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NEW YORK ( TheStreet) -- There are some stocks that should be on all watch lists so you can pick up a few shares during periods of weakness.
Coca-Cola(KO - Get Report) is just such a stock. This is a worldwide brand that still has new markets to penetrate.
Lately the stock has been showing some weakness but still holds its own against the market, as this graph provided by Barchart shows. During the past six months, while the stock is up 2%, the market as measured by the Value Line index was up 3%:
Coca-Cola is a beverage company and engages in the manufacture, marketing, and sale of nonalcoholic beverages worldwide. The company offers its beverage products through company-owned or controlled bottling and distribution operators, as well as through independently owned bottling partners, distributors, wholesalers, and retailers. The company was founded in 1886 and is headquartered in Atlanta, Ga. (Yahoo Finance Profile)
Factors to Consider:
Technical indicators provided by Barchart:
At the present time the stock rates a 48% Barchart technical sell signal and a Trend Spotter sell signal. Temporary technical sell signals can be a good time to buy stocks with solid fundamentals.
Although the stock is trading above its 20-day moving average, it has recently fallen below its 50- and 100-day moving averages. In the past month the stock lost 1.40% but is only 6.73% off its one-year high. The very weak Relative Strength Index of 28.19% and a technical support level of $37.26 may signal an accumulation point on this stock that has recently traded at $37.95.
Wall Street has always had this stock on its core holding model portfolios and 12 brokerage firms have assigned 18 analysts to monitor the stock numbers. These analysts predict revenue will grow 3.4% this year and another 5.1% next year.
Earnings are estimated to grow 3.6% this year, an additional 9.5% next year and continue to grow at an annual rate of 7.38% for the next five years. The P/E ratio of 19.40 is slightly higher than the market P/E of 15.30. The dividend rate of 2.68% is about 50% of projected earnings and above the market dividend rate of 2.30%. Analysts think, if these numbers are correct, investors could see a total annual return in the 10% to 12% range over the next five years.