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Coca-Cola (KO) Dips More Than Broader Markets: What You Should Know

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Coca-Cola (KO) closed the most recent trading day at $53.61, moving -0.52% from the previous trading session. This move lagged the S&P 500's daily loss of 0.28%.

Prior to today's trading, shares of the world's largest beverage maker had lost 3.16% over the past month. This has lagged the Consumer Staples sector's loss of 1.95% and the S&P 500's loss of 0.56% in that time.

Wall Street will be looking for positivity from KO as it approaches its next earnings report date. In that report, analysts expect KO to post earnings of $0.58 per share. This would mark year-over-year growth of 5.45%. Our most recent consensus estimate is calling for quarterly revenue of $9.63 billion, up 11.3% from the year-ago period.

KO's full-year Zacks Consensus Estimates are calling for earnings of $2.25 per share and revenue of $37.86 billion. These results would represent year-over-year changes of +15.38% and +14.69%, respectively.

Investors should also note any recent changes to analyst estimates for KO. These revisions help to show the ever-changing nature of near-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 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. Within the past 30 days, our consensus EPS projection remained stagnant. KO currently has a Zacks Rank of #3 (Hold).

In terms of valuation, KO is currently trading at a Forward P/E ratio of 23.95. For comparison, its industry has an average Forward P/E of 23.01, which means KO is trading at a premium to the group.

We can also see that KO currently has a PEG ratio of 2.76. The PEG ratio is similar to the widely-used P/E ratio, but this metric also takes the company's expected earnings growth rate into account. The Beverages - Soft drinks industry currently had an average PEG ratio of 2.4 as of yesterday's close.

The Beverages - Soft drinks industry is part of the Consumer Staples sector. This industry currently has a Zacks Industry Rank of 126, which puts it in the top 50% 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.

You can find more information on all of these metrics, and much more, on Zacks.com.


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