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NEW YORK (TheStreet) -- Coca-Cola Btlng Cons (COKE) has been upgraded by TheStreet Ratings from "hold" to "buy" with a ratings score of B. TheStreet Ratings Team has this to say about their recommendation:
"We rate COCA-COLA BTLNG CONS (COKE) a BUY. This is driven by multiple strengths, which we believe should have a greater impact than any weaknesses, and should give investors a better performance opportunity than most stocks we cover. The company's strengths can be seen in multiple areas, such as its revenue growth, growth in earnings per share, increase in net income, expanding profit margins and increase in stock price during the past year. We feel these strengths outweigh the fact that the company has had generally high debt management risk by most measures that we evaluated."
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Highlights from the analysis by TheStreet Ratings Team goes as follows:
- COKE's revenue growth has slightly outpaced the industry average of 4.8%. Since the same quarter one year prior, revenues slightly increased by 7.1%. Growth in the company's revenue appears to have helped boost the earnings per share.
- COCA-COLA BTLNG CONS has improved earnings per share by 22.3% in the most recent quarter compared to the same quarter a year ago. The company has demonstrated a pattern of positive earnings per share growth over the past year. We feel that this trend should continue. During the past fiscal year, COCA-COLA BTLNG CONS increased its bottom line by earning $2.97 versus $2.94 in the prior year. This year, the market expects an improvement in earnings ($3.74 versus $2.97).
- The net income growth from the same quarter one year ago has significantly exceeded that of the S&P 500 and the Beverages industry. The net income increased by 22.7% when compared to the same quarter one year prior, going from $11.23 million to $13.78 million.
- 43.59% is the gross profit margin for COCA-COLA BTLNG CONS which we consider to be strong. It has increased from the same quarter the previous year. Despite the strong results of the gross profit margin, COKE's net profit margin of 2.99% significantly trails the industry average.
- The stock has risen over the past year as investors have generally rewarded the company for its earnings growth and other positive factors like the ones we have cited in this report. Looking ahead, the stock's rise over the last year has already helped drive it to a level which is relatively expensive compared to the rest of its industry. We feel, however, that the other strengths this company displays justify these higher price levels.
- You can view the full analysis from the report here: COKE Ratings Report
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