To The Moon

$Coca-Cola(KO)$ is expected to report its quarterly earnings on 23 July 2024 for the period ending 30 June 2024 before market open.

Market is expecting KO to report a fall of 1.8% in revenue to $11.753 billion from $11.97 billion compared to same period one year ago. The estimated earnings per share is 81 cents per share.

What investors should be looking out would be challenges due to macroeconomic disruptions across markets like China, Eurasia and Middle East and also the high inflationary environment in Argentina.

These should have some negative impact on KO’s top-line performance, hence, hitting its revenue.

Coca-Cola (KO) Consumer Staples For Risk Averse Investor

With KO as a pretty good consumer staples stock for the long term, if you are risk averse or like to hedge your investment portfolios, this stock could formed the consumer defensive stocks. The reason why they can be used for defensive strategy is because it is a sizeable firms that operate in industries that see stable demand during economic downturns.

But for Coca-Cola to really show some solid growth, it needs to sustain its developed market presence, and continue to innovate by launching new products and ensure that it establishes a strong foothold in the developing world.

But with the resilience driven by positive business trends mainly on a strong brand portfolio, investments across the business and revenue growth across its operating segments, aided by an improved price/mix and volume growth. The company’s volume trends have been reflecting value share gains across both at-home and away-from-home channels.

Coca-Cola (KO) Analyst Price Target

Based on 16 Wall Street analysts offering 12 month price targets for Coca-Cola in the last 3 months. The average price target is $69.50 with a high forecast of $74.00 and a low forecast of $65.00. The average price target represents a 6.45% change from the last price of $65.29.

If we were to expect a huge price move, I would not think of that, the important thing we can look out is the volume that they are selling from the different categories of products.

This might helped investors to stay positive and confident for this stock, so we might not see price decline after the earnings.

Coca-Cola (KO) Year-To-Date Gains > 12%

If we looked at the gains KO have given investors till date, it is quite reasonable at 12%. KO’s volume trends have been reflecting value share gains across both at-home and away-from-home channels.

KO should be able to benefit from the momentum across most emerging and developed markets. Strong volumes and favorable price/mix to have driven its performance.

Coca-Cola (KO) Technical MACD + KDJ Show Investors Still Confident

Despite the expectation that KO would report a decline in the revenue for second quarter, and the challenges faced due to geopolitical, KO is still showing pretty strong trend from the MACD, there is an upside movement expected for KO.

On the KDJ side, we could see a small dip at the J value, this could be due to the market condition last week where consumer staples sector did not stand out even when tech and semiconductor sector was not performing.

I would be expecting some demand (buying) by investors as KO could be one of the consumer defensive stocks loaded in the midst of uncertainities building up to the US presidential election in November.

Summary

What would be interesting for KO earnings report on 23 July is how much revenue decline is due to the macroeconomic disruptions across some markets. Low consumer confidence levels in China might played a part.

But if we looked at investors having KO as part of its portfolio under consumer defensive stock, then we should be able to see considerable demand volume, and this could help KO stock price.

Appreciate if you could share your thoughts in the comment section whether you think KO would maintain its upward movement despite market estimate revenue could delcine?

@TigerStars @Daily_Discussion @Tiger_Earnings @TigerWire appreciate if you could feature this article so that fellow tiger would benefit from my investing and trading thoughts.

Disclaimer: The analysis and result presented does not recommend or suggest any investing in the said stock. This is purely for Analysis.