Today's Strong And Under The Radar Stock: Coca-Cola Femsa SAB De CV (KOF)

Trade-Ideas LLC identified Coca-Cola Femsa SAB de CV ( KOF) as a strong and under the radar candidate. In addition to specific proprietary factors, Trade-Ideas identified Coca-Cola Femsa SAB de CV as such a stock due to the following factors:

  • KOF has an average dollar-volume (as measured by average daily share volume multiplied by share price) of $6.1 million.
  • KOF has traded 3.686599999999999877076106713502667844295501708984375 options contracts today.
  • KOF is making at least a new 3-day high.
  • KOF has a PE ratio of 19.
  • KOF is mentioned 0.39 times per day on StockTwits.
  • KOF has not yet been mentioned on StockTwits today.
  • KOF is currently in the upper 20% of its 1-year range.
  • KOF is in the upper 35% of its 20-day range.
  • KOF is in the upper 45% of its 5-day range.
  • KOF is currently trading above yesterday's high.

'Strong and Under the Radar' stocks tend to be worthwhile stocks to watch for a variety of factors including historical back testing and price action. Market technicians refer to such stocks as being in an accumulation phase before a mark-up and peak. Traders and hedge funds have frequently found that these types of stocks continue to build a solid price base and then ultimately spike higher and peak when others 'discover' how good the stock is performing. By leveraging the social discovery aspect of StockTwits we are highlighting stocks that don't currently receive much attention from retail investors, but we suspect may soon garner more attention.

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More details on KOF:

Coca-Cola FEMSA, S.A.B. de C.V., a franchise bottler, produces, markets, sells, and distributes Coca-Cola trademark beverages. The stock currently has a dividend yield of 2.3%. KOF has a PE ratio of 19. Currently there is 1 analyst that rates Coca-Cola Femsa SAB de CV a buy, 1 analyst rates it a sell, and 3 rate it a hold.

The average volume for Coca-Cola Femsa SAB de CV has been 106,900 shares per day over the past 30 days. Coca-Cola Femsa SAB de CV has a market cap of $16.6 billion and is part of the consumer goods sector and food & beverage industry. Shares are up 14.8% year-to-date as of the close of trading on Tuesday.

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TheStreetRatings.com Analysis:

TheStreet Quant Ratings rates Coca-Cola Femsa SAB de CV as a hold. The company's strengths can be seen in multiple areas, such as its reasonable valuation levels, largely solid financial position with reasonable debt levels by most measures and expanding profit margins. However, as a counter to these strengths, we find that the company's return on equity has been disappointing.

Highlights from the ratings report include:
  • The debt-to-equity ratio is somewhat low, currently at 0.67, and is less than that of the industry average, implying that there has been a relatively successful effort in the management of debt levels. Although the company had a strong debt-to-equity ratio, its quick ratio of 0.73 is somewhat weak and could be cause for future problems.
  • 49.95% is the gross profit margin for COCA-COLA FEMSA SAB DE CV which we consider to be strong. Regardless of KOF's high profit margin, it has managed to decrease from the same period last year. Despite the mixed results of the gross profit margin, the net profit margin of 6.46% trails the industry average.
  • After a year of stock price fluctuations, the net result is that KOF's price has not changed very much. Although its weak earnings growth may have played a role in this flat result, don't lose sight of the fact that the performance of the overall market, as measured by the S&P 500 Index, was essentially similar. The fact that the stock is now selling for less than others in its industry in relation to its current earnings is not reason enough to justify a buy rating at this time.
  • The company's current return on equity has slightly decreased from the same quarter one year prior. This implies a minor weakness in the organization. When compared to other companies in the Beverages industry and the overall market, COCA-COLA FEMSA SAB DE CV's return on equity is below that of both the industry average and the S&P 500.

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