Coca-Cola (KO) Laps the Stock Market: Here's Why

Coca-Cola (KO) closed the most recent trading day at $69.74, moving +1.31% from the previous trading session. This change outpaced the S&P 500's 0.96% gain on the day. Elsewhere, the Dow saw an upswing of 0.89%, while the tech-heavy Nasdaq appreciated by 0.94%. Heading into today, shares of the world's largest beverage maker had lost 4.08% over the past month, lagging the Consumer Staples sector's loss of 1.5% and the S&P 500's gain of 0.5%.The investment community will be paying close attention to the earnings performance of Coca-Cola in its upcoming release. The company is slated to reveal its earnings on July 22, 2025. On that day, Coca-Cola is projected to report earnings of $0.83 per share, which would represent a year-over-year decline of 1.19%. At the same time, our most recent consensus estimate is projecting a revenue of $12.61 billion, reflecting a 1.99% rise from the equivalent quarter last year. For the full year, the Zacks Consensus Estimates project earnings of $2.97 per share and a revenue of $48.25 billion, demonstrating changes of +3.13% and +2.54%, respectively, from the preceding year. Investors should also note any recent changes to analyst estimates for Coca-Cola. Such recent modifications usually signify the changing landscape of near-term business trends. With this in mind, we can consider positive estimate revisions a sign of optimism about the business outlook. Our research reveals that these estimate alterations are directly linked with the stock price performance in the near future. To take advantage of this, we've established the Zacks Rank, an exclusive model that considers these estimated changes and delivers an operational 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. Over the past month, there's been a 0.05% rise in the Zacks Consensus EPS estimate. Currently, Coca-Cola is carrying a Zacks Rank of #3 (Hold). Digging into valuation, Coca-Cola currently has a Forward P/E ratio of 23.22. This valuation marks a premium compared to its industry average Forward P/E of 19.39. It's also important to note that KO currently trades at a PEG ratio of 3.61. The PEG ratio is akin to the commonly utilized P/E ratio, but this measure also incorporates the company's anticipated earnings growth rate. The Beverages - Soft drinks industry had an average PEG ratio of 2.61 as trading concluded yesterday. The Beverages - Soft drinks industry is part of the Consumer Staples sector. At present, this industry carries a Zacks Industry Rank of 91, placing it within the top 37% of over 250 industries. The Zacks Industry Rank assesses the vigor of our specific industry groups by computing the average Zacks Rank of the individual stocks incorporated in the groups. Our research shows that the top 50% rated industries outperform the bottom half by a factor of 2 to 1. Remember to apply Zacks.com to follow these and more stock-moving metrics during the upcoming trading sessions. Don’t Miss Out on These Stocks Before you make your next investing move, we have a free report that highlights the %%CTA_TEXT%% to buy.Our experts at Zacks Investment Research hand-selected these stocks for their eye-opening growth projections.Since 1988, our stock picks have more than doubled the S&P 500 with an average gain of +23.89% per year using the Zacks Rank stock-rating system.Register now to see the %%CTA_TEXT%%.7 best stocksWant the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days. Click to get this free report CocaCola Company (The) (KO): Free Stock Analysis ReportThis article originally published on Zacks Investment Research (zacks.com).Zacks Investment ResearchWeiter zum vollständigen Artikel bei Zacks Weiter zum vollständigen Artikel bei Zacks