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Coca-Cola (KO) Stock Sinks As Market Gains: What You Should Know

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Coca-Cola (KO - Free Report) closed the most recent trading day at $45.51, moving -0.04% from the previous trading session. This change lagged the S&P 500's 1.09% gain on the day. Meanwhile, the Dow gained 0.84%, and the Nasdaq, a tech-heavy index, added 1.42%.

Heading into today, shares of the world's largest beverage maker had gained 0.95% over the past month, lagging the Consumer Staples sector's gain of 1.49% and the S&P 500's gain of 1.18% in that time.

KO will be looking to display strength as it nears its next earnings release, which is expected to be April 23, 2019. In that report, analysts expect KO to post earnings of $0.47 per share. This would mark no growth from the year-ago period. Our most recent consensus estimate is calling for quarterly revenue of $7.90 billion, up 3.6% from the year-ago period.

For the full year, our Zacks Consensus Estimates are projecting earnings of $2.10 per share and revenue of $34.81 billion, which would represent changes of +0.96% and +9.29%, respectively, from the prior year.

Any recent changes to analyst estimates for KO 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.

Research indicates that these estimate revisions are directly correlated with near-term share price momentum. 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 ranges from #1 (Strong Buy) to #5 (Strong Sell). It has a remarkable, outside-audited track record of success, with #1 stocks delivering an average annual return of +25% since 1988. The Zacks Consensus EPS estimate has moved 0.01% lower within the past month. KO is currently a Zacks Rank #4 (Sell).

Valuation is also important, so investors should note that KO has a Forward P/E ratio of 21.67 right now. Its industry sports an average Forward P/E of 21.67, so we one might conclude that KO is trading at a no noticeable deviation comparatively.

Meanwhile, KO's PEG ratio is currently 3.05. 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 was holding an average PEG ratio of 2.18 at yesterday's closing price.

The Beverages - Soft drinks industry is part of the Consumer Staples sector. This industry currently has a Zacks Industry Rank of 226, which puts it in the bottom 12% 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 follow all of these stock-moving metrics, and many more, on Zacks.com.




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