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Coca-Cola (KO) Stock Moves -0.57%: What You Should Know

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In the latest trading session, Coca-Cola (KO - Free Report) closed at $71.04, marking a -0.57% move from the previous day. The stock's change was more than the S&P 500's daily loss of 0.76%. Meanwhile, the Dow lost 1.14%, and the Nasdaq, a tech-heavy index, lost 0.18%.

The world's largest beverage maker's shares have seen an increase of 10.69% over the last month, surpassing the Consumer Staples sector's gain of 7% and the S&P 500's loss of 7.29%.

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 $0.72 per share, which would represent no growth from the year-ago period. In the meantime, our current consensus estimate forecasts the revenue to be $11.15 billion, indicating a 1.28% decline compared to the corresponding quarter of the prior year.

For the annual period, the Zacks Consensus Estimates anticipate earnings of $2.96 per share and a revenue of $47.98 billion, signifying shifts of +2.78% and +1.94%, respectively, from the last year.

Investors should also take note of any recent adjustments to analyst estimates for Coca-Cola. These revisions help to show the ever-changing nature of near-term business trends. Consequently, upward revisions in estimates express analysts' positivity towards the company's business operations and its ability to generate profits.

Our research reveals that these estimate alterations are directly linked with the stock price performance in the near future. To take advantage of this, we've established the Zacks Rank, an exclusive model that considers these estimated changes and delivers an operational rating system.

The Zacks Rank system, which varies between #1 (Strong Buy) and #5 (Strong Sell), carries an impressive track record of exceeding expectations, confirmed by external audits, with stocks at #1 delivering an average annual return of +25% since 1988. Over the past month, there's been a 0.49% rise in the Zacks Consensus EPS estimate. Coca-Cola presently features a Zacks Rank of #3 (Hold).

Looking at its valuation, Coca-Cola is holding a Forward P/E ratio of 24.16. This valuation marks a premium compared to its industry's average Forward P/E of 18.68.

Investors should also note that KO has a PEG ratio of 3.86 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. As of the close of trade yesterday, the Beverages - Soft drinks industry held an average PEG ratio of 2.51.

The Beverages - Soft drinks industry is part of the Consumer Staples sector. This industry currently has a Zacks Industry Rank of 87, which puts it in the top 35% of all 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.

Be sure to follow all of these stock-moving metrics, and many more, on Zacks.com.


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