In the latest trading session, Coca-Cola (KO – Free Report) closed at $70.76, marking a +1.16% move from the previous day. The stock outperformed the S&P 500, which registered a daily loss of 3.46%. On the other hand, the Dow registered a loss of 2.5%, and the technology-centric Nasdaq decreased by 4.31%.
Shares of the world’s largest beverage maker witnessed a gain of 0.01% over the previous month, beating the performance of the Consumer Staples sector with its loss of 1.83% and the S&P 500’s loss of 5.27%.
Analysts and investors alike will be keeping a close eye on the performance of Coca-Cola in its upcoming earnings disclosure. The company’s earnings report is set to go public on April 29, 2025. The company is predicted to post an EPS of $0.72, indicating constancy compared to the equivalent quarter last year. Meanwhile, the latest consensus estimate predicts the revenue to be $11.15 billion, indicating a 1.36% decrease compared to the same quarter of the previous year.
For the full year, the Zacks Consensus Estimates project earnings of $2.96 per share and a revenue of $47.99 billion, demonstrating changes of +2.78% and +1.98%, respectively, from the preceding year.
Additionally, investors should keep an eye on any recent revisions to analyst forecasts for Coca-Cola. These recent revisions tend to reflect the evolving nature of short-term business trends. Therefore, positive revisions in estimates convey analysts’ confidence in the company’s business performance and profit potential.
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.
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. Over the past month, the Zacks Consensus EPS estimate has moved 0.03% lower. At present, Coca-Cola boasts a Zacks Rank of #3 (Hold).
Valuation is also important, so investors should note that Coca-Cola has a Forward P/E ratio of 23.14 right now. This represents a premium compared to its industry’s average Forward P/E of 17.98.
One should further note that KO currently holds a PEG ratio of 3.7. Comparable to the widely accepted P/E ratio, the PEG ratio also accounts for the company’s projected earnings growth. As of the close of trade yesterday, the Beverages – Soft drinks industry held an average PEG ratio of 2.58.
The Beverages – Soft drinks industry is part of the Consumer Staples sector. Currently, this industry holds a Zacks Industry Rank of 50, positioning it in the top 21% 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.
Be sure to use Zacks.com to monitor all these stock-influencing metrics, and more, throughout the forthcoming trading sessions.
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