In the latest trading session, Coca-Cola (KO - Free Report) closed at $46.90, marking a -1.41% move from the previous day. This change lagged the S&P 500's 0.22% gain on the day. Elsewhere, the Dow gained 0.59%, while the tech-heavy Nasdaq added 0.16%.
Heading into today, shares of the world's largest beverage maker had lost 1.55% over the past month, outpacing the Consumer Staples sector's loss of 2.57% and lagging the S&P 500's gain of 0.49% in that time.
Investors will be hoping for strength from KO as it approaches its next earnings release, which is expected to be February 15, 2019. In that report, analysts expect KO to post earnings of $0.43 per share. This would mark year-over-year growth of 10.26%. Meanwhile, our latest consensus estimate is calling for revenue of $7.05 billion, down 6.13% from the prior-year quarter.
Investors might also notice recent changes to analyst estimates for KO. These revisions help to show the ever-changing nature of 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. 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 has moved 0.05% higher within the past month. KO is holding a Zacks Rank of #3 (Hold) right now.
Investors should also note KO's current valuation metrics, including its Forward P/E ratio of 21.56. Its industry sports an average Forward P/E of 19.16, 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 2.91. 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. The Beverages - Soft drinks industry currently had an average PEG ratio of 1.85 as of yesterday's close.
The Beverages - Soft drinks industry is part of the Consumer Staples sector. This group has a Zacks Industry Rank of 214, putting it in the bottom 17% 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 KO in the coming trading sessions, be sure to utilize Zacks.com.