Yahoo Finance Coca-Cola (KO) Stock Drops Despite Market Gains: Important Facts to Note
The latest trading session saw Coca-Cola (KO) ending at $63.92, denoting a -0.03% adjustment from its last day's close. The stock's change was less than the S&P 500's daily gain of 1.19%. On the other hand, the Dow registered a gain of 0.25%, and the technology-centric Nasdaq increased by 1.96%.
The the stock of world's largest beverage maker has risen by 2.11% in the past month, leading the Consumer Staples sector's gain of 0.87% and undershooting the S&P 500's gain of 3.35%.
The investment community will be closely monitoring the performance of Coca-Cola in its forthcoming earnings report. In that report, analysts expect Coca-Cola to post earnings of $0.80 per share. This would mark year-over-year growth of 2.56%. Alongside, our most recent consensus estimate is anticipating revenue of $11.88 billion, indicating a 0.75% downward movement from the same quarter last year.
In terms of the entire fiscal year, the Zacks Consensus Estimates predict earnings of $2.82 per share and a revenue of $45.81 billion, indicating changes of +4.83% and +0.12%, respectively, from the former year.
Furthermore, it would be beneficial for investors to monitor any recent shifts in analyst projections for Coca-Cola. Recent revisions tend to reflect the latest near-term business trends. Therefore, positive revisions in estimates convey analysts' confidence in the company's business performance and profit potential.
Research indicates that these estimate revisions are directly correlated with near-term share price momentum. To utilize this, we have created the Zacks Rank, a proprietary model that integrates these estimate changes and provides a functional rating system.
The Zacks Rank system, ranging from #1 (Strong Buy) to #5 (Strong Sell), possesses a remarkable history of outdoing, externally audited, with #1 stocks returning an average annual gain of +25% since 1988. Over the past month, there's been a 0.02% rise in the Zacks Consensus EPS estimate. Right now, Coca-Cola possesses a Zacks Rank of #3 (Hold).
Digging into valuation, Coca-Cola currently has a Forward P/E ratio of 22.68. This signifies a premium in comparison to the average Forward P/E of 19.35 for its industry.
It is also worth noting that KO currently has a PEG ratio of 3.61. 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. The Beverages - Soft drinks industry currently had an average PEG ratio of 2.84 as of yesterday's close.
The Beverages - Soft drinks industry is part of the Consumer Staples sector. With its current Zacks Industry Rank of 89, this industry ranks in the top 36% of all industries, numbering over 250.
The Zacks Industry Rank is ordered 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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CocaCola Company (The) (KO) : Free Stock Analysis Report
