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

Coca-Cola (KO) closed the most recent trading day at $55.48, moving -0.89% from the previous trading session. This change lagged the S&P 500's daily gain of 0.01%. At the same time, the Dow lost 0.22%, and the tech-heavy Nasdaq gained 0.67%.

Heading into today, shares of the world's largest beverage maker had lost 5.61% over the past month, outpacing the Consumer Staples sector's loss of 6.35% and lagging the S&P 500's loss of 4.45% in that time.

Investors will be hoping for strength from Coca-Cola as it approaches its next earnings release, which is expected to be October 24, 2023. In that report, analysts expect Coca-Cola to post earnings of $0.69 per share. This would mark no growth from the prior-year quarter. Meanwhile, our latest consensus estimate is calling for revenue of $11.48 billion, up 3.78% from the prior-year quarter.

For the full year, our Zacks Consensus Estimates are projecting earnings of $2.63 per share and revenue of $45.01 billion, which would represent changes of +6.05% and +4.68%, respectively, from the prior year.

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Investors should also note any recent changes to analyst estimates for Coca-Cola. 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. Investors can capitalize on this by using the Zacks Rank. This model considers these estimate changes and provides a simple, 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. The Zacks Consensus EPS estimate remained stagnant within the past month. Coca-Cola is holding a Zacks Rank of #2 (Buy) right now.

Valuation is also important, so investors should note that Coca-Cola has a Forward P/E ratio of 21.25 right now. This valuation marks a premium compared to its industry's average Forward P/E of 20.73.

Meanwhile, KO's PEG ratio is currently 3.28. 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. Beverages - Soft drinks stocks are, on average, holding a PEG ratio of 2.39 based on yesterday's closing prices.

The Beverages - Soft drinks industry is part of the Consumer Staples sector. This industry currently has a Zacks Industry Rank of 46, which puts it in the top 19% 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.

To follow KO in the coming trading sessions, be sure to utilize Zacks.com.

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CocaCola Company (The) (KO) : Free Stock Analysis Report

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Zacks Investment Research