Lower consumer spending and consumption would lead to lower demand for food and beverages, in turn affecting Coca-Cola’s revenues. However, the majority of the company’s revenue is contributed by geographies that are not severely affected by the virus, leading to a decline in stock price that is lower than the decline in the broader market.
Full Answer
Is Coca-Cola’s stock overvalued?
Coca-Cola Co. (KO) shares are overvalued based on current multiples and the recent decline in revenue trends due to socio-demographic shifts in the soft drink market. The company could be worth roughly $40 a share, which is about 13.5 percent cheaper than its current price of around $45.
How does Coca-Cola’s valuation compare to PepsiCo?
As per Coca-Cola Valuation by Trefis, we have a price estimate of $50 per share for the company’s stock, higher than its current market price of $43. In contrast, here’s how Coca-Cola stands on comparison to close rival PepsiCo.
Is Coca-Cola stock headed to $57 a share?
That's not too surprising, however, given how half-hearted the recommendation from Coke's fan was. Jefferies this morning raised its price target on Coca-Cola stock, but only to $57 a share (so only 4% above where the stock closed on Thursday).
Did Jefferies raise its target price for Coca-Cola stock?
Jefferies this morning raised its price target on Coca-Cola stock, but only to $57 a share (so only 4% above where the stock closed on Thursday). And according to StreetInsider.com, Jefferies didn't even raise its rating on the stock, which stays at hold.
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What factors affect the price of Coca-Cola?
5 Factors That Will Determine Coca-Cola Stock PriceStrong Brand. Strong brand is usually the first thing that comes to the minds of analysts and the general public as soon as the topic of conversation is changed to the Coca-Cola Company. ... Price Action. ... Emerging Markets. ... Market Volatility. ... Unhealthy Products.
Why is the price of Coke going up?
Costs from aluminum cans to labor and shipping have surged in the last year due to pandemic-induced global supply-chain disruptions, forcing companies across the packaged food industry to respond with price hikes.
Is Coke a good stock to buy 2022?
Coca-Cola stock has now gained 11% so far in 2022 —making it one of the better performers in the Dow, which has fallen 7% this year.
What is Coca-Cola price strategy?
MARKET PENETRATION PRICING POLICY Coca Cola's objective is to target every consumer of the country so Coca Cola has to set its prices at such a level which no one can offer to its consumers. That is why Coca Cola charges the same prices as are being charged by its competitors.
Who is more profitable Coke or Pepsi?
The brand retains the title of world's most valuable and strongest soft drink brand, with a brand value of $33.2bn – almost double that of second place Pepsi at $18.4bn.
Which company is more profitable Coca-Cola or Pepsi?
Between 2016 and 2018, PepsiCo's revenue has grown from $62.8 billion to $64.7 billion, a growth of 3%. In comparison, Coca-Cola's revenue has decreased from $41.9 billion to $31.9 billion, a decline of 24%.
Is it worth to invest in Coca-Cola?
Coca-Cola: Debt, Dividend And Valuation Coca-Cola has a current yield of 2.93%. The payout ratio is a bit above 72%, and the 5-year dividend growth rate is 3.66%. KO currently trades for $60.40 per share. The average one year price target of 14 analysts rating the company is $65.53.
Is Coca-Cola stock undervalued?
Coca-Cola Co. (KO) shares are overvalued based on current multiples and the recent decline in revenue trends due to socio-demographic shifts in the soft drink market.
Is Coca-Cola a buy now?
For the current quarter, Coke is expected to post earnings of $0.68 per share, indicating no change from the year-ago quarter. The Zacks Consensus Estimate has changed -1.5% over the last 30 days. The consensus earnings estimate of $2.47 for the current fiscal year indicates a year-over-year change of +6.5%.
What are the 4 P's of Coca-Cola?
It analyses the 4Ps (Product, Price, Place, and Promotion) of Coca-Cola Company and explains its business & marketing strategies. The Coca-Cola Company is an American multinational corporation. It is best known around the world for its flagship product, Coca-Cola. The Coca-Cola Company has a wide product range.
What is the secret behind Coca-Cola's marketing strategy?
