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The Coca-Cola Company (KO) Strikes $64.80: The Risk Seems Worthwhile At This Price

The Coca-Cola Company (NYSE:KO) price on Thursday, May 26, rose 1.13% above its previous day’s close as an upside momentum from buyers pushed the stock’s value to $64.80.

A look at the stock’s price movement, the level at last check in today’s session was $64.07, moving within a range at $63.60 and $64.475. The beta value (5-Year monthly) was 0.66 while the PE ratio in trailing twelve months stood at 27.02. Turning to its 52-week performance, $67.20 and $52.28 were the 52-week high and 52-week low respectively. Overall, KO moved -1.51% over the past month.

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The Coca-Cola Company’s market cap currently stands at around $273.28 billion, with investors looking forward to this quarter’s earnings report slated for Apr 18, 2022 – Apr 22, 2022. The company has a Forward Dividend ratio of 1.76, with its dividend yield at 2.75%. As such, investors might be keen on an upside in the stock’s price ahead of the scheduled earnings report. Analysts project the company’s earnings per share (EPS) to be $0.67, which has seen fiscal year 2022 EPS growth forecast to increase to $2.47 and about $2.64 for fiscal year 2023. Per the data, EPS growth is expected to be 6.50% for 2022 and 6.90% for the next financial year.

Analysts have a consensus estimate of $10.56 billion for the company’s revenue for the quarter, with a low and high estimate of $9.17 billion and $11.1 billion respectively. The average forecast suggests up to a 13.30% growth in sales growth compared to quarterly growth in the same period last fiscal year. Wall Street analysts have also projected the company’s year-on-year revenue for 2022 to grow to $41.93 billion, representing a 8.50% jump on that reported in the last financial year.

Revisions could be used as tool to get short term price movement insight, and for the company that in the past seven days was no upward and no downward review(s). Turning to the stock’s technical picture we see that short term indicators suggest on average that KO is a 100% Buy. On the other hand, the stock is on average a 100% Buy as suggested by medium term indicators while long term indicators are putting the stock in 100% Buy category.

27 analyst(s) have given their forecast ratings for the stock on a scale of 1.00-5.00 for a strong buy to strong sell recommendation. A total of 7 analyst(s) rate the stock as a Hold, 14 recommend KO as a Buy and 5 give it an Overweight rating. Meanwhile, 1 analyst(s) rate the stock as Underweight and 0 say it is a Sell. As such, the average rating for the stock is Overweight which could provide an opportunity for investors keen on increasing their holdings of the company’s stock.

The technical evaluation for the stock shows the PEG ratio is 4.11, with KO’s current price about 1.27% and 2.15% off the 20-day and 50-day simple moving averages respectively. The Relative Strength Index (RSI, 14) currently prints 54.30, while 7-day volatility ratio is 2.19% and 2.53% in the 30-day chart. Further, The Coca-Cola Company (KO) has a beta value of 0.60, and an average true range (ATR) of 1.60. Analysts have given the company’s stock an average 52-week price target of $70.43, forecast between a low of $64.00 and high of $76.00. Looking at the price targets, the low is 1.23% off recent price level in today’s trading while to achieve the yearly target high, it has to move -17.28%. Nonetheless, investors will most likely welcome a -8.02% jump to $70.00 which is the analysts’ median price.

In the market, a comparison of The Coca-Cola Company (KO) and its peers suggest the former has performed considerably stronger. Data shows KO’s intraday price has changed 1.13% today and 16.43% over the past year. Comparatively, PepsiCo Inc. (PEP) has moved 0.50% so far today and only 13.94% in the past 12 months. Looking at another peer, we see that Starbucks Corporation (SBUX) price has gained 2.18% on the day. However, the stock is -35.77% off its price today a year ago. Moreover, Mondelez International Inc. (MDLZ) is also up 0.79% in today’s trading while keeping a a downtrend of -1.98% over the past year. If we look at the PE ratio, we find that The Coca-Cola Company’s ratio stands at 27.02 compared to PepsiCo Inc.’s 22.68 and Starbucks Corporation’s 19.40. Elsewhere, the overall performance for the S&P 500 and Dow Jones Industrial shows that the indexes are up 1.65% and 1.49% respectively on the day as seen in early trades.

If we refocus on The Coca-Cola Company (NYSE:KO), historical trading data shows that trading volumes averaged 21.62 million over the past 10 days and 18.63 million over the past 3 months. The company’s latest data on shares outstanding shows there are 4.33 billion shares.

The 0.10% of The Coca-Cola Company’s shares are in the hands of company insiders while institutional holders own 70.80% of the company’s shares. Also important is the data on short interest which shows that short shares stood at 32.37 million on Apr 28, 2022, giving us a short ratio of 2.04. The data shows that as of Apr 28, 2022 short interest in The Coca-Cola Company (KO) stood at 0.75% of shares outstanding, with shares short rising to 23.88 million registered in Mar 30, 2022. Current price change has pushed the stock 8.21% YTD, which shows the potential for further growth is there. It is this reason that could see investor optimism for the KO stock continues to rise going into the next quarter.

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