Coca-Cola (KO) Stock Sinks As Market Gains: What You Should Know
Coca-Cola (KO) closed at $54.51 in the latest trading session, marking a -0.06% move from the prior day. This change lagged the S&P 500's 0.74% gain on the day.
Prior to today's trading, shares of the world's largest beverage maker had gained 2.67% over the past month. This has lagged the Consumer Staples sector's gain of 3.25% and the S&P 500's gain of 3.21% in that time.
The company is expected to report EPS of $0.55, up 30.95% from the prior-year quarter. Our most recent consensus estimate is calling for quarterly revenue of $9.4 billion, up 31.53% from the year-ago period.
Looking at the full year, our Zacks Consensus Estimates suggest analysts are expecting earnings of $2.18 per share and revenue of $37.03 billion. These totals would mark changes of +11.79% and +12.15%, respectively, from last year.
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. With this in mind, we can consider positive estimate revisions a sign of optimism about the company's business outlook.
Based on our research, we believe these estimate revisions are directly related to near-team stock moves. We developed the Zacks Rank to capitalize on this phenomenon. Our system takes these estimate changes into account and delivers a clear, actionable rating model.
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. Within the past 30 days, our consensus EPS projection has moved 2.85% higher. KO is currently sporting a Zacks Rank of #3 (Hold).
In terms of valuation, KO is currently trading at a Forward P/E ratio of 25.03. Its industry sports an average Forward P/E of 24.06, so we one might conclude that KO is trading at a premium comparatively.
Investors should also note that KO has a PEG ratio of 3.29 right now. 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 2.66 at yesterday's closing price.
The Beverages - Soft drinks industry is part of the Consumer Staples sector. This group has a Zacks Industry Rank of 168, putting it in the bottom 34% 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.
To follow KO in the coming trading sessions, be sure to utilize Zacks.com.
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CocaCola Company The (KO) : Free Stock Analysis Report
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