Analytical Review for 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:
- The company ranks the fourth on capitalization in the sector of consumer goods among the issuers traded in the American stock market;
- On 20 April the company issued a report for Q1 of the fiscal year 2016. According to the press-release, company’s revenue fell by 4% to 10.28 billion USD. In the reporting period net profit of the company fell by 5% up 0.45 USD per share. However, company’s financial performance was better than expected by the market, as the forecast of revenue was 10.26 billion. USD and EPS (earnings per share) was 0.44 USD;
- At the press-conference the company said that deterioration in financial performance is associated with pressure from the strong USD and decline in consumption of the fizzy drinks in the USA;
- In the previous quarter volume of sales in European market fell by 1%. Sales in the other regions were positive. In Latin America and in the North America sales rose by 1% and in the Asian region sales increased by 5%;
- The company has increased budget for restructuring in 2016. This fiscal year the company plans to allocate over 2.5 billion USD for asset repurchase. This plan shows optimistic sentiment of the company’s management;
- Over 60% of the company’s shares belong to the institutional funds. Most part of the shares belong to Berkshire Hathaway (9.24%) and Vanguard Group (6.05%).
Summary:
- Despite the decline in revenue, company’s performance has exceeded market expectations. The company has strong growth potential. Effective implementation of the restructuring plans will improve financial performance of the company. Most part of the company’s shares belongs to institutional funds.
- It is likely that in the near future company’s quotes will go up.
Trading tips for CFD of Coca-Cola Company
Key levels:
Support levels: 42.50 USD and 43.80 USD.
Resistance levels: 44.85 USD, 46.00 USD and 46.90 USD.
Medium-term trading, Н4:
At the moment the issuer is traded in the demand zone of 43.80-44.70 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 45.50 USD, 46.80 USD and 48.00 USD with the use of trailing stop.
Short-term trading, М15:
Currently, the issuer is traded between the local support and resistance levels of 44.10/44.85 USD. It is recommend to enter the market after breaking out and testing of these levels. Positions can be opened 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.
