Coca-Cola stock: buy or sell
Aug 1st, 2021
Coca-Cola stock brief
- Coca-Cola closed on Friday at $57.03 after just changing a -0.04%.
- With the recent gains, Coca-Cola is approaching to new all-time highs again, that are now just 0.92% above the current price
- On July 20, Coca-Cola released its Q2 earnings report
- The Coca-Cola Company, a beverage company, manufactures, markets, and sells various nonalcoholic beverages worldwide.
Should I buy Coca-Cola stock?
Even if you are a experienced or a novel trader, best trading results come from using an investing strategy that never leaves to random or subjective opinions when is the best moment to buy or sell stocks. Trading strategies are meant for helping you in the decision process of what stocks to pick and when is the best moment to buy them. At Stocks2.com, we like to use very simple but trusted and powerful trend following trading strategies. Simple things usually work the best
Is $KO stock a buy?
Currently, Coca-Cola stock matches 2 trading strategies:
Uptrend buy setup
Coca-Cola stock continues to trend higher since last January and has marked a gorgeous 20.42% gain. Price marked a pull back in this uptrend at $53.55 in early July, and since then it bounced off a 6.50%. Price just broke out above the entry point at $56.06, but it's still eligible. If price goes above $58.86, you should not chase the price and wait for another opportunity. If you decide to enter this trade, the suggested stop loss is at $51.94
|Buy setup||Buy point||Stop loss||Risk|
|Uptrend buy setup||$56.06||$51.94||7.34%|
ATH buy setup
One of the most recommended trading strategies is to buy on All-time Highs (ATH) breakouts. The good point of buying at ATHs is that price doesn't struggle with upper resistances, and usually it rises rapidly. However, there's the risk of a bulls trap that may trigger your buy order and then drops sharply. That's why a stop loss is so important. Price is now at 0.93% of all-time highs and it can breakout at any time, so if you want to trade this setup it's recommended to setup your order at $57.56. The stop loss would be set at $51.94
|Buy setup||Buy point||Stop loss||Risk|
|ATH buy setup||$57.56||$51.94||9.76%|
Should I sell Coca-Cola stock?
Do you know when is it time to sell Coca-Cola?. Trading strategies let us to avoid impulsive decisions based on our personal moods or the noise that surrounds the market. When selling, as well as buying, detailed strategies are very simple to use and are only valid for selling shares you already own, not for shorting Coca-Cola stock
As a rule of thumb, you should not keep an investment that results in higher than expected losses at the time of purchase. When to sell your stock always has to be dictated by the stop-loss (automatic or manual)
Is it time to sell Coca-Cola stock?
In the current situation of Coca-Cola there is not any eligible sell setup, so Coca-Cola stock holders with operations in green can keep their positions
We don't have any rating posted in the previous 30 days for Coca-Cola
Coca-Cola stock analysis
Coca-Cola stock started an uptrend last January, and gained an amazing 20.42%. The price action shows higher peaks and higher lows, and along the way provided some buying opportunities for those who wanted to enter. Latest low was in early July, when price bounced at $53.55. Coca-Cola broke out above $56.06 (its last top) on July 21. That breakout was a good buying opportunity
$KO near to All-time Highs
Close to ATH
Supports and resistances
The current resistances are:
The current support levels are:
Since the price surpassed the upper band on July 23, the price dropped by 0.52%. The price is moving near to the upper Bollinger band, poiting some level of overbought in recent sessions. This is not a bearish indicator, as price can move in these levels for many days and weeks
Relative strength index
The RSI dropped below the overbought level of 70 last Wednesday after just crossing to the overbough zone for 1 day (weak signal). The RSI value on Friday was 64.58
Coca-Cola stock price history
Coca-Cola went public on Jan 2nd, 1962 priced at $0.05 per share1. Since then, KO stock has risen by 113,960.00%, with an average of 1,931.53% per year. An investment of thousand dollars on the IPO would be valued $1,140,600.00 today.
1: Adjusted price after possible price splits or reverse-splits
Price target for Coca-Cola stock
How much a stock will be priced tomorrow or next week is quite unpredictable. Banks and financial organisations publish their analysis forecasting how a stock will performance in the future.
The following table shows the price predictions posted by analysts for the last 30 days. If you are a small trader you don't have to trade based on these projections.
We don't have any target price posted in the last 30 days for Coca-Cola.
Earnings and financials
Shareholders event was hosted by Coca-Cola ($KO) on July 20 after releasing the financial report. Coca-Cola posted earnings of $0.68 per share on revenue of $10.1 billion. The analysts estimate was $0.55 per share on revenue of $9.3 billion.In comparing, the EPS for the same quarter last year was $0.42, so posted EPS is a gain of 61.90%. Turnover skyrocketed a 41.66% on an annualized basis in the , from $71.5B to $101.3B last quarter.
Coca-Cola ($KO) is hosting the earnings call next October. Estimated for this quarter is $0.58, compared to $0.68 that was reported for Q2.
Disclaimer:The comments given in this article are personal and should not be followed as recommendations for you to buy or sell shares. The author of this document does not know the particular conditions of the reader, his or her financial statements or what is in his or her best interest at any given time. All users should speak with their financial advisor before buying or selling any securities Viewpoints are provided for learning motives only
|Friday, July 30th, 2021|
|Day range||$56.9 - $57.25|
|Average true range||$0.97|
|50d mov avg||$55.13|
|100d mov avg||$53.94|
|200d mov avg||$52.02|
|Earnings date||October 20th, 2021|