Coca-Cola is one of the world’s largest beverage companies offering fizzy beverages, sparkling and still drinks. Some of its products include Vitaminwater, Coca-Cola Zero, Sprite, Fanta, Diet Coke, Minute Maid just to mention a few.
Coca Cola Stock - Binary Options Brokers Comparison
Asa Griggs Candler founded the company in 1886 and since then, the company has grown into a leading household brand listed on the New York Stock Exchange (NYSE).
The ticker or trading symbol for Cocal Cola is KO.
Why trade the Coca-Cola stock
Coca-Cola is arguably one of the largest and best performing stocks on NYSE. Admittedly, the company has faced its ups and downs in terms of stock performance, profits, losses and divided payouts. Even then, Coca-Cola has always managed to bounce back—this is certainly a very resilient stock in spite of the influence of external factors and fluctuating market volatility.
In February 2015, two Coca-Cola stakeholders bought shares worth close to half a million dollars, with each share costing $42. This is a good indication of the level of optimism shareholders have in the company. It is also worth mentioning that Warren Buffet, an iconic investment guru, is a Coca Cola shareholder.
According to market analysts, the Coca-Cola stock offers an impressive combination of defensive and offensive elements.
On the offensive, Coca-Cola understands how to remain competitive in the marketplace and it does this through producing new products and expanding its target market.
On the defensive, the brand is a household name; it has great economic power and a robust worldwide distribution network. Few companies in the beverage industry have the same competitive advantage that Coca-Cola has.
The other reason why Coca-Cola is a strong stock to trade is its ability to grow sales and boost profitability by catering to the evolving needs of its global customer base. It is true that demand for fizzy drinks has declined due to health regulations and a preference for healthier.
Coca-Cola has moved fast to create and distribute healthier drinks including Diet Coke, Fuze tea and Gold Peak. These non-fizzy drinks so far account for more than one billion dollars in sales.
To maintain its competitive edge, the company is cutting costs by eliminating some of its lower margin businesses to increase the return on the capital the company has invested in developing new products. In fact, by 2019, Coca-Cola will cut up to $3 billion in yearly spending.
Coca-Cola already boasts a cash flow of $29 million each day. Cost cutting is set to increase profit margins, cash flow and marketing capital.
The dividend yield is currently at 3.2%.
COCA COLA STOCK
BINARY OPTIONS BROKERS COMPARISON
Type of available binary options for Coca Cola stock
The common contract types for trading Coca Cola stocks are:
· Basic Call/Put options: Predict if the price of Coca Cola stock will move up or down before the expiry time.
· Touch options: Predict whether the price of Coca Cola stock will touch the given strike price before the expiration time.
· In/Out: Predict whether the price of Coca Cola stock will stay within a range of two strike prices.
In the first quarter of 2015, Coca Cola posted better than expected revenues and profits as the volume of beverages increased by 1%.
From the start of 2015, Coca Cola stock has lost 3.6% with the shares trading lower than their 200–day and 50-day moving averages.
The stock has a Relative Strength Index of 47.39 and a price to earnings ratio of 19.62.
Factors influencing price of Coca Cola stock
· Value of the dollar at any given time
· Economic strength of major markets including North America, Europe and the emerging markets of Asia
· Trends in consumer demand for soft carbonated drinks
· Country-specific health regulations on sugary drinks leading to taxation and impacting on sales