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The most recent trading session ended with Coca-Cola (KO) standing at $69.28, reflecting a -0.14% shift from the previouse trading day's closing. The stock fell short of the S&P 500, which registered a gain of 1.08% for the day. Elsewhere, the Dow saw an upswing of 0.92%, while the tech-heavy Nasdaq appreciated by 1.41%.
The the stock of world's largest beverage maker has risen by 0.48% in the past month, lagging the Consumer Staples sector's gain of 3.42% and overreaching the S&P 500's loss of 8.26%.
The upcoming earnings release of Coca-Cola will be of great interest to investors. On that day, Coca-Cola is projected to report earnings of $0.72 per share, which would represent no growth from the prior-year quarter. Meanwhile, the latest consensus estimate predicts the revenue to be $11.15 billion, indicating a 1.28% decrease compared to the same quarter of the previous year.
KO's full-year Zacks Consensus Estimates are calling for earnings of $2.96 per share and revenue of $47.98 billion. These results would represent year-over-year changes of +2.78% and +1.94%, respectively.
It is also important to note the recent changes to analyst estimates for Coca-Cola. These latest adjustments often mirror the shifting dynamics of short-term business patterns. With this in mind, we can consider positive estimate revisions a sign of optimism about the company's business outlook.
Empirical research indicates that these revisions in estimates have a direct correlation with impending stock price performance. To capitalize on this, we've crafted the Zacks Rank, a unique model that incorporates these estimate changes and offers a practical rating system.
The Zacks Rank system, running from #1 (Strong Buy) to #5 (Strong Sell), holds an admirable track record of superior performance, independently audited, with #1 stocks contributing an average annual return of +25% since 1988. Within the past 30 days, our consensus EPS projection remained stagnant. Coca-Cola is currently a Zacks Rank #3 (Hold).
In terms of valuation, Coca-Cola is currently trading at a Forward P/E ratio of 23.46. This expresses a premium compared to the average Forward P/E of 18.98 of its industry.
One should further note that KO currently holds a PEG ratio of 3.75. The PEG ratio bears resemblance to the frequently used P/E ratio, but this parameter also includes the company's expected earnings growth trajectory. The Beverages - Soft drinks was holding an average PEG ratio of 2.59 at yesterday's closing price.
The Beverages - Soft drinks industry is part of the Consumer Staples sector. This industry, currently bearing a Zacks Industry Rank of 84, finds itself in the top 34% echelons of all 250+ industries.