Editor's Note: Any reference to TheStreet Ratings and its underlying recommendation does not reflect the opinion of TheStreet, Inc. or any of its contributors including Jim Cramer or Stephanie Link.
Trade-Ideas LLC identified
) as a "water-logged and getting wetter" (weak stocks crossing below support with today's range greater than 200%) candidate. In addition to specific proprietary factors, Trade-Ideas identified Coca-Cola as such a stock due to the following factors:
- CCE has an average dollar-volume (as measured by average daily share volume multiplied by share price) of $76.5 million.
- CCE has traded 1.8 million shares today.
- CCE traded in a range 227.7% of the normal price range with a price range of $1.44.
- CCE traded below its daily resistance level (quality: 8 days, meaning that the stock is crossing a resistance level set by the last 8 calendar days. The resistance price is defined by the Price - $0.01 at the time of the signal).
Stocks matching the 'Water-Logged and Getting Wetter' criteria are worthwhile stocks to watch for a variety of factors including historical back testing and volatility. Trade-Ideas targets these opportunities because the stock is exhibiting an unusual behavior while displaying negative price action. In this case, the stock crossed an important inflection point; namely, "support" while at the same time the range of the stock's movement in price is twice its normal size. This large range foreshadows a possible continuation as the stock moves lower.
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More details on CCE:
Coca-Cola Enterprises, Inc. produces, distributes, and markets nonalcoholic beverages. It provides still and sparkling waters, flavored waters, juice and juice drinks, sports drinks, energy drinks, teas, and coffees. The stock currently has a dividend yield of 2%. CCE has a PE ratio of 19.2. Currently there are 5 analysts that rate Coca-Cola a buy, 1 analyst rates it a sell, and 5 rate it a hold.
The average volume for Coca-Cola has been 2.2 million shares per day over the past 30 days. Coca-Cola has a market cap of $10.8 billion and is part of the consumer goods sector and food & beverage industry. The stock has a beta of 0.97 and a short float of 1.8% with 2.61 days to cover. Shares are up 26.8% year to date as of the close of trading on Friday.
rates Coca-Cola as a
. The company's strengths can be seen in multiple areas, such as its solid stock price performance, notable return on equity, attractive valuation levels and expanding profit margins. We feel these strengths outweigh the fact that the company has had sub par growth in net income.
Highlights from the ratings report include:
- Compared to its closing price of one year ago, CCE's share price has jumped by 30.39%, exceeding the performance of the broader market during that same time frame. Regarding the stock's future course, although almost any stock can fall in a broad market decline, CCE should continue to move higher despite the fact that it has already enjoyed a very nice gain in the past year.
- The return on equity has improved slightly when compared to the same quarter one year prior. This can be construed as a modest strength in the organization. Compared to other companies in the Beverages industry and the overall market, COCA-COLA ENTERPRISES INC's return on equity significantly exceeds that of both the industry average and the S&P 500.
- COCA-COLA ENTERPRISES INC' earnings per share from the most recent quarter came in slightly below the year earlier quarter. The company has suffered a declining pattern of earnings per share over the past year. However, we anticipate this trend reversing over the coming year. During the past fiscal year, COCA-COLA ENTERPRISES INC reported lower earnings of $2.25 versus $2.29 in the prior year. This year, the market expects an improvement in earnings ($2.49 versus $2.25).
- CCE, with its decline in revenue, slightly underperformed the industry average of 1.1%. Since the same quarter one year prior, revenues slightly dropped by 2.4%. The declining revenue appears to have seeped down to the company's bottom line, decreasing earnings per share.
- You can view the full Coca-Cola Ratings Report.