Coty (COTY) closed at $11.82 in the latest trading session, marking a +1.03% move from the prior day. This move outpaced the S&P 500's daily gain of 0.03%. Elsewhere, the Dow gained 0.15%, while the tech-heavy Nasdaq added 0.12%.
Heading into today, shares of the beauty products company had lost 6.85% over the past month, lagging the Consumer Staples sector's gain of 0.89% and the S&P 500's gain of 1.66% in that time.
Wall Street will be looking for positivity from Coty as it approaches its next earnings report date. This is expected to be August 22, 2023. In that report, analysts expect Coty to post earnings of $0.02 per share. This would mark year-over-year growth of 300%. Meanwhile, the Zacks Consensus Estimate for revenue is projecting net sales of $1.32 billion, up 13.41% from the year-ago period.
Investors might also notice recent changes to analyst estimates for Coty. These revisions typically reflect the latest short-term business trends, which can change frequently. As a result, we can interpret positive estimate revisions as a good sign for the company's business outlook.
Research indicates that these estimate revisions are directly correlated with near-term share price momentum. 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. Within the past 30 days, our consensus EPS projection has moved 1.89% higher. Coty currently has a Zacks Rank of #2 (Buy).
Valuation is also important, so investors should note that Coty has a Forward P/E ratio of 24.43 right now. This valuation marks a discount compared to its industry's average Forward P/E of 32.25.
It is also worth noting that COTY currently has a PEG ratio of 1.3. The PEG ratio is similar to the widely-used P/E ratio, but this metric also takes the company's expected earnings growth rate into account. The Cosmetics industry currently had an average PEG ratio of 2.06 as of yesterday's close.
The Cosmetics industry is part of the Consumer Staples sector. This industry currently has a Zacks Industry Rank of 165, which puts it in the bottom 35% 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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