Coca-Cola (KO) Down In Early Morning Trading

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 Coca-Cola ( KO) as a pre-market laggard candidate. In addition to specific proprietary factors, Trade-Ideas identified Coca-Cola as such a stock due to the following factors:

  • KO has an average dollar-volume (as measured by average daily share volume multiplied by share price) of $506.0 million.
  • KO traded 51,117 shares today in the pre-market hours as of 8:04 AM.
  • KO is down 2.1% today from Friday's close.

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More details on KO:

The Coca-Cola Company, a beverage company, manufactures and distributes coke, diet coke, and other soft drinks worldwide. The company primarily offers nonalcoholic beverages, including sparkling beverages and still beverages. The stock currently has a dividend yield of 2.9%. KO has a PE ratio of 22.5. Currently there are 9 analysts that rate Coca-Cola a buy, 1 analyst rates it a sell, and 6 rate it a hold.

The average volume for Coca-Cola has been 11.9 million shares per day over the past 30 days. Coca-Cola has a market cap of $185.1 billion and is part of the consumer goods sector and food & beverage industry. The stock has a beta of 0.35 and a short float of 1.3% with 5.25 days to cover. Shares are up 1.7% year-to-date as of the close of trading on Friday.

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TheStreetRatings.com Analysis:

TheStreet Quant Ratings rates Coca-Cola as a buy. The company's strengths can be seen in multiple areas, such as its expanding profit margins, good cash flow from operations, reasonable valuation levels and notable return on equity. We feel these strengths outweigh the fact that the company has had generally high debt management risk by most measures that we evaluated.

Highlights from the ratings report include:
  • The gross profit margin for COCA-COLA CO is rather high; currently it is at 65.87%. It has increased from the same quarter the previous year. Along with this, the net profit margin of 15.30% is above that of the industry average.
  • Net operating cash flow has significantly increased by 123.01% to $1,066.00 million when compared to the same quarter last year. In addition, COCA-COLA CO has also vastly surpassed the industry average cash flow growth rate of -6.56%.
  • COCA-COLA CO's earnings per share declined by 7.7% in the most recent quarter compared to the same quarter a year ago. 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 CO reported lower earnings of $1.90 versus $1.96 in the prior year. This year, the market expects an improvement in earnings ($2.10 versus $1.90).
  • KO, with its decline in revenue, slightly underperformed the industry average of 2.9%. Since the same quarter one year prior, revenues slightly dropped by 4.2%. The declining revenue appears to have seeped down to the company's bottom line, decreasing earnings per share.

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