Following a rating upgrade by Morgan Stanley, Coca-Cola stock price jumped more than +2% in pre-market trading Tuesday.
Morgan Stanley analysts raised rating on the soft drink giant’s shares to overweight from equal weight. Analyst Dara Mohsenian also hiked her 12-month price target on the stock to $55 from $52, which reflects a 14.5% upside.
Mohsenian emphasized that growth outlook on Coca-Cola is higher than its consumer packaged goods peers, while also praising the company’s pricing power, “strategy tweaks”, strong volume growth, and rebounding emerging market trends as tailwinds for the stock. According to the analyst, these factors are not yet fully captured in Coca-Cola’s current relative valuation in the market – thereby hinting at a potentially attractive valuation.
Mohsenian revised her earnings-per-share estimates for Coke to 42 cents from 41 for 2019, and to 46 cents from 44 for 2020.
Coca-Cola is now Morgan Stanley’s “top mega-cap staples pick”, as mentioned by Mohsenian in her note to clients.
KO saw its Momentum Indicator move below the 0 level on October 23, 2024. This is an indication that the stock could be shifting in to a new downward move. Traders may want to consider selling the stock or exploring put options. Tickeron's A.I.dvisor looked at 80 similar instances where the indicator turned negative. In of the 80 cases, the stock moved further down in the following days. The odds of a decline are at .
KO moved below its 50-day moving average on October 21, 2024 date and that indicates a change from an upward trend to a downward trend.
The 10-day moving average for KO crossed bearishly below the 50-day moving average on October 14, 2024. This indicates that the trend has shifted lower and could be considered a sell signal. In of 16 past instances when the 10-day crossed below the 50-day, the stock continued to move higher over the following month. The odds of a continued downward trend are .
Following a 3-day decline, the stock is projected to fall further. Considering past instances where KO declined for three days, the price rose further in of 62 cases within the following month. The odds of a continued downward trend are .
The Aroon Indicator for KO entered a downward trend on November 13, 2024. This could indicate a strong downward move is ahead for the stock. Traders may want to consider selling the stock or buying put options.
The RSI Indicator shows that the ticker has stayed in the oversold zone for 15 days. The price of this ticker is presumed to bounce back soon, since the longer the ticker stays in the oversold zone, the more promptly an Uptrend is expected.
The Stochastic Oscillator shows that the ticker has stayed in the oversold zone for 15 days. The price of this ticker is presumed to bounce back soon, since the longer the ticker stays in the oversold zone, the more promptly an upward trend is expected.
Following a 3-day Advance, the price is estimated to grow further. Considering data from situations where KO advanced for three days, in of 354 cases, the price rose further within the following month. The odds of a continued upward trend are .
KO may jump back above the lower band and head toward the middle band. Traders may consider buying the stock or exploring call options.
The Tickeron SMR rating for this company is (best 1 - 100 worst), indicating very strong sales and a profitable business model. SMR (Sales, Margin, Return on Equity) rating is based on comparative analysis of weighted Sales, Income Margin and Return on Equity values compared against S&P 500 index constituents. The weighted SMR value is a proprietary formula developed by Tickeron and represents an overall profitability measure for a stock.
The Tickeron Valuation Rating of (best 1 - 100 worst) indicates that the company is slightly undervalued in the industry. This rating compares market capitalization estimated by our proprietary formula with the current market capitalization. This rating is based on the following metrics, as compared to industry averages: P/B Ratio (10.081) is normal, around the industry mean (75.858). P/E Ratio (24.567) is within average values for comparable stocks, (31.998). Projected Growth (PEG Ratio) (3.054) is also within normal values, averaging (5.544). Dividend Yield (0.031) settles around the average of (0.027) among similar stocks. P/S Ratio (5.754) is also within normal values, averaging (3.197).
The Tickeron Profit vs. Risk Rating rating for this company is (best 1 - 100 worst), indicating well-balanced risk and returns. The average Profit vs. Risk Rating rating for the industry is 73, placing this stock slightly better than average.
The Tickeron PE Growth Rating for this company is (best 1 - 100 worst), pointing to consistent earnings growth. The PE Growth rating is based on a comparative analysis of stock PE ratio increase over the last 12 months compared against S&P 500 index constituents.
The Tickeron Price Growth Rating for this company is (best 1 - 100 worst), indicating steady price growth. KO’s price grows at a higher rate over the last 12 months as compared to S&P 500 index constituents.
The average fundamental analysis ratings, where 1 is best and 100 is worst, are as follows
a manufacturer of non-alcoholic beverages
Industry BeveragesNonAlcoholic