Coca-Cola Trading forecasts and signals

The Coca-Cola Co reported quarterly earnings that beat expectations as the company's sales at restaurants, theaters and other locations began to recover from the pandemic.Net income for the 2nd quarter was $1.91 billion, or $0.44 per share. A year ago it was $2.64 billion, or $0.61 per share. Coca-Cola said that its revenue for the reporting period increased by 12% compared to last year due to higher prices. Before the pandemic, Coca-Cola received about half of its income from activities held outside the home, such as going to the cinema or restaurant.However, Coca-Cola is facing rising production costs, as well as the consequences of the geopolitical conflict. The company's operating margin in the 2nd quarter was 20.7% compared to 29.8% in the previous year. On an adjusted basis, the indicator decreased to 30.7% from 31.7%.Management expects organic revenue growth from 12% to 13%, when the previous forecast was from 7% to ...

Profit and revenue of The Coca-Cola Co (NYSE: KO) for the fourth quarter exceeded analysts' expectations. The consumption of the company's products outside the home exceeded the pre-pandemic level.At the same time, management forecasts turned out to be more cautious than the market expected. The company believes that inflation will continue to put pressure on profits throughout the year. PepsiCo, Coca-Cola's main competitor, has also incorporated this factor into its forecasts.Coca-Cola's net income for the fourth quarter increased from last year's $1.46 billion ($0.34 per share) to $2.41 billion ($0.56 per share). Net sales increased by 10% to $9.46 billion, with consensus at $8.96 billion. Organic revenue and commodity volume increased by 9%. Sales of Coca-Cola carbonated beverages rose by 8%, and Coke Zero Sugar sales volumes showed double-digit growth.Sales of snacks, juices, dairy products and plant-based beverages increased by 11%.Sales of sports, coffee and tea drinks increased by 12%. After the takeover of Bodyarmor, sales of sports drinks increased most actively. The volume of sales of coffee and beverages based on it increased by 17%, after the resumption of the Costa cafe chain in the UK. This is the second most intense sales result.In 2022, Coca-Cola forecasts comparable earnings per share growth of 5-6% with a market consensus of 6.1%. Organic revenue growth, according to the company's calculations, should be 7-8%.We rate Coca-Cola's report as moderately positive and note an increase in consumer mobility. Coca-Cola's product line is narrower than PepsiCo's, which, due to the presence of a segment for the production of snacks, was able to survive much better during the period of restrictions when these products were in high demand. Coca-Cola's priority is sales through external channels: catering, entertainment facilities and events. The gradual reduction of pandemic-related restrictions allowed the company to regain momentum. In addition, Coca-Cola is actively expanding towards the fast-growing segment of energy drinks. Unlike many beverage manufacturers, Coca-Cola has its own production facilities, so it does not depend on suppliers working under contract. At the same time, there is a shortage of aluminum on the market, which is necessary for the production of packaging. We believe that its shortage will continue throughout 2022. Nevertheless, we are raising the target price for Coca-Cola shares to ...

