Is Coca Cola a good short term buy?
 | By Ellen Johnson | Macroaxis Story |
My story will digest Coca Cola. I will analyze why it could be a much better year for Coca Cola shareholders. Coca Cola HBC elasticity to market is moves indifferently to market moves. The returns on investing in Coca Cola and the market returns of the last few months appear uncorrelated. Sound fundamental drivers of the firm may indicate signs of shorter-term price drift for shareholders of the firm. What is Coca Cola Target Price Odds to finish over Current Price? Pertaining to normal probability distribution, the odds of Coca Cola to move above current price in 30 days from now is about 45.4%. The Coca Cola HBC AG probability density function shows the probability of Coca Cola Stock to fall within a particular range of prices over 30 days . Assuming 30 trading days horizon, Coca Cola HBC AG has beta of -0.1282 . This suggests as returns on benchmark increase, returns on holding Coca Cola are expected to decrease at a much smaller rate. During bear market, however, Coca Cola HBC AG is likely to outperform the market. Additionally, the company has an alpha of 0.0834 implying that it can potentially generate 0.0834% excess return over S&P 500 after adjusting for the inherited market risk (beta).
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Reviewed by Rifka Kats
The firm has beta of 0.5. As returns on market increase, Coca Cola returns are expected to increase less than the market. However during bear market, the loss on holding Coca Cola will be expected to be smaller as well. The entity dividends can provide a clue to current valuation of the stock. Coca Cola HBC one year expected dividend income is about €0.37 per share.
Using predictive technical analysis, we can analyze different prices and returns patterns and diagnose historical swings to determine the real value of Coca Cola HBC. In general, sophisticated investors focus on analyzing Coca Cola stock price patterns and their correlations with different microeconomic environment and drivers. They apply predictive analytics to build Coca Cola's daily price indicators and compare them against related drivers such as momentum indicators and various other types of predictive indicators. Using this methodology combined with a more conventional technical analysis and fundamental analysis, we attempt to find the most accurate representation of Coca Cola's intrinsic value. In addition to deriving basic predictive indicators for Coca Cola, many experienced traders also check how macroeconomic factors affect Coca Cola price patterns. Please read more on our technical analysis page or use our predictive modules below to complement your research.
How important is Coca Cola's Liquidity
Coca Cola financial leverage refers to using borrowed capital as a funding source to finance Coca Cola HBC ongoing operations. It is usually used to expand the firm's asset base and generate returns on borrowed capital. Coca Cola financial leverage is typically calculated by taking the company's all interest-bearing debt and dividing it by total capital. So the higher the debt-to-capital ratio (i.e., financial leverage), the riskier the company. Financial leverage can amplify the potential profits to Coca Cola's owners, but it also increases the potential losses and risk of financial distress, including bankruptcy, if the firm cannot cover its debt costs. The degree of Coca Cola's financial leverage can be measured in several ways, including by ratios such as the debt-to-equity ratio (total debt / total equity), equity multiplier (total assets / total equity), or the debt ratio (total debt / total assets). Please check the breakdown between Coca Cola's total debt and its cash.
Breaking it down a bit more
The small decline in market price for the last few months could raise concerns from investors as the firm closed today at a share price of 31.48 on 15.000 in volume. The company executives did not add much value to Coca Cola investors in June. However, diversifying your holdings with Coca Cola HBC AG or similar stocks can still protect your portfolio during high-volatility market scenarios. The stock standard deviation of daily returns for 30 days (very short) investing horizon is currently 1.7581. The below-average Stock volatility is a good sign for a longer term investment options and for buy-and-hold investors. Coca Cola discloses 3.87x in price to book. Coca Cola is selling at 31.74. That is 6.15% down. Opened at 31.74. All things considered, we see that Coca Cola Moves indifferently to market moves. The firm is fairly valued with below average probability of distress within the next 24 months. Our present buy/sell recommendation on the firm is Cautious Hold.
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This story should be regarded as informational only and should not be considered a solicitation to sell or buy any financial products. Macroaxis does not express any opinion as to the present or future value of any investments referred to in this post. This post may not be reproduced without the consent of Macroaxis LLC. Macroaxis LLC and Ellen Johnson do not own shares of Coca Cola HBC. Please refer to our Terms of Use for any information regarding our disclosure principles.