The commercial itself closely follows Coca-Cola's primary principles in their advertising rather than attempting to sell it as a drink. Coke focuses on selling an abstract positive concept, such as happiness, family, and sharing.
What is Coca-Cola's strategy?
Our vision is to craft the brands and choice of drinks that people love, to refresh them in body and spirit. And done in ways that create a more sustainable business and better shared future that makes a difference in people's lives, communities and our planet.
When will Coke announce its second quarter results?
Investors will get details about the true impact of the pandemic on operating trends when Coke announces its second-quarter results on July 21. But before then, shareholders will be watching Pepsi's report on July 13 for signs of a rebound in the beverage industry.
Is Coca Cola a liability?
Coca-Cola's more beverage-focused portfolio has been a slight liability during the early days of the COVID-19 pandemic. With all types of large gatherings, including sporting events and concerts, canceled, and with restaurants seeing plunging traffic, consumers have far fewer occasions to drink soda.
What happened
It's a good news, bad news kind of a day today for investors in Coca-Cola ( KO -1.11% ). The good news is that one Wall Street analyst raised its price target on Coke stock this morning to a few dollars more than it cost at the end of 2020. The bad news is that a different analyst just downgraded Coca-Cola stock.
So what
That's not too surprising, however, given how half-hearted the recommendation from Coke's fan was. Jefferies this morning raised its price target on Coca-Cola stock, but only to $57 a share (so only 4% above where the stock closed on Thursday).
NYSE: KO
In contrast, Coca-Cola critic RBC Capital set only a $55 price target on Coke shares, essentially predicting that the stock will not move at all this year. Warning that "valuation is near-full" already, RBC also downgraded the stock to "sector perform" (which is basically another hold rating).
Now what
In essence, what RBC is saying is that Cola-Cola is a fine company and "continues to make the right long-term decisions" for its future.
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The soda giant abruptly lost several important revenue lines as COVID-19 containment measures took root around the world
Demitri covers consumer goods and media companies for Fool.com, as well as broader moves in the economy. Follow @tmfsigma
What happened
Coca-Cola ( NYSE:KO) shareholders underperformed a weak market last month as their stock lost 17% compared to a 12.5% drop in the S&P 500, according to data provided by S&P Global Market Intelligence.
So what
Blue chip consumer staples investments like Coca-Cola are often safe havens during market slumps. Yet Coke stock was hurt by worries about a significant negative impact from the COVID-19 outbreak on the business.
Now what
Coke tapped debt markets on March 20, adding more than $5 billion to its cash savings. Executives are slashing costs while attacking sales opportunities online and in retailing stores, too. "We are confident about our ability to navigate from a liquidity perspective," they said in a note to investors.
What happened
Shares of Coca-Cola Company ( KO -1.11% ) stock closed trading Wednesday down a bit more than 4.9%.
So what
So what did Morgan Stanley have to say? As related by TheFly.com, which covered the downgrade, it wasn't anything earth shattering. All Morgan Stanley did was cut its rating on Coca-Cola stock from "overweight" to "equal weight" (i.e. from buy to hold).
Now what
And yet, here's what I don't get: According to Morgan Stanley, Coke stock is still worth $52 a share. That's a bit less than the $65 the analyst previously estimated, but it still values this stock at 16% more than what it costs today.
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Why did Coca Cola stock drop?
While Coca-Cola’s stock has declined due to the Coronavirus/Oil Price War crisis, going by trends seen during the 2008 slowdown, it’s likely that it could bounce back strongly but potentially underperform the broader market as the crisis winds down.
How much has Coca Cola stock declined in 2020?
Coca-Cola’s stock declined by about 11.5% between 8th March 2020 and 13th March 2020, and the stock is down by about 16% since February 1, after the WHO declared a global health emergency.
When did Ko stock drop?
KO stock declined from levels of around $20 in October 2007 (the pre-crisis peak) to levels of around $14 in March 2009 (as the markets bottomed out) and recovered to levels of about $21 in early 2010.
How does the S&P 500 work?
