Atlanta-based global beverage giant, Coca-Cola, is expanding its coffee business that was previously focused mainly in Japan. Now the company is ready to release Coca-Cola Coffee in more than 25 markets around the world by the end of 2019.
The drink, with slightly less caffeine content than in a normal cup of coffee but more caffeine than in a can of soda, claims it can boost the mid-afternoon energy slump among busy office workers.
The move comes as customer beverage preferences have shifted from more sugary options to less sugary options like bottled water or Coca-Cola Zero Sugar. Coca-Cola Coffee is said to contain less sugar than a Coke of the same size.
Coffee market has been steadily increasing over the years and ready-to-drink coffee is one of the fastest growing segments in the coffee industry. According to some research, this segment has grown 31% in 2016 and 2017. Chilled coffee is another ever expanding segment growing at least 10% annually in the U.S. from 2013 to 2107.
For several years, Coca-Cola has been trying to succeed in the coffee business. In 2006, it introduced coffee to its namesake brand but the project stopped after two years. In 2017, the company had another go at it and introduced Coca-Cola Plus Coffee in Australia. After several retooling formula tests, the company brought it to Asia.
Coca-Cola also has plans to sell ready-to-drink Costa coffee products in the European markets. The company acquired Costa for $5.1 billion earlier this year.
As of the current quarter, Coca-Cola’s revenue rose 5% to $8.02 billion, beating expectations of $7.88 billion.
The Stochastic Oscillator for KO moved into oversold territory on March 04, 2024. Be on the watch for the price uptrend or consolidation in the future. At that time, consider buying the stock or exploring call options.
The Momentum Indicator moved above the 0 level on February 20, 2024. You may want to consider a long position or call options on KO as a result. In of 87 past instances where the momentum indicator moved above 0, the stock continued to climb. The odds of a continued upward trend are .
KO moved above its 50-day moving average on March 04, 2024 date and that indicates a change from a downward trend to an upward trend.
Following a 3-day Advance, the price is estimated to grow further. Considering data from situations where KO advanced for three days, in of 341 cases, the price rose further within the following month. The odds of a continued upward trend are .
The Aroon Indicator entered an Uptrend today. In of 322 cases where KO Aroon's Indicator entered an Uptrend, the price rose further within the following month. The odds of a continued Uptrend are .
The Moving Average Convergence Divergence Histogram (MACD) for KO turned negative on February 29, 2024. This could be a sign that the stock is set to turn lower in the coming weeks. Traders may want to sell the stock or buy put options. Tickeron's A.I.dvisor looked at 47 similar instances when the indicator turned negative. In of the 47 cases the stock turned lower in the days that followed. This puts the odds of success at .
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 .
KO broke above its upper Bollinger Band on February 21, 2024. This could be a sign that the stock is set to drop as the stock moves back below the upper band and toward the middle band. You may want to consider selling the stock or exploring put 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 (9.940) is normal, around the industry mean (70.319). P/E Ratio (24.215) is within average values for comparable stocks, (32.728). Projected Growth (PEG Ratio) (2.808) is also within normal values, averaging (5.025). Dividend Yield (0.031) settles around the average of (0.029) among similar stocks. P/S Ratio (5.672) is also within normal values, averaging (3.200).
The Tickeron Profit vs. Risk Rating rating for this company is (best 1 - 100 worst), indicating low risk on high returns. The average Profit vs. Risk Rating rating for the industry is 74, placing this stock better than average.
The Tickeron Price Growth Rating for this company is (best 1 - 100 worst), indicating fairly steady price growth. KO’s price grows at a lower rate over the last 12 months as compared to S&P 500 index constituents.
The Tickeron Seasonality Score of (best 1 - 100 worst) indicates that the company is fair valued in the industry. The Tickeron Seasonality score describes the variance of predictable price changes around the same period every calendar year. These changes can be tied to a specific month, quarter, holiday or vacation period, as well as a meteorological or growing season.
The Tickeron PE Growth Rating for this company is (best 1 - 100 worst), pointing to slightly better than average 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 average fundamental analysis ratings, where 1 is best and 100 is worst, are as follows
a manufacturer of non-alcoholic beverages
A.I.dvisor indicates that over the last year, KO has been closely correlated with PEP. These tickers have moved in lockstep 75% of the time. This A.I.-generated data suggests there is a high statistical probability that if KO jumps, then PEP could also see price increases.