Coca-Cola FEMSA (KOF) Stock Sinks As Market Gains: What You Should Know

In the latest trading session, Coca-Cola FEMSA (KOF) closed at $64.22, marking a -0.39% move from the previous day. This change lagged the S&P 500's daily gain of 0.47%. Meanwhile, the Dow gained 0.4%, and the Nasdaq, a tech-heavy index, added 0.87%.

Coming into today, shares of the bottling company had gained 4.02% in the past month. In that same time, the Consumer Staples sector lost 0.73%, while the S&P 500 gained 1.43%.

Wall Street will be looking for positivity from KOF as it approaches its next earnings report date. This is expected to be February 26, 2020. In that report, analysts expect KOF to post earnings of $1.01 per share. This would mark year-over-year growth of 44.29%. Meanwhile, the Zacks Consensus Estimate for revenue is projecting net sales of $2.68 billion, up 5.87% from the year-ago period.

Any recent changes to analyst estimates for KOF should also be noted by investors. 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.

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, 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. Within the past 30 days, our consensus EPS projection has moved 2.06% higher. KOF currently has a Zacks Rank of #2 (Buy).

Valuation is also important, so investors should note that KOF has a Forward P/E ratio of 17.38 right now. Its industry sports an average Forward P/E of 21.22, so we one might conclude that KOF is trading at a discount comparatively.

Meanwhile, KOF's PEG ratio is currently 1.9. 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. KOF's industry had an average PEG ratio of 2.28 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 55, putting it in the top 22% 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.

Make sure to utilize Zacks. Com to follow all of these stock-moving metrics, and more, in the coming trading sessions.

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