Coca-Cola: A Stock That Rallied More Than 4% In A Week

by Trefis Team
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Trefis
KO
Coca Cola
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Coca-Cola stock (NYSE: KO) jumped more than 4% in just the last one week. In the last ten days, also, the rise has been more than 4% while in the last one month the stock is up almost 2%. The primary reason for the rally in the last one week has been the strength the stock is displaying as the company nears its Q2 2021 results announcement. KO is expected to report EPS of $0.55, which would mark a 31% y-o-y rise, while revenues are expected to grow 29% to $9.25 billion in the quarter. Coca-Cola is also innovating with its offerings, especially Coca-Cola Zero Sugar by trying to give it a refreshing taste and new packaging. Rising health consciousness along with the demand for fresh flavors has been driving the sale of beverages in recent times. Keeping this trend in mind, Coca-Cola has optimized the flavors of the existing Coca-Cola Zero Sugar, while retaining its core ingredients and nutritional content.

In comparison to KO’s 4% rise, the broader S&P 500 increased only 1% over the last one week. When we look at the change over the last one month, KO stock is up almost 2% as against a rise of 2.4% in the S&P 500. Now, is KO stock set to rise further or could we expect some correction? We believe that there is a 52% chance of a rise in KO stock over the next month (21 trading days) based on our machine learning analysis of trends in the stock price over the last ten years. See our analysis on KO Stock Chance of Rise  for more details.

Twenty-One Day: KO 1.9%, vs. S&P500 2.4%; Underperformed market

(36% likelihood event; 52% probability of rise over next twenty-one days)

  • Coca-Cola stock increased 1.9% the last twenty-one trading days (one month), compared to broader market (S&P500) rise of 2.4%
  • A change of 1.9% or more over twenty-one trading days is a 36% likelihood event, which has occurred 907 times out of 2516 in the last 10 years
  • Of these 907 instances, the stock has seen a positive movement over the next twenty-one trading days on 469 occasions
  • This points to a 52% probability for the stock rising over the next twenty-one trading days

Ten Day: KO 4.3%, vs. S&P500 1.6%; Outperformed market

(9% likelihood event; 38% probability of rise over next ten days)

  • Coca-Cola stock increased 4.3% over the last ten trading days (two weeks), compared to broader market (S&P500) rise of 1.6%
  • A change of 4.3% or more over ten trading days is a 9% likelihood event, which has occurred 215 times out of 2516 in the last 10 years
  • Of these 215 instances, the stock has seen a positive movement over the next ten trading days on 82 occasions
  • This points to a 38% probability for the stock rising over the next ten trading days

Five Day: KO 4.3%, vs. S&P500 0.9%; Outperformed market

(3% likelihood event; 42% probability of rise over next five days)

  • Coca-Cola stock increased 4.3% over a five-day trading period ending 7/15/2021, compared to broader market (S&P500) rise of 0.9%
  • A change of 4.3% or more over five trading days (one week) is 3% likelihood event, which has occurred 69 times out of 2517 in the last ten years
  • Of these 69 instances, the stock has seen a positive movement over the next five trading days on 29 occasions
  • This points to a 42% probability for the stock rising over the next five trading days

E-commerce is eating into retail sales, but this might be an investment opportunity. See our theme on E-commerce Stocks for a diverse list of companies that stand to benefit from the big shift.

 

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