Vita Coco Company, Inc. (COCO) Stock Sinks As Market Gains: Here's Why

Company Performance - Vita Coco Company, Inc. (COCO) closed at $33.98, reflecting a -0.09% change from the previous day, underperforming the S&P 500's gain of 0.16% [1] - The stock has decreased by 8.21% over the past month, compared to a 5.71% loss in the Consumer Staples sector and a 2.7% loss in the S&P 500 [1] Earnings Projections - The upcoming earnings report for Vita Coco is projected to show an EPS of $0.08, indicating a 27.27% decline from the same quarter last year [2] - Revenue is expected to reach $122.28 million, representing a 15.21% increase from the previous year [2] Analyst Estimates - Recent adjustments to analyst estimates for Vita Coco reflect changing short-term business trends, with upward revisions indicating positive sentiment towards the company's operations [3] - The Zacks Rank system, which incorporates these estimate changes, currently ranks Vita Coco at 2 (Buy) [5] Valuation Metrics - Vita Coco has a Forward P/E ratio of 29.29, which is higher than the industry average of 16.96 [6] - The company's PEG ratio stands at 2.05, compared to the Beverages - Soft drinks industry's average PEG ratio of 2.25 [6] Industry Context - The Beverages - Soft drinks industry, part of the Consumer Staples sector, holds a Zacks Industry Rank of 91, placing it in the top 37% of over 250 industries [7] - Strong industry rankings correlate with better stock performance, with the top 50% of rated industries outperforming the bottom half by a factor of 2 to 1 [7]