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Coca-Cola (KO) Rises But Trails Market: What Investors Should Know
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The latest trading session saw Coca-Cola (KO - Free Report) ending at $71.73, denoting a +0.13% adjustment from its last day's close. The stock's change was less than the S&P 500's daily gain of 0.28%. Meanwhile, the Dow gained 0.15%, and the Nasdaq, a tech-heavy index, added 0.15%.
Shares of the world's largest beverage maker witnessed a gain of 2.65% over the previous month, beating the performance of the Consumer Staples sector with its gain of 1.83% and the S&P 500's gain of 2%.
Market participants will be closely following the financial results of Coca-Cola in its upcoming release. The company's earnings per share (EPS) are projected to be $0.75, reflecting a 1.35% increase from the same quarter last year. At the same time, our most recent consensus estimate is projecting a revenue of $11.65 billion, reflecting a 2.56% fall from the equivalent quarter last year.
In terms of the entire fiscal year, the Zacks Consensus Estimates predict earnings of $2.85 per share and a revenue of $46.03 billion, indicating changes of +5.95% and +0.61%, respectively, from the former year.
It's also important for investors to be aware of any recent modifications to analyst estimates for Coca-Cola. These revisions typically reflect the latest short-term business trends, which can change frequently. As such, positive estimate revisions reflect analyst optimism about the company's business and profitability.
Our research reveals that these estimate alterations are directly linked with the stock price performance in the near future. 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 ranges from #1 (Strong Buy) to #5 (Strong Sell). It has a remarkable, outside-audited track record of success, with #1 stocks delivering an average annual return of +25% since 1988. The Zacks Consensus EPS estimate has moved 0.03% higher within the past month. Coca-Cola is holding a Zacks Rank of #2 (Buy) right now.
From a valuation perspective, Coca-Cola is currently exchanging hands at a Forward P/E ratio of 25.15. This indicates a premium in contrast to its industry's Forward P/E of 19.46.
We can also see that KO currently has a PEG ratio of 3.96. 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 2.89 at yesterday's closing price.
The Beverages - Soft drinks industry is part of the Consumer Staples sector. At present, this industry carries a Zacks Industry Rank of 152, placing it within the bottom 40% of over 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.
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) Rises But Trails Market: What Investors Should Know
The latest trading session saw Coca-Cola (KO - Free Report) ending at $71.73, denoting a +0.13% adjustment from its last day's close. The stock's change was less than the S&P 500's daily gain of 0.28%. Meanwhile, the Dow gained 0.15%, and the Nasdaq, a tech-heavy index, added 0.15%.
Shares of the world's largest beverage maker witnessed a gain of 2.65% over the previous month, beating the performance of the Consumer Staples sector with its gain of 1.83% and the S&P 500's gain of 2%.
Market participants will be closely following the financial results of Coca-Cola in its upcoming release. The company's earnings per share (EPS) are projected to be $0.75, reflecting a 1.35% increase from the same quarter last year. At the same time, our most recent consensus estimate is projecting a revenue of $11.65 billion, reflecting a 2.56% fall from the equivalent quarter last year.
In terms of the entire fiscal year, the Zacks Consensus Estimates predict earnings of $2.85 per share and a revenue of $46.03 billion, indicating changes of +5.95% and +0.61%, respectively, from the former year.
It's also important for investors to be aware of any recent modifications to analyst estimates for Coca-Cola. These revisions typically reflect the latest short-term business trends, which can change frequently. As such, positive estimate revisions reflect analyst optimism about the company's business and profitability.
Our research reveals that these estimate alterations are directly linked with the stock price performance in the near future. 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 ranges from #1 (Strong Buy) to #5 (Strong Sell). It has a remarkable, outside-audited track record of success, with #1 stocks delivering an average annual return of +25% since 1988. The Zacks Consensus EPS estimate has moved 0.03% higher within the past month. Coca-Cola is holding a Zacks Rank of #2 (Buy) right now.
From a valuation perspective, Coca-Cola is currently exchanging hands at a Forward P/E ratio of 25.15. This indicates a premium in contrast to its industry's Forward P/E of 19.46.
We can also see that KO currently has a PEG ratio of 3.96. 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 2.89 at yesterday's closing price.
The Beverages - Soft drinks industry is part of the Consumer Staples sector. At present, this industry carries a Zacks Industry Rank of 152, placing it within the bottom 40% of over 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.
Make sure to utilize Zacks.com to follow all of these stock-moving metrics, and more, in the coming trading sessions.