Today, there are quite a few companies engaged in developments in the field of artificial intelligence (AI) on the financial market. Some companies regulate their activities as related to this area, but in reality only a small percentage of such assets are available for purchase.Today, the development of AI intelligence is still not enough to classify it as one of the spheres of the world economy. However, technologies are already widespread and are actively used in medicine, education, automotive and mechanical engineering, as well as in industry and finance. Literally in 10 years, changes in these and other areas are inevitable.According to analysts' forecasts, by 2030, artificial intelligence will add almost $15.7 trillion to the global GDP, which is 14% of the current figure in percentage terms. The maximum contribution will be provided by China - about 7 trillion dollars and America-up to 3.6 trillion.Contrary to the opinion of the majority, GDP growth will not lead to an increase in costs, but in most areas of activity it will reduce them, as well as free people from any routine tasks, which will allow them to focus on added value, creativity or strategy. Perhaps the only negative aspect in this case is the loss of jobs by those who previously performed this routine work.Next, for example, let's consider several companies that successfully conduct their activities in the field of AI development and implementation.Palo AltoLet's start our review with Palo Alto Networks, one of America's leading developers in the field of network security. The company has organized a platform that functions through advanced firewalls and cloud applications designed to protect network attacks by hackers. The main task is to ensure the round-the-clock security of customer data and the protection of the network based on the help of AI.It is the latter factor that allows you to predict possible threats, and the platform can instantly respond to them. The AI developed by this company is capable of self-learning, which significantly increases the level of protection of the system, blocking threats. In the process, self-learning takes place, which allows you to prevent and even predict the probability of hacker attacks in the future.It is the efficiency of the platform that has become the basis for a systematic increase in the company's revenue. For the 3rd quarter of this year, this indicator increased by 24% compared to the same reporting period last year. In monetary terms, it amounted to just over $3 billion. Against the background of income, there is a noticeable increase in the expenditure part. In its net form, the issuer's loss amounted to 380 million, whereas a year ago this figure varied within 210 million.The company's losses are fully explained by current purchases and non-monetary expenses. In accordance with non-GAAP indicators, the issuer's net profit for the reporting period amounted to $452 million. After the last financial report, management raised its forecast and expects revenue of 4.2 billion by the end of the year, which is 23% more than the previous reporting year.Today, the price-to-sales ratio is about 10 units, which encourages shareholders to further acquire assets that are currently considered a profitable investment. In addition, it should be said that the sales coefficient has remained unchanged for a long time. Against the background of increased demand for security in the network, the growth of the issuer's profitability will only increase.UiPath IncAnother company notable for its success in the field of the artificial intelligence industry. The company is engaged in software development, specializes in robotic automation of RPA processes. The main component of the work is AI. All interaction is carried out through the operation of an integrated platform for automating robotic processes. The platform's work is based on innovative RPA solutions and AI capabilities.Despite the promising developments and high demand for them, the company's shares made an unexpected drop in price, and then froze sideways. Is there a reason why they should be bought now?Experts recommend taking a risk, especially since recently the company's activities have been in full view and have become much more active. Not so long ago, the company announced a cooperation with Smartsheet, which, according to analysts, will only benefit both companies. For UiPath Inc, this will allow you to automate workflows. This shows how much the company cares about its own consumers, quickly adapting to changing requirements.Today, UiPath Inc is considered one of the largest communities in the world, since the number of its regular customers is more than 1.4 million. In addition, the company started the financial year as strongly as possible, completing the first quarter with a profitable and interesting report. For example, the revenue for the specified period of time amounted to 186.2 million rubles, which is 65% more than for the same period of time last year.TwilioTwilio was created to combine phones, computers, tablets and other gadgets belonging to the customer company into a single, comfortable business network. The main field of activity is the creation of cloud-based application programming interfaces, using which developers can embed video, audio and other files into their products.The scale of the client profile is approaching the mark of 150 thousand companies, among which it is worth noting such business giants as Uber, Morgan Stanley, Lyft. If we talk about the last of them, it uses Twilio to manage the support center, and Twitter – for voice communication.It is too early to talk about the profitability of this business, since the company is still quite young. At the same time, the size of the market capitalization has already reached $52 billion. The company's list of clients includes quite large and well-known concerns that need innovations, so the amount of revenue will constantly grow.According to forecasts, earnings per share will grow by 230% during the current year, and by the end of the year, EBITDA will increase by 131%, Total revenue will grow by 35%.Taking into account the high indicators of the current and previous years, as well as the increasing demand of the artificial intelligence market, the company's assets are quite attractive from the point of view of investment. Experts still recommend entering the market on a decline and waiting for tangible results for at least 5 years.AlteryxThis platform gives users the opportunity to perform various actions with any data – to profile, prepare, mix, analyze, etc. After that, any authorized users can use the information.The list of consumer companies includes such large ones as Coca-Cola, Walmart, Amway, etc. For example, COVID-19 research is currently being conducted in Castor medical laboratories. An equally interesting fact is the savings of Amway in the annual amount of $80,000 due to the use of Alteryx technologies.For future reporting periods, the earnings per share indicator is projected to decrease by 5%, but by the end of the year it should grow by 28%. The indicator of the median analytical target as of 12 months is 13% higher and amounts to $149. Experts recommend buying shares of the company for a long-term period.Every year, AI penetrates more and more into people's lives, and the successes of the sphere become as noticeable as possible. What was associated with these technologies 10 years ago resembled the dreams and predictions of science fiction writers. However, today many things have become our reality.In conclusion, it is worth noting that the companies we are discussing today are working in different areas of IT science. AI is by no means their main focus. When planning to invest in AI, try to choose the optimal investment portfolio from the assets of several ...

