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

Coca-Cola (KO) closed the most recent trading day at $48.27, moving +1.15% from the previous trading session. The stock outpaced the S&P 500's daily gain of 0.22%. Meanwhile, the Dow gained 0.7%, and the Nasdaq, a tech-heavy index, added 0.08%.

Coming into today, shares of the world's largest beverage maker had gained 3.83% in the past month. In that same time, the Consumer Staples sector gained 3.72%, while the S&P 500 gained 9.27%.

KO will be looking to display strength as it nears its nex t earnings release, which is expected to be February 14, 2019. On that day, KO is projected to report earnings of $0.43 per share, which would represent year-over-year growth of 10.26%. Meanwhile, the Zacks Consensus Estimate for revenue is projecting net sales of $7.05 billion, down 6.13% from the year-ago period.

It is also important to note the recent changes to analyst estimates for KO. These revisions typically reflect the latest short-term business trends, which can change frequently. With this in mind, we can consider positive estimate revisions a sign of optimism about 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.

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. Over the past month, the Zacks Consensus EPS estimate has moved 0.14% lower. KO currently has a Zacks Rank of #3 (Hold).

Investors should also note KO's current valuation metrics, including its Forward P/E ratio of 21.67. This represents a premium compared to its industry's average Forward P/E of 20.16.

Investors should also note that KO has a PEG ratio of 2.92 right now. 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 was holding an average PEG ratio of 1.79 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 210, which puts it in the bottom 18% 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.

Make sure to utilize Zacks. Com to follow all of these stock-moving metrics, and more, in the coming trading sessions.

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The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.


The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.

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