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Coca-Cola (KO) Stock Declines While Market Improves: Some Information for Investors

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The most recent trading session ended with Coca-Cola (KO - Free Report) standing at $62.67, reflecting a -1.07% shift from the previouse trading day's closing. The stock trailed the S&P 500, which registered a daily gain of 0.72%. Elsewhere, the Dow gained 0.3%, while the tech-heavy Nasdaq added 1.35%.

Shares of the world's largest beverage maker witnessed a gain of 4.18% over the previous month, beating the performance of the Consumer Staples sector with its gain of 0.43% and the S&P 500's gain of 1.02%.

Analysts and investors alike will be keeping a close eye on the performance of Coca-Cola in its upcoming earnings disclosure. The company's earnings report is set to go public on February 11, 2025. The company is forecasted to report an EPS of $0.51, showcasing a 4.08% upward movement from the corresponding quarter of the prior year. At the same time, our most recent consensus estimate is projecting a revenue of $10.69 billion, reflecting a 1.48% fall from the equivalent quarter last year.

Investors should also note any recent changes to analyst estimates for Coca-Cola. These revisions typically reflect the latest short-term business trends, which can change frequently. Consequently, upward revisions in estimates express analysts' positivity towards the company's business operations and its ability to generate profits.

Empirical research indicates that these revisions in estimates have a direct correlation with impending stock price performance. We developed the Zacks Rank to capitalize on this phenomenon. Our system takes these estimate changes into account and delivers a clear, actionable rating model.

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. Over the past month, the Zacks Consensus EPS estimate has moved 0.46% lower. Coca-Cola presently features a Zacks Rank of #3 (Hold).

Looking at valuation, Coca-Cola is presently trading at a Forward P/E ratio of 21.53. This indicates a premium in contrast to its industry's Forward P/E of 17.92.

Also, we should mention that KO has a PEG ratio of 3.55. The PEG ratio is similar to the widely-used P/E ratio, but this metric also takes the company's expected earnings growth rate into account. As of the close of trade yesterday, the Beverages - Soft drinks industry held an average PEG ratio of 2.27.

The Beverages - Soft drinks industry is part of the Consumer Staples sector. At present, this industry carries a Zacks Industry Rank of 166, placing it within the bottom 34% of over 250 industries.

The Zacks Industry Rank assesses the strength of our separate industry groups by calculating the average Zacks Rank of the individual stocks contained within the groups. Our research shows that the top 50% rated industries outperform the bottom half by a factor of 2 to 1.

Ensure to harness Zacks.com to stay updated with all these stock-shifting metrics, among others, in the next trading sessions.


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