In the latest trading session, Coca-Cola (KO - Free Report) closed at $53.84, marking a +1.43% move from the previous day. This move outpaced the S&P 500's daily gain of 0.8%. At the same time, the Dow added 0.47%, and the tech-heavy Nasdaq gained 1.12%.
Coming into today, shares of the world's largest beverage maker had lost 4.82% in the past month. In that same time, the Consumer Staples sector lost 1.5%, while the S&P 500 lost 1.07%.
KO will be looking to display strength as it nears its next earnings release, which is expected to be October 18, 2019. In that report, analysts expect KO to post earnings of $0.56 per share. This would mark a year-over-year decline of 3.45%. Our most recent consensus estimate is calling for quarterly revenue of $9.48 billion, up 15.02% from the year-ago period.
For the full year, our Zacks Consensus Estimates are projecting earnings of $2.10 per share and revenue of $36.81 billion, which would represent changes of +0.96% and +15.56%, respectively, from the prior year.
It is also important to note the recent changes to analyst estimates for KO. 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. 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. Over the past month, the Zacks Consensus EPS estimate remained stagnant. KO is holding a Zacks Rank of #4 (Sell) right now.
Digging into valuation, KO currently has a Forward P/E ratio of 25.23. This valuation marks a premium compared to its industry's average Forward P/E of 21.48.
It is also worth noting that KO currently has a PEG ratio of 3.69. 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. The Beverages - Soft drinks was holding an average PEG ratio of 2.58 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 182, which puts it in the bottom 29% of all 250+ industries.
The Zacks Industry Rank includes is listed in order from best to worst in terms of the average Zacks Rank of the individual companies within each of these sectors. 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.