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Coca-Cola (KO) Gains As Market Dips: What You Should Know
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Coca-Cola (KO - Free Report) closed the most recent trading day at $58.65, moving +1.02% from the previous trading session. This move outpaced the S&P 500's daily loss of 0.87%. At the same time, the Dow lost 0.08%, and the tech-heavy Nasdaq lost 0.43%.
Coming into today, shares of the world's largest beverage maker had gained 3.85% in the past month. In that same time, the Consumer Staples sector gained 0.88%, while the S&P 500 gained 0.7%.
Coca-Cola will be looking to display strength as it nears its next earnings release. The company is expected to report EPS of $0.41, down 12.77% from the prior-year quarter. Meanwhile, the Zacks Consensus Estimate for revenue is projecting net sales of $8.94 billion, up 3.77% from the year-ago period.
For the full year, our Zacks Consensus Estimates are projecting earnings of $2.28 per share and revenue of $38.1 billion, which would represent changes of +16.92% and +15.41%, respectively, from the prior year.
Any recent changes to analyst estimates for Coca-Cola should also be noted by investors. Recent revisions tend to reflect the latest 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 remained stagnant within the past month. Coca-Cola is currently a Zacks Rank #3 (Hold).
Valuation is also important, so investors should note that Coca-Cola has a Forward P/E ratio of 25.43 right now. This valuation marks a premium compared to its industry's average Forward P/E of 23.27.
Meanwhile, KO's PEG ratio is currently 3.63. 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 Beverages - Soft drinks was holding an average PEG ratio of 2.43 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 189, putting it in the bottom 26% 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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Coca-Cola (KO) Gains As Market Dips: What You Should Know
Coca-Cola (KO - Free Report) closed the most recent trading day at $58.65, moving +1.02% from the previous trading session. This move outpaced the S&P 500's daily loss of 0.87%. At the same time, the Dow lost 0.08%, and the tech-heavy Nasdaq lost 0.43%.
Coming into today, shares of the world's largest beverage maker had gained 3.85% in the past month. In that same time, the Consumer Staples sector gained 0.88%, while the S&P 500 gained 0.7%.
Coca-Cola will be looking to display strength as it nears its next earnings release. The company is expected to report EPS of $0.41, down 12.77% from the prior-year quarter. Meanwhile, the Zacks Consensus Estimate for revenue is projecting net sales of $8.94 billion, up 3.77% from the year-ago period.
For the full year, our Zacks Consensus Estimates are projecting earnings of $2.28 per share and revenue of $38.1 billion, which would represent changes of +16.92% and +15.41%, respectively, from the prior year.
Any recent changes to analyst estimates for Coca-Cola should also be noted by investors. Recent revisions tend to reflect the latest 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 remained stagnant within the past month. Coca-Cola is currently a Zacks Rank #3 (Hold).
Valuation is also important, so investors should note that Coca-Cola has a Forward P/E ratio of 25.43 right now. This valuation marks a premium compared to its industry's average Forward P/E of 23.27.
Meanwhile, KO's PEG ratio is currently 3.63. 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 Beverages - Soft drinks was holding an average PEG ratio of 2.43 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 189, putting it in the bottom 26% 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.