In the latest trading session, Coca-Cola (KO) closed at $62.92, marking a -0.05% move from the previous day. This change lagged the S&P 500's 0.75% gain on the day. At the same time, the Dow added 0.4%, and the tech-heavy Nasdaq gained 10.36%.
Prior to today's trading, shares of the world's largest beverage maker had lost 0.77% over the past month. This has was narrower than the Consumer Staples sector's loss of 3.33% and the S&P 500's loss of 5.98% in that time.
Wall Street will be looking for positivity from Coca-Cola as it approaches its next earnings report date. The company is expected to report EPS of $0.45, unchanged from the prior-year quarter. Meanwhile, our latest consensus estimate is calling for revenue of $9.95 billion, up 5.1% from the prior-year quarter.
Any recent changes to analyst estimates for Coca-Cola should also be noted by investors. These revisions help to show the ever-changing nature of near-term business trends. As a result, we can interpret positive estimate revisions as a good sign for the company's business outlook.
Based on our research, we believe these estimate revisions are directly related to near-team stock moves. To benefit from this, we have developed the Zacks Rank, a proprietary model which takes these estimate changes into account and provides an 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. The Zacks Consensus EPS estimate has moved 0.32% higher within the past month. Coca-Cola is currently sporting a Zacks Rank of #3 (Hold).
Investors should also note Coca-Cola's current valuation metrics, including its Forward P/E ratio of 24.9. This valuation marks a premium compared to its industry's average Forward P/E of 24.82.
Investors should also note that KO has a PEG ratio of 4 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 industry currently had an average PEG ratio of 2.2 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 40, which puts it in the top 16% 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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