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THE COCA-COLA COMPANY

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KO trade ideas

COCA COLAAlmost half of Coca-Cola's pre-pandemic revenue came from selling products at sporting events, movie theaters, restaurants, concerts and other social events, and the pandemic and restrictions have dealt a huge blow to Coca Cola. There was a slight improvement in the third quarter as restrictions were eased in many places and the situation began to recover. However, in the 4th quarter, bans were again introduced. Taking into account the decrease in the incidence, mass vaccinations, in the second quarter of 2021 all public places will be open, and the deferred demand for the company's products throughout the year. I believe Coca-Cola is a solid company with an above average dividend yield covered. The fair value, which after the removal of all restrictions, will be $ 60 by the end of the year. Investment idea buy 48 and 45 sell 60. Medium term buying 48 dollars selling 51 and 54
NYSE:KOLong
by monsRUS
Coca Cola - Making Money, SlowlyThe Coca-Cola Company is a nonalcoholic beverage company in the world and one of the world's most recognizable brands. It is home to more than 500 beverage brands, some 20 of those billion-dollar-brands, including four of the top five soft drinks: Coca-Cola, Diet Coke, Fanta, and Sprite. In addition to soft drinks, it markets waters, enhanced water and sports drinks; juice drinks, dairy and plant-based beverages, ready-to-drink teas and coffees and energy drinks. Other top brands include Minute Maid, Powerade, Dasani, Honest Tea, and vitaminwater. With the world's largest beverage distribution system, Coca-Cola reaches thirsty consumers in more than 200 countries. Nearly 70% of its sales comes from outside the US. Latest Earnings Performance Coca-Cola managed to beat analysts' expectations in Q3 2020. Revenue for Q3 2020 declined 9% to $8.7 billion but was higher than expectations of $8.4 billion. Adjusted profit for the quarter came in at $0.55 per share, this was better than the $0.46 profit that Wall Street had predicted. All four of Coke’s drink categories reported declines in unit case volume. Sparkling soft drinks was the least affected, with its volume falling only 1%. Demand for Coke Zero Sugar and trademark Coke drinks lifted the category, although overall it was hurt by the decline in the North American fountain business. Juice, dairy, and plant-based drinks saw volumes shrink by 6%, hurt by pressure in Asia Pacific and Latin America. Unit case volume of water, enhanced water, and sports drinks fell by 11%. Tea and coffee was the hardest hit, with demand dropping 15%, primarily due to the company’s Costa cafes. FY 2019 Earnings Performance Coca-Cola revenues came in at $37.3 billion in 2019, marking a growth of 9% compared to 2018. Higher revenue was driven by price/mix growth of 5% and concentrate sales growth of 1%. Sparkling soft drinks grew 2%, driven by strong global growth in trademark Coca-Cola, including growth in original Coca-Cola and continued growth in Coca-Cola Zero Sugar. Water, enhanced water, and sports drinks grew 3%, led by Ciel and Cristal in Latin America and strong global growth in the sports drinks portfolio, partially offset by the impact of deprioritization of low-margin water brands in key markets, such as China and Japan. Tea and coffee volume grew 1% led by strong performance across the company's portfolio in Japan, in addition to the doğadan tea business in Turkey and Gold Peak tea in North America. Juice, dairy, and plant-based beverages remained flat as strong performance by Chi in West Africa and innocent juices in Europe was offset by a decline in Rani in the Middle East. Adjusted earnings came in at $2.11 per share in 2019, marginally higher than $2.08/share in the year-ago period. Coca-Cola looking to improve profitability under a new CEO The new Chief Executive Officer, James Quincey, has laid out plans to improve the Coca-Cola's profitability that goes beyond its refranchising to laying-off workers. The company plans to redesign its organization to make it faster and more agile, and as it creates a more focused, leaner corporate center and broadened enabling services, it could result in the laying off of around 1,200 workers beginning in the second half of this year and carrying into the next year. Coca-Cola restructuring its way to more profitability Coca-Cola is refranchising many of its bottling operations in a bid to move away from the capital intensive and low margin business of bottling, and focus more on the concentrate business as the consumption of carbonated drinks continues to slow down, especially in developed markets. Coca-Cola's net sales growth has been hurt in the last few quarters due to structural changes. In 2017, the company accomplished major milestones in three of its most important markets. The bottling businesses in China was sold; KO's two largest bottlers in Japan merged creating a single bottler, covering roughly 85% of the system; and most importantly, Coca-Cola completed the refranchising of its U.S. bottling operations. A bottling business comes with four to five times more revenue per drink sold and the accompanying cost. Thus, any impact on the sales of the bottler is going to have a magnified impact on overall sales for Coca-Cola and much less effect on the company's profits. Coca-Cola is, therefore, focusing more on capitalizing on profitability in the concentrate business and looking to refranchise some of its bottling investments.
