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Coca-Cola (KO) Gains As Market Dips: What You Should Know

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Coca-Cola (KO) closed the most recent trading day at $60.90, moving +0.59% from the previous trading session. The stock outpaced the S&P 500's daily loss of 1.42%. Meanwhile, the Dow lost 0.49%, and the Nasdaq, a tech-heavy index, lost 0.47%.

Coming into today, shares of the world's largest beverage maker had gained 4.27% in the past month. In that same time, the Consumer Staples sector gained 4.57%, while the S&P 500 gained 0.39%.

Wall Street will be looking for positivity from Coca-Cola as it approaches its next earnings report date. On that day, Coca-Cola is projected to report earnings of $0.40 per share, which would represent a year-over-year decline of 14.89%. Meanwhile, our latest consensus estimate is calling for revenue of $8.94 billion, up 3.77% from the prior-year quarter.

Any recent changes to analyst estimates for Coca-Cola should also be noted by investors. Recent revisions tend to reflect the latest near-term business trends. With this in mind, we can consider positive estimate revisions a sign of optimism about the company's business outlook.

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. The Zacks Consensus EPS estimate has moved 0.64% lower within the past month. Coca-Cola is currently a Zacks Rank #3 (Hold).

Investors should also note Coca-Cola's current valuation metrics, including its Forward P/E ratio of 25.13. For comparison, its industry has an average Forward P/E of 22.56, which means Coca-Cola is trading at a premium to the group.

Also, we should mention that KO has a PEG ratio of 3.13. 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. KO's industry had an average PEG ratio of 2.31 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 184, 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.

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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