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Here's Why Coca-Cola (KO) Gained But Lagged the Market Today
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Coca-Cola (KO - Free Report) closed at $60.13 in the latest trading session, marking a +0.42% move from the prior day. The stock lagged the S&P 500's daily gain of 0.63%. On the other hand, the Dow registered a gain of 0.2%, and the technology-centric Nasdaq increased by 0.82%.
Shares of the world's largest beverage maker have appreciated by 0.83% over the course of the past month, underperforming the Consumer Staples sector's gain of 1.73% and the S&P 500's gain of 1.76%.
The upcoming earnings release of Coca-Cola will be of great interest to investors. On that day, Coca-Cola is projected to report earnings of $0.70 per share, which would represent year-over-year growth of 2.94%. Meanwhile, our latest consensus estimate is calling for revenue of $10.99 billion, up 0.05% from the prior-year quarter.
For the entire fiscal year, the Zacks Consensus Estimates are projecting earnings of $2.81 per share and a revenue of $45.85 billion, representing changes of +4.46% and +0.2%, respectively, from the prior year.
Furthermore, it would be beneficial for investors to monitor any recent shifts in analyst projections for Coca-Cola. Recent revisions tend to reflect the latest near-term business trends. With this in mind, we can consider positive estimate revisions a sign of optimism about the company's business outlook.
Research indicates that these estimate revisions are directly correlated with near-term share price momentum. To capitalize on this, we've crafted the Zacks Rank, a unique model that incorporates these estimate changes and offers a practical rating system.
The Zacks Rank system, ranging from #1 (Strong Buy) to #5 (Strong Sell), possesses a remarkable history of outdoing, externally audited, with #1 stocks returning an average annual gain of +25% since 1988. Within the past 30 days, our consensus EPS projection has moved 0.03% lower. At present, Coca-Cola boasts a Zacks Rank of #3 (Hold).
Investors should also note Coca-Cola's current valuation metrics, including its Forward P/E ratio of 21.28. This indicates a premium in contrast to its industry's Forward P/E of 20.19.
Also, we should mention that KO has a PEG ratio of 3.4. 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. Beverages - Soft drinks stocks are, on average, holding a PEG ratio of 2.26 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 64, putting it in the top 26% 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.
Be sure to use Zacks.com to monitor all these stock-influencing metrics, and more, throughout the forthcoming trading sessions.
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Here's Why Coca-Cola (KO) Gained But Lagged the Market Today
Coca-Cola (KO - Free Report) closed at $60.13 in the latest trading session, marking a +0.42% move from the prior day. The stock lagged the S&P 500's daily gain of 0.63%. On the other hand, the Dow registered a gain of 0.2%, and the technology-centric Nasdaq increased by 0.82%.
Shares of the world's largest beverage maker have appreciated by 0.83% over the course of the past month, underperforming the Consumer Staples sector's gain of 1.73% and the S&P 500's gain of 1.76%.
The upcoming earnings release of Coca-Cola will be of great interest to investors. On that day, Coca-Cola is projected to report earnings of $0.70 per share, which would represent year-over-year growth of 2.94%. Meanwhile, our latest consensus estimate is calling for revenue of $10.99 billion, up 0.05% from the prior-year quarter.
For the entire fiscal year, the Zacks Consensus Estimates are projecting earnings of $2.81 per share and a revenue of $45.85 billion, representing changes of +4.46% and +0.2%, respectively, from the prior year.
Furthermore, it would be beneficial for investors to monitor any recent shifts in analyst projections for Coca-Cola. Recent revisions tend to reflect the latest near-term business trends. With this in mind, we can consider positive estimate revisions a sign of optimism about the company's business outlook.
Research indicates that these estimate revisions are directly correlated with near-term share price momentum. To capitalize on this, we've crafted the Zacks Rank, a unique model that incorporates these estimate changes and offers a practical rating system.
The Zacks Rank system, ranging from #1 (Strong Buy) to #5 (Strong Sell), possesses a remarkable history of outdoing, externally audited, with #1 stocks returning an average annual gain of +25% since 1988. Within the past 30 days, our consensus EPS projection has moved 0.03% lower. At present, Coca-Cola boasts a Zacks Rank of #3 (Hold).
Investors should also note Coca-Cola's current valuation metrics, including its Forward P/E ratio of 21.28. This indicates a premium in contrast to its industry's Forward P/E of 20.19.
Also, we should mention that KO has a PEG ratio of 3.4. 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. Beverages - Soft drinks stocks are, on average, holding a PEG ratio of 2.26 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 64, putting it in the top 26% 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.
Be sure to use Zacks.com to monitor all these stock-influencing metrics, and more, throughout the forthcoming trading sessions.