Coca-Cola FEMSA (KOF) is on the Move, Here's Why the Trend Could be Sustainable
The trend often reverses before exiting the trade, leading to a short-term capital loss for investors. So, for a profitable trade, one should confirm factors such as sound fundamentals, positive earnings estimate revisions, etc. that could keep the momentum in the stock alive.
Our "Recent Price Strength" screen, which is created on a unique short-term trading strategy, could be pretty useful in this regard. This predefined screen makes it really easy to shortlist the stocks that have enough fundamental strength to maintain their recent uptrend. Also, the screen passes only the stocks that are trading in the upper portion of their 52-week high-low range, which is usually an indicator of bullishness.
(KOF) is one of the several suitable candidates that passed through the screen. Here are the key reasons why it could be a profitable bet for "trend" investors.
A solid price increase over a period of 12 weeks reflects investors' continued willingness to pay more for the potential upside in a stock. KOF is quite a good fit in this regard, gaining 9.4% over this period.
However, it's not enough to look at the price change for around three months, as it doesn't reflect any trend reversal that might have happened in a shorter time frame. It's important for a potential winner to maintain the price trend. A price increase of 3.1% over the past four weeks ensures that the trend is still in place for the stock of this bottling company.
Moreover, KOF is currently trading at 85.2% of its 52-week High-Low Range, hinting that it can be on the verge of a breakout.
Looking at the fundamentals, the stock currently carries a Zacks Rank #2 (Buy), which means it is in the top 20% of more than the 4,000 stocks that we rank based on trends in earnings estimate revisions and EPS surprises -- the key factors that impact a stock's near-term price movements.
The Zacks Rank stock-rating system, which uses four factors related to earnings estimates to classify stocks into five groups, ranging from Zacks Rank #1 (Strong Buy) to Zacks Rank #5 (Strong Sell), has an impressive externally-audited track record, with Zacks Rank #1 stocks generating an average annual return of +25% since 1988. You can see the complete list of today's Zacks Rank #1 (Strong Buy) stocks here >>>>
Another factor that confirms the company's fundamental strength is its Average Broker Recommendation of #1 (Strong Buy). This indicates that the brokerage community is highly optimistic about the stock's near-term price performance.
So, the price trend in KOF may not reverse anytime soon.
In addition to KOF, there are several other stocks that currently pass through our "Recent Price Strength" screen. You may consider investing in them and start looking for the newest stocks that fit these criteria.
This is not the only screen that could help you find your next winning stock pick. Based on your personal investing style, you may choose from over 45 Zacks Premium Screens that are strategically created to beat the market.
However, keep in mind that the key to a successful stock-picking strategy is to ensure that it produced profitable results in the past. You could easily do that with the help of the Zacks Research Wizard. In addition to allowing you to backtest the effectiveness of your strategy, the program comes loaded with some of our most successful stock-picking strategies.
Click here to sign up for a free trial to the Research Wizard today.
Want 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
Coca Cola Femsa S.A.B. de C.V. (KOF) : Free Stock Analysis Report
This article originally published on Zacks Investment Research (zacks.com).
Zacks Investment Research
Try Our AI Features
Explore what Daily8 AI can do for you:
Comments
No comments yet...
Related Articles
Yahoo
2 hours ago
- Yahoo
Novo Nordisk Before Q2 Earnings: How Should Investors Play the Stock?
