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Coca-Cola (KO) closed the most recent trading day at $62.84, moving +0.74% from the previous trading session. The stock fell short of the S&P 500, which registered a gain of 1.1% for the day. Meanwhile, the Dow gained 0.91%, and the Nasdaq, a tech-heavy index, added 1.35%.
The the stock of world's largest beverage maker has fallen by 3.11% in the past month, leading the Consumer Staples sector's loss of 4.15% and undershooting the S&P 500's gain of 0.22%.
The investment community will be paying close attention to the earnings performance of Coca-Cola in its upcoming release. The company's upcoming EPS is projected at $0.52, signifying a 6.12% increase compared to the same quarter of the previous year. Meanwhile, the Zacks Consensus Estimate for revenue is projecting net sales of $10.72 billion, down 1.21% from the year-ago period.
For the full year, the Zacks Consensus Estimates are projecting earnings of $2.85 per share and revenue of $46.24 billion, which would represent changes of +5.95% and +1.05%, respectively, from the prior year.
It's also important for investors to be aware of any recent modifications to analyst estimates for Coca-Cola. Such recent modifications usually signify the changing landscape of near-term business trends. Therefore, positive revisions in estimates convey analysts' confidence in the company's business performance and profit potential.
Our research shows that these estimate changes are directly correlated with near-term stock prices. To utilize this, we have created the Zacks Rank, a proprietary model that integrates these estimate changes and provides a functional 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. Within the past 30 days, our consensus EPS projection has moved 0.04% higher. Coca-Cola is currently sporting a Zacks Rank of #3 (Hold).
In the context of valuation, Coca-Cola is at present trading with a Forward P/E ratio of 21.87. This indicates a premium in contrast to its industry's Forward P/E of 18.24.
We can also see that KO currently has a PEG ratio of 3.55. Comparable to the widely accepted P/E ratio, the PEG ratio also accounts for the company's projected earnings growth. As of the close of trade yesterday, the Beverages - Soft drinks industry held an average PEG ratio of 2.62.
The Beverages - Soft drinks industry is part of the Consumer Staples sector. Currently, this industry holds a Zacks Industry Rank of 167, positioning it in the bottom 34% of all 250+ industries.