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Here's Why Coca-Cola (KO) Fell More Than Broader Market

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The latest trading session saw Coca-Cola (KO - Free Report) ending at $69.90, denoting a -0.95% adjustment from its last day's close. The stock's performance was behind the S&P 500's daily loss of 0.02%. Meanwhile, the Dow experienced a rise of 0.38%, and the technology-dominated Nasdaq saw an increase of 0.04%.

Prior to today's trading, shares of the world's largest beverage maker had lost 1.64% over the past month. This has was narrower than the Consumer Staples sector's loss of 2.37% and lagged the S&P 500's gain of 3.77% in that time.

The upcoming earnings release of Coca-Cola will be of great interest to investors. The company's earnings report is expected on October 23, 2024. The company is expected to report EPS of $0.74, unchanged from the prior-year quarter. Alongside, our most recent consensus estimate is anticipating revenue of $11.61 billion, indicating a 2.85% downward movement from the same quarter last year.

Regarding the entire year, the Zacks Consensus Estimates forecast earnings of $2.85 per share and revenue of $46.01 billion, indicating changes of +5.95% and +0.55%, respectively, compared to the previous year.

Investors should also note any recent changes to analyst estimates for Coca-Cola. These latest adjustments often mirror the shifting dynamics of short-term business patterns. As such, positive estimate revisions reflect analyst optimism about the company's business and profitability.

Our research shows that these estimate changes are directly correlated with near-term stock prices. To benefit from this, we have developed the Zacks Rank, a proprietary model which takes these estimate changes into account and provides an actionable 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 last 30 days, the Zacks Consensus EPS estimate has moved 0.07% lower. Right now, Coca-Cola possesses a Zacks Rank of #3 (Hold).

Digging into valuation, Coca-Cola currently has a Forward P/E ratio of 24.79. This indicates a premium in contrast to its industry's Forward P/E of 18.29.

Also, we should mention that KO has a PEG ratio of 3.97. The PEG ratio bears resemblance to the frequently used P/E ratio, but this parameter also includes the company's expected earnings growth trajectory. By the end of yesterday's trading, the Beverages - Soft drinks industry had an average PEG ratio of 3.03.

The Beverages - Soft drinks industry is part of the Consumer Staples sector. With its current Zacks Industry Rank of 151, this industry ranks in the bottom 41% of all industries, numbering over 250.

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.

Don't forget to use Zacks.com to keep track of all these stock-moving metrics, and others, in the upcoming trading sessions.


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