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Coca-Cola (KO) Ascends While Market Falls: Some Facts to Note

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Coca-Cola (KO - Free Report) ended the recent trading session at $58.91, demonstrating a +0.68% swing from the preceding day's closing price. This change outpaced the S&P 500's 0.22% loss on the day. On the other hand, the Dow registered a gain of 0.06%, and the technology-centric Nasdaq decreased by 0.52%.

The the stock of world's largest beverage maker has fallen by 3.69% in the past month, leading the Consumer Staples sector's loss of 3.79% and undershooting the S&P 500's loss of 1.66%.

The investment community will be closely monitoring the performance of Coca-Cola in its forthcoming earnings report. The company is scheduled to release its earnings on April 30, 2024. The company is expected to report EPS of $0.69, up 1.47% from the prior-year quarter. Meanwhile, the Zacks Consensus Estimate for revenue is projecting net sales of $10.95 billion, down 0.29% from the year-ago period.

In terms of the entire fiscal year, the Zacks Consensus Estimates predict earnings of $2.81 per share and a revenue of $45.72 billion, indicating changes of +4.46% and -0.07%, respectively, from the former year.

It is also important to note the recent changes to analyst estimates for Coca-Cola. These latest adjustments often mirror the shifting dynamics of short-term business patterns. As a result, we can interpret positive estimate revisions as a good sign for the company's business outlook.

Our research demonstrates that these adjustments in estimates directly associate with imminent stock price performance. To utilize this, we have created the Zacks Rank, a proprietary model that integrates these estimate changes and provides a functional rating system.

The Zacks Rank system, stretching from #1 (Strong Buy) to #5 (Strong Sell), has a noteworthy track record of outperforming, validated by third-party audits, with stocks rated #1 producing an average annual return of +25% since the year 1988. Over the last 30 days, the Zacks Consensus EPS estimate has remained unchanged. As of now, Coca-Cola holds a Zacks Rank of #2 (Buy).

In terms of valuation, Coca-Cola is currently trading at a Forward P/E ratio of 20.79. This signifies a premium in comparison to the average Forward P/E of 18.49 for its industry.

Investors should also note that KO has a PEG ratio of 3.32 right now. The PEG ratio is akin to the commonly utilized P/E ratio, but this measure also incorporates the company's anticipated earnings growth rate. The Beverages - Soft drinks industry currently had an average PEG ratio of 2.23 as of yesterday's close.

The Beverages - Soft drinks industry is part of the Consumer Staples sector. Currently, this industry holds a Zacks Industry Rank of 29, positioning it in the top 12% of all 250+ industries.

The Zacks Industry Rank gauges the strength of our 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.

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