In the latest trading session, Coca-Cola (KO) closed at $62.94, marking a -0.32% move from the previous day. This move was narrower than the S&P 500’s daily loss of 1.15%. At the same time, the Dow lost 0.52%, and the tech-heavy Nasdaq lost 0.34%.
Prior to today’s trading, shares of the world’s largest beverage maker had gained 2.82% over the past month. This has outpaced the Consumer Staples sector’s loss of 1.02% and the S&P 500’s loss of 5.08% in that time.
Investors will be hoping for strength from Coca-Cola as it approaches its next earnings release, which is expected to be July 26, 2022. On that day, Coca-Cola is projected to report earnings of $0.67 per share, which would represent a year-over-year decline of 1.47%. Our most recent consensus estimate is calling for quarterly revenue of $10.79 billion, up 6.57% from the year-ago period.
KO’s full-year Zacks Consensus Estimates are calling for earnings of $2.46 per share and revenue of $42.03 billion. These results would represent year-over-year changes of +6.03% and +8.73%, respectively.
Investors might also notice recent changes to analyst estimates for Coca-Cola. These revisions help to show the ever-changing nature of 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. We developed the Zacks Rank to capitalize on this phenomenon. Our system takes these estimate changes into account and delivers a clear, actionable rating model.
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. The Zacks Consensus EPS estimate has moved 0.2% lower within the past month. Coca-Cola is currently sporting a Zacks Rank of #3 (Hold).
Investors should also note Coca-Cola’s current valuation metrics, including its Forward P/E ratio of 25.67. This represents a premium compared to its industry’s average Forward P/E of 21.4.
Also, we should mention that KO has a PEG ratio of 3.67. 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. The Beverages – Soft drinks industry currently had an average PEG ratio of 2.7 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 182, putting it in the bottom 28% 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.
Be sure to follow all of these stock-moving metrics, and many more, on Zacks.com.
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