BOSTON ( TheStreet Ratings) -- Coca-Cola ( KO) is scheduled to report second-quarter earnings before the market open on Tuesday, with a big jump in sales expected by Wall Street thanks to a recent acquisition.

Analysts are expecting the soft drink leader to report earnings per share of $1.16, compared with $1.02 a year earlier. Revenue is estimated to increase 42% to $12.4 billion from $8.7 billion based on the inclusion of results from its recent acquisition of Coca Cola Enterprises. Improved pricing and continued volume growth in Latin America, Asia and Eastern Europe should help the bottom line in the second quarter.

The following is taken from a first-quarter report published by TheStreet Ratings, an independent-research unit of TheStreet that uses a quantitative model to evaluate stocks.

The net income growth in the first quarter exceeded that of the Beverages industry average, but is less than that of the S&P 500. The net income increased by 17.7% when compared to the same quarter one year prior, going from $1.6 billion to $1.9 billion.

We rate Coca-Cola a "buy." This is based on the convergence of positive investment measures, which should help this stock outperform the majority of stocks that we rate. Our model maintains a price target of $87 on shares of Coke, indicating the potential for 28% upside from current levels.

>>For upcoming earnings and estimates, see our Earnings Calendar.

The company's strengths can be seen in multiple areas, such as its robust revenue growth, solid stock price performance, notable return on equity, compelling growth in net income and expanding profit margins. We feel these strengths outweigh the fact that the company shows weak operating cash flow.

Current return on equity exceeded its ROE from the same quarter one year prior. This is a clear sign of strength within the company. Compared to other companies in the Beverages industry and the overall market, Coca Cola's return on equity significantly exceeds that of both the industry average and the S&P 500.

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