They say there is nothing to do at the market in the summer. But not this year. Last week, the reporting season started in the United States. The reports of American companies for the second quarter promise to be interesting. They will summarize the results of the first half of the year and allow you to make forecasts for the second half of 2021.Why follow the reports?The publication of reports allows you to look at the reported company with new eyes — to see it "as for the first time", re-evaluate the prospects for its development and find new objects for investment.Many companies in their reports give forecasts not only for their activities, but also for the development of the sector as a whole, and also share important statistics. This information helps to analyze the prospects of the issuers themselves and the industries in which they operate. The main points that may affect the forecasts of companies this season are the prospects for the global economic recovery, the fiscal policy of the Joe Biden administration, and trade relations between the United States and China.For speculators, the reporting season is interesting with strong movements in the market. Since companies in the United States usually publish reports before or after trading, significant "gaps"often occur at the opening of the trading session after the release of the report.How did the reporting season start?The reporting season in the United States, as usual, began with the publication of the financial results of the banking sector. Five of the six largest banks reported significantly higher than expected and reduced the volume of loan reserves, signaling that the risks associated with the pandemic are receding.In addition to banks, some large companies from other sectors — for example, PepsiCo and Delta Air Lines-managed to report. And companies such as Nike, Micron Technology and Oracle generally report much earlier than the traditional reporting season.This week, investors are waiting for reports from Netflix, Philip Morris, Johnson & Johnson, Coca-Cola, Verizon, Intel, AT&T, Twitter and many other companies.What are the forecasts?According to statistics, in the last five years, in 75% of cases, the reporting of American companies exceeded analysts ' forecasts, and in the 1st quarter of this year, 86% of the reported issuers beat the expectations (this is the maximum level for five years). On the one hand, such high figures may indicate the strength of the US corporate sector, but there is a feeling that companies and analysts are deliberately making too conservative forecasts in order to give shares a boost to growth at the reporting release. From these positions, 85% is more frightening than encouraging figure.According to forecasts, in the second quarter, the percentage of companies whose financial results will be better than expected will be 77-80%. It is also predicted that the consolidated EPS of the S&P 500 index in the second quarter will show an increase of 63.6% y/y and 6.5% q/q.How will the reporting season affect the market?If this reporting season does not bring a big negative, we can expect further growth of the American stock market. If the reports are worse than expected, and the situation with the coronavirus pandemic worsens, or the Fed begins to curtail its stimulus policy, a correction may begin in the market.In general, there are 2-3 companies in each sector of the economy, whose reporting largely sets the tone for the dynamics of shares in the entire sector as a whole.Whose reports are of the greatest interest this week?  Netflix (NASDAQ: NFLX) On July 20, the second season of “The Witcher” may cause a new rally for the company's shares. The company is also entering the video game market: Netflix has hired Mike Verda, who was developing video games for Facebook's Oculus virtual reality headsets (NASDAQ: FB).Coca-Cola (NYSE: KO) On July 21, the main intrigue of this report is how much the company's sales will fall after the episode with Cristiano Ronaldo, who at one of the press conferences removed bottles of Coca-Cola from the table with the words "Drink water!".Johnson & Johnson (NYSE: JNJ) On July 21, investors will be watching with interest how the company's results were affected by the suspension of sales of its coronavirus vaccine in the United States due to concerns that this vaccination contributes to the formation of blood clots. Recall that in the 1st quarter, the company's profit from sales of the vaccine amounted to $100 million, that is, just over 2% of the total profit.Twitter (NYSE: TWTR) On July 22, Twitter launches a "blue" subscription. Twitter Blue allows you to set a delay of 30 seconds when publishing a message and correct typos before the tweet is published. The subscription also provides access to an improved bookmark system for saved tweets. The subscription price is $2.99 per month.American Airlines (NASDAQ: AAL) On July 22, American Airlines announced an improvement in its forecasts for the results of the second quarter. The airline's forecasts range from a net loss of $35 million to a net profit of $25 million for the quarter.American Express (NYSE: AXP) On July 23, the company is expected to present a strong report, as well as report a decrease in reserves to cover the risks associated with the coronavirus pandemic.How to analyze the reporting? Tips for investorsExamine the reporting calendar and select the reports that you will track. Study the company and the sector in which it operates in advance.Remember: buying shares before the report is released is a big risk, although the market can give you a good premium for your courage.Do not rush to buy paper immediately after the release of the report: study the figures and assess the company's prospects on the short, medium and long time horizon.Compare the published figures with the forecasts of the company itself and independent ...

Coca-Cola quotes continue to move within the correction and bullish channel. Moving averages indicate the presence of a short-term sideways trend in KO. Prices broke through the area between the signal lines down, which indicates pressure from sellers of securities. At the time of publication of the forecast, the value of Coca-Cola shares is 54.30. As part of the forecast of the KO stock price, we should expect an attempt to develop a correction and a test of the support level near the 52.00 area. Next, a rebound up and a continuation of the rise in the value of securities. The potential target of such a movement is the area above the level of 62.50.An additional signal in favor of the rise of KO quotes will be a test of the support line on the relative strength indicator (RSI). The second signal will be a rebound from the lower border of the bullish channel. The cancellation of the option of increasing the quotations of the Coca-Cola company's share price will be a fall and a breakdown of the 50.00 level. This will indicate a breakdown of the support area, as well as the lower border of the channel and the continuation of the fall to the area at the level of 45.00. We should expect an acceleration of the stock's rise with a breakdown of the resistance area and a close above the 57.50 level.Coca-Cola shares forecast for July and August 2021Thus, Coca-Cola shares forecast for July and August 2021 suggests the development of a correction and a test of the support area near the level of 52.00. From where we should expect a rebound and an attempt to continue the stock's rise to the area above the level of 62.50. The trend line test on the relative strength indicator will be in favor of the growth of securities. The cancellation of the KO rise option will be a fall and a breakdown of the 50.00 level. This will indicate a breakdown of support and a continuation of the fall in the price to the area below the level of 45.00. As you can see, the technical analysis of Coca-Cola shares indicates the probability of a minor correction, but the potential for a rise is quite ...