Coca-Cola (KO - Free Report) closed at $47.92 in the latest trading session, marking a +0.04% move from the prior day. The stock outpaced the S&P 500's daily loss of 0.34%. Elsewhere, the Dow gained 0.05%, while the tech-heavy Nasdaq lost 0.69%.
KO will be looking to display strength as it nears its next earnings release. The company is expected to report EPS of $0.43, down 31.75% from the prior-year quarter. Meanwhile, the Zacks Consensus Estimate for revenue is projecting net sales of $7.61 billion, down 23.93% from the year-ago period.
KO's full-year Zacks Consensus Estimates are calling for earnings of $1.83 per share and revenue of $33.55 billion. These results would represent year-over-year changes of -13.27% and -8.32%, respectively.
It is also important to note the recent changes to analyst estimates for KO. These recent revisions tend to reflect the evolving nature of short-term business trends. As a result, we can interpret positive estimate revisions as a good sign for 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.
Ranging from #1 (Strong Buy) to #5 (Strong Sell), the Zacks Rank system has a proven, outside-audited track record of outperformance, with #1 stocks returning an average of +25% annually since 1988. Over the past month, the Zacks Consensus EPS estimate remained stagnant. KO is currently sporting a Zacks Rank of #4 (Sell).
Investors should also note KO's current valuation metrics, including its Forward P/E ratio of 26.21. This valuation marks a premium compared to its industry's average Forward P/E of 23.39.
Also, we should mention that KO has a PEG ratio of 5.45. 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. The Beverages - Soft drinks industry currently had an average PEG ratio of 4.69 as of yesterday's close.
The Beverages - Soft drinks industry is part of the Consumer Staples sector. This industry currently has a Zacks Industry Rank of 68, which puts it in the top 27% 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.
Make sure to utilize Zacks. Com to follow all of these stock-moving metrics, and more, in the coming trading sessions.