Analytical Review of the Stocks of Coca-Cola

Analytical Review of the Stocks of Coca-Cola

10 April 2016, 15:57
Roberto Jacobs
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Analytical Review of the Stocks of Coca-Cola

The Coca-Cola Company, #KO [NYSE]
Consumer goods, Drinks – Free of alcohol drinks, USA

Financial performance of the company:

Index – DJIA, S&P 500;
Beta – 0.49;
Capitalization – 185.05 В;
Return of asset - 7.50%;
Income - 10.81 B;
Average volume – 14.76 М;
P/E - 27.28;
ATR – 0.73.

Analytical review:

  • Since the beginning of March the company’s shares has grown by over 6.5%. It is expected that the rise in quotes will continue.
  • The company ranks the fourth on capitalization in the sector of consumer goods among the issuers traded in the American stock market.
  • According to the report for Q4 of the fiscal year 2015, the company’s revenue fell by 7% to 10 billion USD. Nevertheless, net profit of the company increased by 60% up to billion USD. EPS has grown by over 60% up to 0.28 USD.
  • The company has the highest return on equity among competitors. Return on equity amounted to 12.04%. Return on investment was over 26%. Average indicators in the industry is 4.92% and 8.43% respectively”.
  • Over 60% of the company’s shares belong to the institutional funds. The most part of shares belong to Berkshire Hathaway (9.24%) and Vanguard Group (6.05%).
  • Most of the large investment funds and banks (UBS, RBC Capital, Barclays) believe that the price of stocks will rise up to 52 USD.


Summary:

  • Company’s report for Q4 of the fiscal year 2015 showed that management of the company is on the right track. The company has strong growth potential.
  • Despite pressure from strong USD the company showed significant rise in net profit.
  • Most shares of Coca-Cola Company belong to institutional funds. Large investment funds predict positive dynamics of the company’s shares.
  • It is likely that in the near future company’s quotes will go up.


Trading tips for CFD of Coca-Cola Company

Medium-term trading: the moment the issuer is traded in the demand zone of 45.85-46.25 USD. If the price maintains this zone and in case of the respective confirmation (such as pattern Price Action), we recommend to open long positions. Risk per trade is not more than 2% of the capital. Stop order can be placed slightly below the signal line. Take profit can be placed in parts at the levels of 46.90 USD, 48.50 USD and 49.50 USD with the use of trailing stop.


s0804KOH1.png


Short-term trading: on the chart with the timeframe 15M the issuer is traded between the local support and resistance levels of 45.85 - 46.35 USD. It is recommend to open positions near the signal line and the nearest support/resistance levels. . Risk per trade is not more than 3% of the capital. Stop order can be placed slightly above/below the signal line. Take profit can be placed in parts of 50%, 30% and 20% with the use of trailing stop.


k0804KOM15.png


The material has been provided by LiteForex - Finance Services Company - www.liteforex.com

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