Why Vita Coco Company, Inc. (COCO) Dipped More Than Broader Market Today

Core Viewpoint - Vita Coco Company, Inc. is experiencing fluctuations in stock performance and is set to report earnings that reflect both growth and challenges in revenue [1][2][3]. Group 1: Stock Performance - The stock closed at $55.00, down 4.45% from the previous day, underperforming the S&P 500's loss of 0.51% [1]. - Over the past month, shares have appreciated by 10.71%, outperforming the Consumer Staples sector's gain of 10.05% and the S&P 500's gain of 0.93% [1]. Group 2: Earnings Forecast - The upcoming earnings report is expected to show an EPS of $0.13, reflecting an 8.33% increase from the same quarter last year [2]. - Revenue is projected at $126.87 million, a decrease of 0.33% compared to the previous year [2]. Group 3: Fiscal Year Estimates - For the entire fiscal year, earnings are estimated at $1.23 per share, indicating a growth of 14.95%, while revenue is expected to remain flat at $608.87 million [3]. - Recent analyst estimate revisions suggest optimism regarding the company's near-term business trends [3]. Group 4: Valuation Metrics - The current Forward P/E ratio for Vita Coco is 36.37, significantly higher than the industry average of 18.66, indicating a premium valuation [6]. - The PEG ratio stands at 1.63, compared to the industry average of 2.13, suggesting a more favorable growth outlook relative to peers [7]. Group 5: Industry Context - The Beverages - Soft drinks industry, which includes Vita Coco, ranks in the bottom 39% of all industries according to the Zacks Industry Rank [7]. - The Zacks Rank system currently rates Vita Coco at 4 (Sell), reflecting a stagnant EPS estimate over the past month [5].