The Coca-Cola Company Losing Some Fizz


The Coca-Cola (KO) Company is currently trading at $46.72 per share. By midday on Tuesday, 4 April the stock was 0.32% lower, for a loss of $0.18. The stock has a 52-week trading range of $36.56 on the low end and $46.93 on the high-end. The price/earnings ratio is 27.96 and the earnings per share is 1.67. Coca-Cola Company stock also has a 1-year target estimate price of $47. According to the consensus forecast among analysts, the Coca-Cola Company has a mean recommendation of 2.4 for the week. On a rating scale of 1.0 to 5.0, where 1.0 recommends a strong buy and 5.0 recommends a sell, the stock is leaning towards a buy. The high target price is $54 per share and the low target price is $40 per share, meaning that the current price of the stock offers a fair valuation of Coca-Cola.

coca cola correction

Analysts looking to make decisions about the stock’s future performance tend to look at the upgrades/downgrades history of Coca-Cola to get a better feel of where it is headed. The following research firms and actions have been published for Coca-Cola company stock:

  • On 12 January 2016, Stifel upgraded Coca-Cola from a hold to a buy
  • On 10 February 2016, Societe Generale upgraded Coca-Cola from a sell to a hold
  • These are positive affirmations of the stock’s possible trajectory moving forward. It is notable to point out however that the recommendation trends among analysts for Coca-Cola have become somewhat less bullish between March and April, with more traders opting towards a hold or an under-perform rating than a strong buy or a buy rating. It is also notable to point out that no traders are recommending to sell Coca-Cola Company stock.

    Technical Indicators for Coca-Cola Company Stock

    coca cola

    According to the moving averages, the 20-day MA for Coca-Cola is $45.59, which is slightly beneath the price of the stock at $46.72. The current price of Coca-Cola stock is nestled in the lower Bollinger bands, and the MACD (moving average convergence divergence) is currently beneath 0; this indicates that Coca-Cola is moving in a bearish direction. Other indicators to pay attention to include the Relative Strength Index (RSI). This is an important gauge as to whether stocks have been overbought or oversold based on their recent performance. The current RSI is 74.84. The price/earnings ratio at Coca-Cola is approximately 7 points lower than the 5-year average for the company. However, it should be pointed out that Coca-Cola has been generating substantially less returns over time as a public consciousness develops about the health hazards of sugar-saturated carbonated drinks in North America and across Europe. It should be pointed out that the share price is 40% higher than it was in 2011, although the company is generating far less revenue and lower levels of net income.

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