Novo Nordisk NVO is scheduled to report its second-quarter 2025 results before the opening bell on Aug. 6, 2025. The Zacks Consensus Estimate for quarterly revenues in the to-be-reported quarter is pegged at $11.79 billion, while the same for earnings is pinned at 93 cents per share. In the past 60 days, the Zacks Consensus Estimate for Novo Nordisk's 2025 earnings per share (EPS) improved from $3.84 to $3.86. During the same time frame, the company's 2026 EPS forecast has dropped from $4.64 to $4.20. NVO Estimate Movement Image Source: Zacks Investment Research NVO's Earnings Surprise History Novo Nordisk's performance has been mixed over the trailing four quarters, with earnings beating estimates in one quarter, matching once and missing the mark on the remaining two occasions. On average, Novo Nordisk registered an earnings surprise of 0.02% in the trailing four quarters. In the last reported quarter, the company reported EPS that matched estimates. Image Source: Zacks Investment Research What Does Our Model Say? Novo Nordisk has an Earnings ESP of +0.22% and a Zacks Rank #4 (Sell) at present. You can see the complete list of today's Zacks #1 Rank (Strong Buy) stocks here. Per our proven model, companies with the combination of a positive Earnings ESP and a Zacks Rank #1, #2 (Buy) or #3 (Hold) have a good chance of delivering an earnings beat, which is not the case for NVO. You can uncover the best stocks to buy or sell before they're reported with our Earnings ESP Filter. Factors Shaping NVO's Upcoming Results Novo Nordisk operates under two segments — Diabetes and Obesity Care and Rare disease. Novo Nordisk reported preliminary earnings per American Depositary Receipt of 91 cents (DKK 5.96) for the second quarter of 2025. During the same period, the company's sales increased 18% at constant exchange rate (CER). On the other hand, operating profit increased 40% at CER in the second quarter of 2025, primarily driven by the ocedurenone impairment charge recognized in the year-ago period. Novo Nordisk's revenues are expected to have been driven by the sale of its diabetes and obesity treatments, particularly semaglutide-based drugs — Wegovy, Ozempic, and Rybelsus. Wegovy is the largest contributor to the company's top line. Its label has also been expanded for cardiovascular benefits in the United States and the EU. Ozempic and Rybelsus sales are also likely to have contributed meaningfully, along with solid insulin product sales. Additionally, the Rare Disease segment is expected to have generated incremental revenues for the company. Novo Nordisk shares tumbled last week after the company slashed its 2025 guidance for both sales and operating profit growth. It now expects sales to increase 8-14%, down from the previous 13-21% range, and operating profit to grow 10-16% compared to the earlier 16-24% estimate. The revision reflects weaker-than-anticipated momentum for key drugs Wegovy and Ozempic, particularly in the U.S. market, where Wegovy is struggling with the continued use of unregulated, compounded GLP-1 alternatives. Despite the FDA ending its compounding grace period in May 2025, illegal semaglutide sales persist under the guise of 'personalized medicine,' prompting NVO to take legal and regulatory action. The company also cited slower-than-expected Wegovy uptake across both insured and cash-pay channels, limited by modest market expansion and growing competition. While efforts through NovoCare and telehealth have spurred some growth, overall adoption remains below expectations. Ozempic is similarly seeing increased competitive pressure in the U.S. diabetes market. International Wegovy rollouts are underway, but demand in certain regions has been slower than projected. On the profit front, Novo Nordisk's lower operating profit outlook is tied to reduced sales expectations, though partially cushioned by cost controls. The updated forecast also reflects a mid-single-digit drag from its acquisition of three Catalent manufacturing sites. NVO's Stock Price & Valuation Year to date, Novo Nordisk shares have lost 44% compared with the industry's 5% decline. The company has also underperformed the sector and the S&P 500 during the same time frame, as seen in the chart below. NVO Stock Underperforms the Industry, Sector & the S&P 500 Image Source: Zacks Investment Research Novo Nordisk is trading at a discount to the industry, as seen in the chart below. Going by the price/earnings ratio, the company's shares currently trade at 11.87 forward earnings, which is lower than 14.28 for the industry. The stock is also trading much below its five-year mean of 29.25. NVO Stock Valuation Image Source: Zacks Investment Research Investment Thesis Novo Nordisk's stock decline in 2025 has been driven by a mix of regulatory setbacks, underwhelming pipeline results, and rising competitive pressure. The company reported weaker-than-expected data from two late-stage studies of CagriSema, its next-generation obesity drug, dampening hopes for a strong follow-up to Wegovy. In