Coca-Cola (KO - Free Report) closed at $45.70 in the latest trading session, marking a -1.49% move from the prior day. This move was narrower than the S&P 500's daily loss of 3.29%. Meanwhile, the Dow lost 3.15%, and the Nasdaq, a tech-heavy index, lost 4.08%.
Heading into today, shares of the world's largest beverage maker had gained 0.8% over the past month, outpacing the Consumer Staples sector's loss of 1.24% and the S&P 500's gain of 0.44% in that time.
Investors will be hoping for strength from KO as it approaches its next earnings release, which is expected to be October 30, 2018. The company is expected to report EPS of $0.55, up 10% from the prior-year quarter. Our most recent consensus estimate is calling for quarterly revenue of $8.23 billion, down 9.29% from the year-ago period.
For the full year, our Zacks Consensus Estimates are projecting earnings of $2.07 per share and revenue of $32 billion, which would represent changes of +8.38% and -9.62%, respectively, from the prior year.
Investors should also note any recent changes to analyst estimates for KO. 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 company's business outlook.
Our research shows that these estimate changes are directly correlated with near-term stock prices. Investors can capitalize on this by using the Zacks Rank. This model considers these estimate changes and provides a simple, actionable rating system.
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. The Zacks Consensus EPS estimate remained stagnant within the past month. KO is holding a Zacks Rank of #4 (Sell) right now.
Digging into valuation, KO currently has a Forward P/E ratio of 22.37. Its industry sports an average Forward P/E of 22.18, so we one might conclude that KO is trading at a premium comparatively.
It is also worth noting that KO currently has a PEG ratio of 2.92. This metric is used similarly to the famous P/E ratio, but the PEG ratio also takes into account the stock's expected earnings growth rate. Beverages - Soft drinks stocks are, on average, holding a PEG ratio of 2.13 based on yesterday's closing prices.
The Beverages - Soft drinks industry is part of the Consumer Staples sector. This group has a Zacks Industry Rank of 189, putting it in the bottom 26% 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.
You can find more information on all of these metrics, and much more, on Zacks.com.