Investing Basics: How the S&P 500 Works 1 Coca-Cola’s stock declined by about 11.5% between 8th March 2020 and 13th March 2020, and the stock is down by about 16% since February 1, after the WHO declared a global health emergency. 2 The S&P 500 declined by 9% between 8th March 2020 and 13th March 2020, and has fallen by 19% since February 1, after the global health emergency was declared by the WHO. 3 We also compare the current coronavirus crash to 4 other market crashes here.
What does it mean to enjoy Coke?
For many people, enjoying a Coke means picking it up at a store and bringing it home.
How much did the stock price fall in 2008?
The following year, revenue fell to $31 billion, but its earnings rose to $2.93. The stock price at the start of 2008 was about $30 , and it fell to below $20 during the first half of 2009 before recovering to $28.50 at the end of the year.
Is Coca Cola a dividend aristocrat?
Coca-Cola is a Dividend Aristocrat, a group of S&P 500 companies that have raised their dividends annually for at least 25 consecutive years. Coca-Cola has done so for 58 straight years. That's something you can do when you have a history of riding out storms.
The share price of The Coca-Cola Company (KO) now
This figure corresponds to the average price over the previous 50/200 days. For The Coca-Cola stocks, the 50-day moving average is the support level today.
Historical and forecast chart of The Coca-Cola stock
The chart below shows the historical price of The Coca-Cola stock and a prediction chart for the next month. For convenience, prices are divided by color. Forecast prices include: Optimistic Forecast, Pessimistic Forecast, and Weighted Average Best Forecast. Detailed values for the The Coca-Cola stock price can be found in the table below.
The Coca-Cola Daily Price Targets
Forecast target price for 02-28-2022: $ 65.53. Positive dynamics for The Coca-Cola shares will prevail with possible volatility of 1.334%.
The Coca-Cola forecast for this year
An downtrend is forecast for this month with an optimal target price of $ 62.132. Pessimistic: $60.69. Optimistic: $64.12
The Coca-Cola information and performance
The Coca-Cola Company is an American food company, the world’s largest manufacturer and supplier of concentrates, syrups and soft drinks. The most famous product of the company is the Coca-Cola drink. The company owns 5 of the world’s 6 best-selling soft drink brands – Coca-Cola, Diet Coke, Fanta, Schweppes and Sprite.
The Coca-Cola (KO) stock dividend
The Coca-Cola last paid dividends on 03/14/2022. The next scheduled payment will be on 04/01/2022. The amount of dividends is $1.68 per share. If the date of the next dividend payment has not been updated, it means that the issuer has not yet announced the exact payment.
What are the factors that affect the price of stocks?
Like any other market, supply and demand is the primary factor driving the price of stocks. Other factors, such as major financial news, natural disasters, investor reaction to company financials, or pricing speculation can cause large price fluctuations.
How does supply affect stock prices?
Because the stock market functions as an auction, when there are more buyers than there are sellers, the price has to adapt or no trades are made. This tends to drive the price upwards, increasing the market quotation at which investors can sell their shares and enticing investors to sell who had previously not been interested in selling.
What is the stock market?
The stock market is essentially an auction in which buyers and sellers negotiate prices for shares of ownership in publicly traded companies. Traders on the stock market can be individuals, governments, corporations, institutions, or asset management companies.
What happens when two parties agree on a price?
When the two parties agree upon a price, the trade is matched, and that becomes the new market quotation for the stock. The buyers and sellers can be individuals, corporations, institutions, governments, or asset management companies that are managing money for private clients, mutual funds , index funds, or pension plans.
What does volume mean in trading?
In many cases, you won't have any idea who is on the other side of the trade. The number of shares traded is called the " trading volume ," and it can indicate how "hot" a particular stock is or how much interest there is in it from other investors. It can also give traders an idea of how easy it will be to get into or out ...
Why is my trading going up?
Increased trading could be caused by an earnings report that shows good or bad financial news. It may be a major financial news event, such as an interest rate hike, or it could even be a natural disaster, such as a hurricane, that is likely to have far-reaching consequences.
Is the stock market an auction?
The Stock Market Is an Auction. First, realize that the stock market is, in essence, an auction, with one party wanting to sell its ownership in a particular company, and another party wanting to buy ownership. When the two parties agree upon a price, the trade is matched, and that becomes the new market quotation for the stock.