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Coca-Cola (KO) Gains But Lags Market: What You Should Know
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Coca-Cola (KO - Free Report) closed at $58.18 in the latest trading session, marking a +0.71% move from the prior day. This change lagged the S&P 500's 1.02% gain on the day. At the same time, the Dow added 0.74%, and the tech-heavy Nasdaq lost 0.4%.
Prior to today's trading, shares of the world's largest beverage maker had gained 3.38% over the past month. This has outpaced the Consumer Staples sector's gain of 2.7% and the S&P 500's loss of 0.91% in that time.
Coca-Cola will be looking to display strength as it nears its next earnings release. In that report, analysts expect Coca-Cola to post earnings of $0.40 per share. This would mark a year-over-year decline of 14.89%. Meanwhile, our latest consensus estimate is calling for revenue of $8.94 billion, up 3.77% from the prior-year quarter.
KO's full-year Zacks Consensus Estimates are calling for earnings of $2.28 per share and revenue of $38.1 billion. These results would represent year-over-year changes of +16.92% and +15.41%, respectively.
It is also important to note the recent changes to analyst estimates for Coca-Cola. These recent revisions tend to reflect the evolving nature of short-term business trends. As such, positive estimate revisions reflect analyst optimism about the company's business and profitability.
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, which ranges from #1 (Strong Buy) to #5 (Strong Sell), has an impressive outside-audited track record of outperformance, with #1 stocks generating an average annual return of +25% since 1988. The Zacks Consensus EPS estimate has moved 0.02% lower within the past month. Coca-Cola is currently a Zacks Rank #3 (Hold).
Looking at its valuation, Coca-Cola is holding a Forward P/E ratio of 25.31. Its industry sports an average Forward P/E of 23.58, so we one might conclude that Coca-Cola is trading at a premium comparatively.
It is also worth noting that KO currently has a PEG ratio of 3.1. 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 2.41 as of yesterday's close.
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.
You can find more information on all of these metrics, and much more, on Zacks.com.
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Coca-Cola (KO) Gains But Lags Market: What You Should Know
Coca-Cola (KO - Free Report) closed at $58.18 in the latest trading session, marking a +0.71% move from the prior day. This change lagged the S&P 500's 1.02% gain on the day. At the same time, the Dow added 0.74%, and the tech-heavy Nasdaq lost 0.4%.
Prior to today's trading, shares of the world's largest beverage maker had gained 3.38% over the past month. This has outpaced the Consumer Staples sector's gain of 2.7% and the S&P 500's loss of 0.91% in that time.
Coca-Cola will be looking to display strength as it nears its next earnings release. In that report, analysts expect Coca-Cola to post earnings of $0.40 per share. This would mark a year-over-year decline of 14.89%. Meanwhile, our latest consensus estimate is calling for revenue of $8.94 billion, up 3.77% from the prior-year quarter.
KO's full-year Zacks Consensus Estimates are calling for earnings of $2.28 per share and revenue of $38.1 billion. These results would represent year-over-year changes of +16.92% and +15.41%, respectively.
It is also important to note the recent changes to analyst estimates for Coca-Cola. These recent revisions tend to reflect the evolving nature of short-term business trends. As such, positive estimate revisions reflect analyst optimism about the company's business and profitability.
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, which ranges from #1 (Strong Buy) to #5 (Strong Sell), has an impressive outside-audited track record of outperformance, with #1 stocks generating an average annual return of +25% since 1988. The Zacks Consensus EPS estimate has moved 0.02% lower within the past month. Coca-Cola is currently a Zacks Rank #3 (Hold).
Looking at its valuation, Coca-Cola is holding a Forward P/E ratio of 25.31. Its industry sports an average Forward P/E of 23.58, so we one might conclude that Coca-Cola is trading at a premium comparatively.
It is also worth noting that KO currently has a PEG ratio of 3.1. 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 2.41 as of yesterday's close.
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.
You can find more information on all of these metrics, and much more, on Zacks.com.