addition, Medicare's refusal to cover weight-loss drugs like Wegovy — since obesity is not classified as a disease — has raised concerns over patient access. The situation is further complicated by an ongoing leadership change, with CEO Lars Fruergaard Jørgensen stepping down amid market headwinds and stock underperformance. Moreover, Novo Nordisk faces intense competition from its arch-rival Eli Lilly LLY in the diabetes and obesity care market. LLY markets its tirzepatide injections as Mounjaro for type II diabetes (T2D) and Zepbound for obesity. Despite being on the market for less than three years, Lilly's Mounjaro and Zepbound have witnessed strong sales driven by rapid demand. Zepbound had earlier outperformed Novo Nordisk's Wegovy (20.2% compared with 13.7%, respectively) in a weight-loss head-to-head study. This could lead to a shift in patient preference from Wegovy to Zepbound, potentially resulting in a loss of market share. Lilly has also been taking significant strides in the development of oral therapies for obesity, effectively putting pressure on Novo Nordisk. In April 2025, LLY reported first phase III success for its oral GLP-1 candidate, orforglipron, in lowering blood glucose and promoting weight loss in T2D patients. Oral pills could boost adherence over injections. Several other companies like Amgen AMGN and Viking Therapeutics VKTX are also making rapid progress in the development of GLP-1-based candidates in their clinical pipeline. Amgen has begun a broad phase III program on its dual GIPR/GLP-1 receptor agonist, MariTide, across obesity, obesity-related conditions and T2D, with the first two phase III studies initiated in March. Viking Therapeutics started two late-stage studies evaluating the subcutaneous formulation of its investigational obesity drug, VK2735. A mid-stage study is currently ongoing, evaluating an oral version of this obesity drug, with a data readout expected later this year. Additionally, NVO recently ended its collaboration agreement with Hims & Hers Health, which will temporarily hurt its objective of increasing Wegovy's patient access, resulting in a slowdown in obesity market share gain. Furthermore, the presence of compounded versions of Wegovy in NVO's largest obesity market, the United States, is weighing in on the sales potential of the drug, eating away at its revenues. Despite recent setbacks, Novo Nordisk is making steady progress across its pipeline. The company is advancing new candidates for T2D and obesity, while also working to expand the approved uses of Wegovy, Ozempic and Rybelsus to drive further growth. Efforts to develop next-generation obesity drugs could help diversify its portfolio. Beyond metabolic diseases, NVO is also building out its rare disease segment, with late-stage progress on Mim8 for hemophilia A and recent FDA approval of a broader label for its Alhemo injection for hemophilia A or B with/without inhibitors, further strengthening its position in the hemophilia space. Here's How to Play NVO Stock Amid growing challenges, we believe investors might want to reduce their exposure to Novo Nordisk, regardless of how its second-quarter results turn out. While the company is still seeing solid demand and revenue growth from its semaglutide-based drugs, it recently cut its 2025 sales and profit forecast due to slowing momentum in key markets. In the United States, sales of Wegovy and Ozempic are being hurt by the continued use of compounded versions, even after FDA restrictions. At the same time, rival Eli Lilly is gaining ground with its competing drugs, Zepbound and Mounjaro, which have shown stronger clinical results and are quickly gaining market share, putting pressure on Novo Nordisk's core business. Adding to the headwinds, the stock has underperformed significantly in 2025 and now trades at a steep discount to both its historical average and the broader industry. Disappointing data from CagriSema studies and a major CEO transition amid a turbulent period have further shaken investor confidence. While the long-term potential in obesity and rare diseases remains, heightened volatility, pipeline disappointments, legal and regulatory challenges, and a crowded GLP-1 development landscape suggest that the near-term risk/reward profile is skewed to the downside. These factors may prompt risk-averse investors to consider exiting their position or limiting exposure until clearer visibility emerges. Want 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 Novo Nordisk A/S (NVO) : Free Stock Analysis Report Eli Lilly and Company (LLY) : Free Stock Analysis Report Amgen Inc. (AMGN) : Free Stock Analysis Report Viking Therapeutics, Inc. (VKTX) : Free Stock Analysis Report This article originally published on Zacks Investment Research ( Zacks Investment Research Error in retrieving data Sign in to access your portfolio Error in retrieving data Error in retrieving data Error in retrieving data Error in retrieving data
Yahoo
3 hours ago
- Yahoo
BCKIY or STRL: Which Is the Better Value Stock Right Now?
