Yahoo Finance Coca-Cola (KO) Exceeds Market Returns: Some Facts to Consider
The most recent trading session ended with Coca-Cola (KO) standing at $61.55, reflecting a +1.5% shift from the previouse trading day's closing. The stock's change was more than the S&P 500's daily gain of 0.02%. Elsewhere, the Dow saw a downswing of 0.11%, while the tech-heavy Nasdaq appreciated by 0.1%.
The world's largest beverage maker's stock has climbed by 0.17% in the past month, exceeding the Consumer Staples sector's loss of 1.14% and the S&P 500's loss of 3.01%.
Market participants will be closely following the financial results of Coca-Cola in its upcoming release. The company plans to announce its earnings on April 30, 2024. It is anticipated that the company will report an EPS of $0.69, marking a 1.47% rise compared to the same quarter of the previous year. Alongside, our most recent consensus estimate is anticipating revenue of $10.95 billion, indicating a 0.29% downward movement from the same quarter last year.
For the full year, the Zacks Consensus Estimates project earnings of $2.81 per share and a revenue of $45.7 billion, demonstrating changes of +4.46% and -0.12%, respectively, from the preceding year.
Any recent changes to analyst estimates for Coca-Cola should also be noted by investors. These revisions help to show the ever-changing nature of near-term business trends. As a result, we can interpret positive estimate revisions as a good sign for the company's business outlook.
Empirical research indicates that these revisions in estimates have a direct correlation with impending stock price performance. To exploit this, we've formed the Zacks Rank, a quantitative model that includes these estimate changes and presents a viable 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 0.03% lower within the past month. As of now, Coca-Cola holds a Zacks Rank of #3 (Hold).
Valuation is also important, so investors should note that Coca-Cola has a Forward P/E ratio of 21.56 right now. This valuation marks a premium compared to its industry's average Forward P/E of 18.53.
Meanwhile, KO's PEG ratio is currently 3.46. Comparable to the widely accepted P/E ratio, the PEG ratio also accounts for the company's projected earnings growth. The average PEG ratio for the Beverages - Soft drinks industry stood at 2.42 at the close of the market yesterday.
The Beverages - Soft drinks industry is part of the Consumer Staples sector. This group has a Zacks Industry Rank of 75, putting it in the top 30% of all 250+ industries.
The Zacks Industry Rank assesses the strength of our separate industry groups by calculating the average Zacks Rank of the individual stocks contained 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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CocaCola Company (The) (KO) : Free Stock Analysis Report
