Coca-Cola (KO) closed the most recent trading day at $87.77, moving +2.27% from the previous trading session. The stock outperformed the S&P 500, which registered a daily loss of 0.47%. On the other hand, the Dow registered a gain of 0.1%, and the technology-centric Nasdaq decreased by 1.25%.
The stock of world's largest beverage maker has fallen by 1.98% in the past month, leading the Consumer Staples sector's loss of 4.53% and undershooting the S&P 500's gain of 1.15%.
Investors will be eagerly watching for the performance of Coca-Cola in its upcoming earnings disclosure. The company's earnings report is set to be unveiled on October 27, 2026. The company is forecasted to report an EPS of $0.87, showcasing a 6.1% upward movement from the corresponding quarter of the prior year. At the same time, our most recent consensus estimate is projecting a revenue of $12.91 billion, reflecting a 4.04% rise from the equivalent quarter last year.
In terms of the entire fiscal year, the Zacks Consensus Estimates predict earnings of $3.29 per share and a revenue of $49.81 billion, indicating changes of +9.67% and +4%, respectively, from the former year.
Investors should also pay attention to any latest changes in analyst estimates for Coca-Cola. Recent revisions tend to reflect the latest near-term business trends. Therefore, positive revisions in estimates convey analysts' confidence in the business performance and profit potential.
Our research shows that these estimate changes are directly correlated with near-term stock prices. 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, which varies between #1 (Strong Buy) and #5 (Strong Sell), carries an impressive track record of exceeding expectations, confirmed by external audits, with stocks at #1 delivering an average annual return of +25% since 1988. The Zacks Consensus EPS estimate remained stagnant within the past month. Coca-Cola presently features a Zacks Rank of #2 (Buy).
In terms of valuation, Coca-Cola is presently being traded at a Forward P/E ratio of 26.07. Its industry sports an average Forward P/E of 17.76, so one might conclude that Coca-Cola is trading at a premium comparatively.
It is also worth noting that KO currently has a PEG ratio of 3.34. This popular metric is similar to the widely-known P/E ratio, with the difference being that the PEG ratio also takes into account the company's expected earnings growth rate. The Beverages - Soft drinks industry currently had an average PEG ratio of 1.9 as of yesterday's close.
The Beverages - Soft drinks industry is part of the Consumer Staples sector. This industry currently has a Zacks Industry Rank of 192, which puts it in the bottom 22% of all 250+ industries.
The Zacks Industry Rank is ordered 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.
Remember to apply Zacks.com to follow these and more stock-moving metrics during the upcoming trading sessions.
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CocaCola Company (The) (KO): Free Stock Analysis Report
This article originally published on Zacks Investment Research (zacks.com).