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Coca-Cola (KO) Stock Falls Amid Market Uptick: What Investors Need to Know
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Coca-Cola (KO - Free Report) closed the most recent trading day at $80.91, moving -2.07% from the previous trading session. The stock's change was less than the S&P 500's daily gain of 1.65%. On the other hand, the Dow registered a gain of 0.92%, and the technology-centric Nasdaq increased by 3.07%.
Heading into today, shares of the world's largest beverage maker had gained 2.23% over the past month, outpacing the Consumer Staples sector's gain of 1.76% and the S&P 500's gain of 0.48%.
The investment community will be paying close attention to the earnings performance of Coca-Cola in its upcoming release. The company is forecasted to report an EPS of $0.93, showcasing a 6.9% upward movement from the corresponding quarter of the prior year. Simultaneously, our latest consensus estimate expects the revenue to be $13.05 billion, showing a 4.15% escalation compared to the year-ago quarter.
Looking at the full year, the Zacks Consensus Estimates suggest analysts are expecting earnings of $3.26 per share and revenue of $49.33 billion. These totals would mark changes of +8.67% and +2.99%, respectively, from 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. With this in mind, we can consider positive estimate revisions a sign of optimism about the business outlook.
Our research reveals that these estimate alterations are directly linked with the stock price performance in the near future. To utilize this, we have created the Zacks Rank, a proprietary model that integrates these estimate changes and provides a functional rating system.
The Zacks Rank system, spanning from #1 (Strong Buy) to #5 (Strong Sell), boasts an impressive track record of outperformance, audited externally, with #1 ranked stocks yielding an average annual return of +25% since 1988. Over the past month, the Zacks Consensus EPS estimate has moved 0.03% higher. Currently, Coca-Cola is carrying a Zacks Rank of #2 (Buy).
Investors should also note Coca-Cola's current valuation metrics, including its Forward P/E ratio of 25.33. This expresses a premium compared to the average Forward P/E of 18.16 of its industry.
Meanwhile, KO's PEG ratio is currently 3.3. 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. Beverages - Soft drinks stocks are, on average, holding a PEG ratio of 2.12 based on yesterday's closing prices.
The Beverages - Soft drinks industry is part of the Consumer Staples sector. This industry currently has a Zacks Industry Rank of 74, which puts it in the top 31% of all 250+ industries.
The Zacks Industry Rank gauges the strength of our 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.
Be sure to use Zacks.com to monitor all these stock-influencing metrics, and more, throughout the forthcoming trading sessions.
View the Zacks #1 Rank List
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Coca-Cola (KO) Stock Falls Amid Market Uptick: What Investors Need to Know
Coca-Cola (KO - Free Report) closed the most recent trading day at $80.91, moving -2.07% from the previous trading session. The stock's change was less than the S&P 500's daily gain of 1.65%. On the other hand, the Dow registered a gain of 0.92%, and the technology-centric Nasdaq increased by 3.07%.
Heading into today, shares of the world's largest beverage maker had gained 2.23% over the past month, outpacing the Consumer Staples sector's gain of 1.76% and the S&P 500's gain of 0.48%.
The investment community will be paying close attention to the earnings performance of Coca-Cola in its upcoming release. The company is forecasted to report an EPS of $0.93, showcasing a 6.9% upward movement from the corresponding quarter of the prior year. Simultaneously, our latest consensus estimate expects the revenue to be $13.05 billion, showing a 4.15% escalation compared to the year-ago quarter.
Looking at the full year, the Zacks Consensus Estimates suggest analysts are expecting earnings of $3.26 per share and revenue of $49.33 billion. These totals would mark changes of +8.67% and +2.99%, respectively, from 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. With this in mind, we can consider positive estimate revisions a sign of optimism about the business outlook.
Our research reveals that these estimate alterations are directly linked with the stock price performance in the near future. To utilize this, we have created the Zacks Rank, a proprietary model that integrates these estimate changes and provides a functional rating system.
The Zacks Rank system, spanning from #1 (Strong Buy) to #5 (Strong Sell), boasts an impressive track record of outperformance, audited externally, with #1 ranked stocks yielding an average annual return of +25% since 1988. Over the past month, the Zacks Consensus EPS estimate has moved 0.03% higher. Currently, Coca-Cola is carrying a Zacks Rank of #2 (Buy).
Investors should also note Coca-Cola's current valuation metrics, including its Forward P/E ratio of 25.33. This expresses a premium compared to the average Forward P/E of 18.16 of its industry.
Meanwhile, KO's PEG ratio is currently 3.3. 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. Beverages - Soft drinks stocks are, on average, holding a PEG ratio of 2.12 based on yesterday's closing prices.
The Beverages - Soft drinks industry is part of the Consumer Staples sector. This industry currently has a Zacks Industry Rank of 74, which puts it in the top 31% of all 250+ industries.
The Zacks Industry Rank gauges the strength of our 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.
Be sure to use Zacks.com to monitor all these stock-influencing metrics, and more, throughout the forthcoming trading sessions.