Technology

Coca-Cola (KO) Stock Moves -0.23%: What You Should Know

Coca-Cola (KO) closed the most recent trading day at $46.54, moving -0.23% from the previous trading session. This move was narrower than the S&P 500's daily loss of 0.46%. Elsewhere, the Dow lost 0.13%, while the tech-heavy Nasdaq lost 0.63%.

Coming into today, shares of the world's largest beverage maker had gained 4.36% in the past month. In that same time, the Consumer Staples sector gained 4.17%, while the S&P 500 gained 1.08%.

Investors will be hoping for strength from KO as it approaches its next earnings release, which is expected to be April 23, 2019. The company is expected to report EPS of $0.46, down 2.13% from the prior-year quarter. Meanwhile, the Zacks Consensus Estimate for revenue is projecting net sales of $7.90 billion, up 3.6% from the year-ago period.

KO's full-year Zacks Consensus Estimates are calling for earnings of $2.09 per share and revenue of $34.81 billion. These results would represent year-over-year changes of +0.48% and +9.29%, respectively.

Investors should also note any recent changes to analyst estimates for KO. Recent revisions tend to reflect the latest near-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.

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. The Zacks Consensus EPS estimate has moved 0.05% higher within the past month. KO is currently a Zacks Rank #4 (Sell).

Investors should also note KO's current valuation metrics, including its Forward P/E ratio of 22.28. This valuation marks a discount compared to its industry's average Forward P/E of 22.32.

We can also see that KO currently has a PEG ratio of 3.14. 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. Beverages - Soft drinks stocks are, on average, holding a PEG ratio of 2.18 based on yesterday's closing prices.

The Beverages - Soft drinks industry is part of the Consumer Staples sector. This industry currently has a Zacks Industry Rank of 228, which puts it in the bottom 11% of all 250+ industries.

The Zacks Industry Rank gauges the strength of our individual 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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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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