NYSE:KOLong
by pivotanalytics
Potential KO Entrance PointAs a 128-year-old multinational beverage giant, The Coca-Cola Company is a staple in any portfolio. In the post-covid era of high growth tech stocks, boring bread and butter companies such as Coca Cola have been relatively underbought. It has severely underperformed the SPY, analysts estimate 2020 revenue to decline by 11%, and covid shutdowns have affected its operations globally. Why would anyone want to buy KO's underperforming stock when shares like TSLA have rocketed more than 1000% in the last year? When thinking of value, it is important to keep the long term in mind. It may be tempting to dump your entire portfolio in companies like TSLA or NVDA - it is completely possible that one would make a lot of money by doing that. However, the difference between these companies and Coca Cola is that while it's possible that the next generations might be driving Teslas, they will definitely be consuming Coca-Cola products. Just look at Wikipedia's massive alphabetically organized list of Coca Cola brands ( en.wikipedia.org ). They have proven to be flexible in changing markets, adapting to the decline in demand for sugary drinks by increasing the role of products such as Dasani, SmartWater, and Coke Zero. KO maintains a majority market control in every region except the Middle East, and its brand is recognizable across the globe. Coca Cola is a great long-term investment that is likely to produce returns for the foreseeable future. KO is currently trading at a PE ratio of 25.67, well below the SPY's PE of 38.54. Earnings are expected to shrink this period, however, 2021 is expected to bring with it a revenue growth of 10.7%. Although KO is leveraging lots of debt ($51 billion with a debt to equity ratio of 2.84), it has approximately $11 billion of cash on hand and a 9-month positive operating cash flow of $6.2 billion (January 2020 - September 2020). This should be enough to allow KO to meet its current debt obligations. It is currently outperforming estimated earnings for the 2020 period. It has purchased $7 billion in long term investments, a bullish sign for shareholders. It has also increased its dividend (currently a 3.38% yield) for 58 years straight, making it a dividend king. The $48.50 (1) range seems to be its current demand zone, providing recent support. I expect KO to rally into the $51.50 range (2) before either encountering resistance and reversing back to support at 1, or continuing higher towards resistance at its 6 month high (3). There is a possibility that it breaks through support at 1, however, I find that to be unlikely due to how many times it has been tested (but you should always set a stop loss!). I also believe that it's worth mentioning that the 200 EMA on the 5-year window seems to be acting as additional support:
NYSE:KOLong
by banyanneececa
1
KO - Potential Head and Shoulders This stock tends to trail the index by a couple days. Look for rotation into this stock over the next few days to form our right shoulder with a potential pullback and break of the neckline. After examining market indexes over the past week, we're shaping up to see a bit more red, even after that doozy of a red candle printed on the SPX today. As a long-term investor of KO I'm hoping that this turns out to be a megaphone pattern, but since I stood on the milk crate last week and advocated LONG positions @ 48.50, I'd be doing a disservice if I didn't point out what I'm seeing now. Cheers!
NYSE:KO
by SLOPolarBear