Investors interested in stocks from the Engineering - R and D Services sector have probably already heard of Babcock International Group PLC (BCKIY) and Sterling Infrastructure (STRL). But which of these two stocks is more attractive to value investors? We'll need to take a closer look to find out. We have found that the best way to discover great value opportunities is to pair a strong Zacks Rank with a great grade in the Value category of our Style Scores system. The proven Zacks Rank puts an emphasis on earnings estimates and estimate revisions, while our Style Scores work to identify stocks with specific traits. Currently, Babcock International Group PLC has a Zacks Rank of #2 (Buy), while Sterling Infrastructure has a Zacks Rank of #3 (Hold). The Zacks Rank favors stocks that have recently seen positive revisions to their earnings estimates, so investors should rest assured that BCKIY has an improving earnings outlook. But this is just one piece of the puzzle for value investors. Value investors also try to analyze a wide range of traditional figures and metrics to help determine whether a company is undervalued at its current share price levels. Our Value category grades stocks based on a number of key metrics, including the tried-and-true P/E ratio, the P/S ratio, earnings yield, and cash flow per share, as well as a variety of other fundamentals that value investors frequently use. BCKIY currently has a forward P/E ratio of 17.68, while STRL has a forward P/E of 30.57. We also note that BCKIY has a PEG ratio of 0.63. This popular figure is similar to the widely-used P/E ratio, but the PEG ratio also considers a company's expected EPS growth rate. STRL currently has a PEG ratio of 2.04. Another notable valuation metric for BCKIY is its P/B ratio of 8.53. The P/B ratio is used to compare a stock's market value with its book value, which is defined as total assets minus total liabilities. For comparison, STRL has a P/B of 9.68. These metrics, and several others, help BCKIY earn a Value grade of B, while STRL has been given a Value grade of D. BCKIY has seen stronger estimate revision activity and sports more attractive valuation metrics than STRL, so it seems like value investors will conclude that BCKIY is the superior option right now. Want 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 Babcock International Group PLC (BCKIY) : Free Stock Analysis Report Sterling Infrastructure, Inc. (STRL) : Free Stock Analysis Report This article originally published on Zacks Investment Research ( Zacks Investment Research
Yahoo
4 hours ago
- Yahoo
Is Applied Materials (AMAT) Stock Outpacing Its Computer and Technology Peers This Year?
For those looking to find strong Computer and Technology stocks, it is prudent to search for companies in the group that are outperforming their peers. Has Applied Materials (AMAT) been one of those stocks this year? Let's take a closer look at the stock's year-to-date performance to find out. Applied Materials is one of 606 companies in the Computer and Technology group. The Computer and Technology group currently sits at #5 within the Zacks Sector Rank. The Zacks Sector Rank considers 16 different groups, measuring the average Zacks Rank of the individual stocks within the sector to gauge the strength of each group. The Zacks Rank emphasizes earnings estimates and estimate revisions to find stocks with improving earnings outlooks. This system has a long record of success, and these stocks tend to be on track to beat the market over the next one to three months. Applied Materials is currently sporting a Zacks Rank of #2 (Buy). The Zacks Consensus Estimate for AMAT's full-year earnings has moved 1.2% higher within the past quarter. This signals that analyst sentiment is improving and the stock's earnings outlook is more positive. Based on the most recent data, AMAT has returned 10.7% so far this year. In comparison, Computer and Technology companies have returned an average of 9.1%. This shows that Applied Materials is outperforming its peers so far this year. Adyen N.V. Unsponsored ADR (ADYEY) is another Computer and Technology stock that has outperformed the sector so far this year. Since the beginning of the year, the stock has returned 14.7%. Over the past three months, Adyen N.V. Unsponsored ADR's consensus EPS estimate for the current year has increased 2.3%. The stock currently has a Zacks Rank #2 (Buy). Breaking things down more, Applied Materials is a member of the Electronics - Semiconductors industry, which includes 44 individual companies and currently sits at #92 in the Zacks Industry Rank. On average, this group has gained an average of 15.1% so far this year, meaning that AMAT is slightly underperforming its industry in terms of year-to-date returns. On the other hand, Adyen N.V. Unsponsored ADR belongs to the Internet - Software industry. This 174-stock industry is currently ranked #79. The industry has moved +17.6% year to date. Investors interested in the Computer and Technology sector may want to keep a close eye on Applied Materials and Adyen N.V. Unsponsored ADR as they attempt to continue their solid performance. Want 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 Applied Materials, Inc. (AMAT) : Free Stock Analysis Report Adyen N.V. Unsponsored ADR (ADYEY) : Free Stock Analysis Report This article originally published on Zacks Investment Research ( Zacks Investment Research Error in retrieving data Sign in to access your portfolio Error in retrieving data Error in retrieving data Error in retrieving data Error in retrieving data
