses a premium compared to the average Forward P/E of 18.73 of its industry.
Also, we should mention that KO has a PEG ratio of 3.39. The PEG ratio bears resemblance to the frequently used P/E ratio, but this parameter also includes the company's expected earnings growth trajectory. The Beverages - Soft drinks was holding an average PEG ratio of 2.25 at yesterday's closing price.
The Beverages - Soft drinks industry is part of the Consumer Staples sector. This industry, currently bearing a Zacks Industry Rank of 84, finds itself in the top 34% echelons of all 250+ industries.
The strength of our individual industry groups is measured by the Zacks Industry Rank, which is calculated based on the average Zacks Rank of the individual stocks within these 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.