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Vita Coco Company, Inc. (COCO) Registers a Bigger Fall Than the Market: Important Facts to Note

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Vita Coco Company, Inc. (COCO - Free Report) closed at $34.10 in the latest trading session, marking a -1.47% move from the prior day. The stock's performance was behind the S&P 500's daily loss of 0.53%. Elsewhere, the Dow lost 0.26%, while the tech-heavy Nasdaq lost 0.83%.

The company's stock has dropped by 2.51% in the past month, falling short of the Consumer Staples sector's gain of 1.44% and the S&P 500's gain of 5.17%.

The upcoming earnings release of Vita Coco Company, Inc. will be of great interest to investors. The company is forecasted to report an EPS of $0.38, showcasing a 18.75% upward movement from the corresponding quarter of the prior year. At the same time, our most recent consensus estimate is projecting a revenue of $163.07 million, reflecting a 13.15% rise from the equivalent quarter last year.

COCO's full-year Zacks Consensus Estimates are calling for earnings of $1.15 per share and revenue of $582.16 million. These results would represent year-over-year changes of +7.48% and +12.82%, respectively.

Investors should also pay attention to any latest changes in analyst estimates for Vita Coco Company, Inc. Recent revisions tend to reflect the latest near-term business trends. As such, positive estimate revisions reflect analyst optimism about the company's business and profitability.

Based on our research, we believe these estimate revisions are directly related to near-team stock moves. 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, which ranges from #1 (Strong Buy) to #5 (Strong Sell), has an impressive outside-audited track record of outperformance, with #1 stocks generating an average annual return of +25% since 1988. Over the past month, there's been no change in the Zacks Consensus EPS estimate. Right now, Vita Coco Company, Inc. possesses a Zacks Rank of #3 (Hold).

From a valuation perspective, Vita Coco Company, Inc. is currently exchanging hands at a Forward P/E ratio of 30.18. This indicates a premium in contrast to its industry's Forward P/E of 19.63.

One should further note that COCO currently holds a PEG ratio of 1.82. This popular metric is similar to the widely-known P/E ratio, with the difference being that the PEG ratio also takes into account the company's expected earnings growth rate. COCO's industry had an average PEG ratio of 2.55 as of yesterday's close.

The Beverages - Soft drinks industry is part of the Consumer Staples sector. This industry, currently bearing a Zacks Industry Rank of 53, finds itself in the top 22% echelons of all 250+ industries.

The Zacks Industry Rank gauges the strength of our individual 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.

To follow COCO in the coming trading sessions, be sure to utilize Zacks.com.


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