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Coca-Cola (KO) Stock Dips While Market Gains: Key Facts

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The most recent trading session ended with Coca-Cola (KO - Free Report) standing at $71.16, reflecting a -1.17% shift from the previouse trading day's closing. The stock's change was less than the S&P 500's daily gain of 0.58%. Elsewhere, the Dow saw an upswing of 0.51%, while the tech-heavy Nasdaq appreciated by 0.81%.

The world's largest beverage maker's shares have seen an increase of 0.42% over the last month, not keeping up with the Consumer Staples sector's gain of 2.13% and the S&P 500's gain of 4.61%.

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 $0.83, reflecting a 1.19% decrease from the same quarter last year. Alongside, our most recent consensus estimate is anticipating revenue of $12.59 billion, indicating a 1.81% upward movement from the same quarter last year.

For the annual period, the Zacks Consensus Estimates anticipate earnings of $2.96 per share and a revenue of $48.17 billion, signifying shifts of +2.78% and +2.36%, respectively, from the last year.

Any recent changes to analyst estimates for Coca-Cola should also be noted by investors. These revisions help to show the ever-changing nature of near-term business trends. As a result, we can interpret positive estimate revisions as a good sign for the company's business outlook.

Based on our research, we believe these estimate revisions are directly related to near-team stock moves. To capitalize on this, we've crafted the Zacks Rank, a unique model that incorporates these estimate changes and offers a practical 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, the Zacks Consensus EPS estimate has shifted 0.07% upward. Coca-Cola is holding a Zacks Rank of #2 (Buy) right now.

In the context of valuation, Coca-Cola is at present trading with a Forward P/E ratio of 24.29. This signifies a premium in comparison to the average Forward P/E of 19.97 for its industry.

Meanwhile, KO's PEG ratio is currently 3.84. 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 industry currently had an average PEG ratio of 2.58 as of yesterday's close.

The Beverages - Soft drinks industry is part of the Consumer Staples sector. With its current Zacks Industry Rank of 36, this industry ranks in the top 15% of all industries, numbering over 250.

The Zacks Industry Rank evaluates the power of our distinct industry groups by determining the average Zacks Rank of the individual stocks forming 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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