Coca-Cola (KO – Free Report) closed at $60.81 in the latest trading session, marking a -1.52% move from the prior day. The stock’s performance was behind the S&P 500’s daily gain of 0.55%. At the same time, the Dow lost 0.06%, and the tech-heavy Nasdaq gained 1.24%.
Analysts and investors alike will be keeping a close eye on the performance of Coca-Cola in its upcoming earnings disclosure. On that day, Coca-Cola is projected to report earnings of $0.52 per share, which would represent year-over-year growth of 6.12%. Meanwhile, the Zacks Consensus Estimate for revenue is projecting net sales of $10.72 billion, down 1.21% from the year-ago period.
Investors should also note any recent changes to analyst estimates for Coca-Cola. 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.
Empirical research indicates that these revisions in estimates have a direct correlation with impending stock price performance. To take advantage of this, we’ve established the Zacks Rank, an exclusive model that considers these estimated changes and delivers an operational 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 0.02% lower within the past month. 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 20.89 right now. This denotes a premium relative to the industry’s average Forward P/E of 17.03.
It is also worth noting that KO currently has a PEG ratio of 3.39. This metric is used similarly to the famous P/E ratio, but the PEG ratio also takes into account the stock’s expected earnings growth rate. As of the close of trade yesterday, the Beverages – Soft drinks industry held an average PEG ratio of 2.29.
The Beverages – Soft drinks industry is part of the Consumer Staples sector. Currently, this industry holds a Zacks Industry Rank of 155, positioning it in the bottom 39% of all 250+ industries.
The Zacks Industry Rank assesses the strength of our separate industry groups by calculating the average Zacks Rank of the individual stocks contained within the groups. Our research shows that the top 50% rated industries outperform the bottom half by a factor of 2 to 1.
Remember to apply Zacks.com to follow these and more stock-moving metrics during the upcoming trading sessions.
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