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Vita Coco Company, Inc. (COCO) Stock Slides as Market Rises: Facts to Know Before You Trade

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In the latest trading session, Vita Coco Company, Inc. (COCO - Free Report) closed at $39.26, marking a -7.19% move from the previous day. This change lagged the S&P 500's 0.48% gain on the day. At the same time, the Dow added 0.27%, and the tech-heavy Nasdaq gained 0.94%.

Shares of the company witnessed a gain of 17.76% over the previous month, beating the performance of the Consumer Staples sector with its loss of 1.66%, and the S&P 500's gain of 2.46%.

The investment community will be closely monitoring the performance of Vita Coco Company, Inc. in its forthcoming earnings report. The company is predicted to post an EPS of $0.31, indicating a 3.13% decline compared to the equivalent quarter last year. Meanwhile, the Zacks Consensus Estimate for revenue is projecting net sales of $156.69 million, up 17.89% from the year-ago period.

For the full year, the Zacks Consensus Estimates project earnings of $1.16 per share and a revenue of $580.79 million, demonstrating changes of +8.41% and +12.55%, respectively, from the preceding year.

Investors should also note any recent changes to analyst estimates for Vita Coco Company, Inc. Such recent modifications usually signify the changing landscape of near-term business trends. As a result, upbeat changes in estimates indicate analysts' favorable outlook on the business health and profitability.

Empirical research indicates that these revisions in estimates have a direct correlation with impending stock price performance. 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. Within the past 30 days, our consensus EPS projection remained stagnant. Vita Coco Company, Inc. is holding a Zacks Rank of #3 (Hold) right now.

In terms of valuation, Vita Coco Company, Inc. is presently being traded at a Forward P/E ratio of 36.59. This valuation marks a premium compared to its industry average Forward P/E of 17.59.

One should further note that COCO currently holds a PEG ratio of 2.24. 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 average PEG ratio for the Beverages - Soft drinks industry stood at 2.31 at the close of the market yesterday.

The Beverages - Soft drinks industry is part of the Consumer Staples sector. With its current Zacks Industry Rank of 210, this industry ranks in the bottom 15% of all industries, numbering over 250.

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.

To follow COCO in the coming trading sessions, be sure to utilize Zacks.com.


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