Back to top

Image: Bigstock

Coty (COTY) Beats Stock Market Upswing: What Investors Need to Know

Read MoreHide Full Article

Coty (COTY - Free Report) closed at $12.24 in the latest trading session, marking a +1.32% move from the prior day. The stock outperformed the S&P 500, which registered a daily gain of 1.25%. On the other hand, the Dow registered a gain of 0.97%, and the technology-centric Nasdaq increased by 1.3%.

Shares of the beauty products company witnessed a gain of 4.59% over the previous month, beating the performance of the Consumer Staples sector with its gain of 4.02% and the S&P 500's gain of 1.58%.

The investment community will be closely monitoring the performance of Coty in its forthcoming earnings report. The company is scheduled to release its earnings on February 7, 2024. The company is forecasted to report an EPS of $0.20, showcasing a 9.09% downward movement from the corresponding quarter of the prior year. At the same time, our most recent consensus estimate is projecting a revenue of $1.67 billion, reflecting a 9.64% rise from the equivalent quarter last year.

For the entire fiscal year, the Zacks Consensus Estimates are projecting earnings of $0.40 per share and a revenue of $6.11 billion, representing changes of -24.53% and +9.97%, respectively, from the prior year.

Additionally, investors should keep an eye on any recent revisions to analyst forecasts for Coty. Recent revisions tend to reflect the latest near-term business trends. Therefore, positive revisions in estimates convey analysts' confidence in the company's business performance and profit potential.

Our research demonstrates that these adjustments in estimates directly associate with imminent stock price performance. To exploit this, we've formed the Zacks Rank, a quantitative model that includes these estimate changes and presents a viable rating system.

The Zacks Rank system, running from #1 (Strong Buy) to #5 (Strong Sell), holds an admirable track record of superior performance, independently audited, with #1 stocks contributing an average annual return of +25% since 1988. Over the past month, there's been a 2.33% rise in the Zacks Consensus EPS estimate. At present, Coty boasts a Zacks Rank of #3 (Hold).

Digging into valuation, Coty currently has a Forward P/E ratio of 29.96. This denotes a premium relative to the industry's average Forward P/E of 28.2.

It is also worth noting that COTY currently has a PEG ratio of 6.76. This popular metric is similar to the widely-known P/E ratio, with the difference being that the PEG ratio also takes into account the company's expected earnings growth rate. COTY's industry had an average PEG ratio of 2.76 as of yesterday's close.

The Cosmetics industry is part of the Consumer Staples sector. This industry currently has a Zacks Industry Rank of 175, which puts it in the bottom 31% 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.

Be sure to use Zacks.com to monitor all these stock-influencing metrics, and more, throughout the forthcoming trading sessions.


See More Zacks Research for These Tickers


Normally $25 each - click below to receive one report FREE:


Coty (COTY) - free report >>

Published in