In the latest trading session, Coca-Cola FEMSA (KOF) closed at $84.27, marking a -0.98% move from the previous day. Meanwhile, the Dow lost 0.15%, and the Nasdaq, a tech-heavy index, lost 2.33%.
Coming into today, shares of the bottling company had gained 1.65% in the past month. In that same time, the Consumer Staples sector lost 5.39%, while the S&P 500 gained 1.03%.
Investors will be hoping for strength from Coca-Cola FEMSA as it approaches its next earnings release. On that day, Coca-Cola FEMSA is projected to report earnings of $1.28 per share, which would represent year-over-year growth of 16.36%. Meanwhile, the Zacks Consensus Estimate for revenue is projecting net sales of $3.22 billion, up 12.43% from the year-ago period.
Looking at the full year, our Zacks Consensus Estimates suggest analysts are expecting earnings of $5.05 per share and revenue of $12.8 billion. These totals would mark changes of +11.97% and +13.4%, respectively, from last year.
It is also important to note the recent changes to analyst estimates for Coca-Cola FEMSA. Recent revisions tend to reflect the latest near-term business trends. As such, positive estimate revisions reflect analyst optimism about the company's business and profitability.
Based on our research, we believe these estimate revisions are directly related to near-team stock moves. To benefit from this, we have developed the Zacks Rank, a proprietary model which takes these estimate changes into account and provides an actionable 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. Over the past month, the Zacks Consensus EPS estimate remained stagnant. Coca-Cola FEMSA is currently sporting a Zacks Rank of #3 (Hold).
In terms of valuation, Coca-Cola FEMSA is currently trading at a Forward P/E ratio of 16.87. This represents a discount compared to its industry's average Forward P/E of 22.35.
Investors should also note that KOF has a PEG ratio of 1.25 right now. 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. KOF's industry had an average PEG ratio of 2.47 as of yesterday's close.
The Beverages - Soft drinks industry is part of the Consumer Staples sector. This group has a Zacks Industry Rank of 46, putting it in the top 19% of all 250+ industries.
The Zacks Industry Rank gauges the strength of our industry groups by measuring the average Zacks Rank of the individual stocks within the groups. Our research shows that the top 50% rated industries outperform the bottom half by a factor of 2 to 1.
Be sure to follow all of these stock-moving metrics, and many more, on Zacks.com.
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