Coca-Cola’s (KO, $47.59) latest foray into coffee looks promising
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.
KO's RSI Oscillator leaves overbought zone
The 10-day RSI Oscillator for KO moved out of overbought territory on August 26, 2026. This could be a sign that the stock is shifting from an upward trend to a downward trend. Traders may want to look at selling the stock or buying put options. Tickeron's A.I.dvisor looked at 40 instances where the indicator moved out of the overbought zone. In 21 of the 40 cases the stock moved lower in the days that followed. This puts the odds of a move down at 52%.
Technical Analysis (Indicators)
Bearish Trend Analysis
The Momentum Indicator moved below the 0 level on September 01, 2026. You may want to consider selling the stock, shorting the stock, or exploring put options on KO as a result. In 32 of 76 cases where the Momentum Indicator fell below 0, the stock fell further within the subsequent month. The odds of a continued downward trend are 42%.
The Moving Average Convergence Divergence Histogram (MACD) for KO turned negative on August 28, 2026. 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 49 similar instances when the indicator turned negative. In 16 of the 49 cases the stock turned lower in the days that followed. This puts the odds of success at 33%.
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 50 of 62 cases within the following month. The odds of a continued downward trend are 29%.
KO broke above its upper Bollinger Band on August 18, 2026. 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.
Bullish Trend Analysis
The Stochastic Oscillator shows that the ticker has stayed in the oversold zone for 6 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 +0.92% 3-day Advance, the price is estimated to grow further. Considering data from situations where KO advanced for three days, in 144 of 332 cases, the price rose further within the following month. The odds of a continued upward trend are 43%.
The Aroon Indicator entered an Uptrend today. In 115 of 305 cases where KO Aroon's Indicator entered an Uptrend, the price rose further within the following month. The odds of a continued Uptrend are 38%.
Fundamental Analysis (Ratings)
The Tickeron Profit vs. Risk Rating rating for this company is 6 (best 1 - 100 worst), indicating low risk on high returns. The average Profit vs. Risk Rating rating for the industry is 76, placing this stock better than average.
The Tickeron SMR rating for this company is 24 (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 PE Growth Rating for this company is 31 (best 1 - 100 worst), pointing to outstanding 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 37 (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 Tickeron Valuation Rating of 70 (best 1 - 100 worst) indicates that the company is slightly overvalued 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: KO's P/B Ratio (10.449) is slightly higher than the industry average of (5.699). P/E Ratio (26.375) is within average values for comparable stocks, (42.649). Projected Growth (PEG Ratio) (3.990) is also within normal values, averaging (4.157). Dividend Yield (0.024) settles around the average of (0.026) among similar stocks. KO's P/S Ratio (7.559) is slightly higher than the industry average of (2.736).
Notable companies
Industry description
Market Cap
High and low price notable news
Volume
Fundamental Analysis Ratings
The average fundamental analysis ratings, where 1 is best and 100 is worst, are as follows
Advertisement
General Information
a manufacturer of non-alcoholic beverages
Industry BeveragesNonAlcoholic
Advertisement