The Chaikin Power Gauge RatingTM for this The Coca-Cola Company $KO stock report is very bearish due to very poor financial metrics, weak earnings performance, bearish price/volume activity and negative expert opinions. KO’s financial metrics are very poor due to a high price to book value ratio and high price to sales ratio.
Financial Metrics Rating – Very Bearish
KO’s financial metrics are very poor. The company may be overvalued and has relatively low revenue per share. The rank is based on a low long-term debt to equity ratio relative to its industry group, high price to book value ratio, high return on equity, high price to sales ratio and relatively low cash flow.
Earnings Performance Rating – Bearish
KO’s earnings performance has been weak. The company experienced relatively poor earnings growth in the past 12 months and is priced relatively high compared to next year’s projected EPS. The rank is based on high earnings growth over the past 3-5 years, a relatively poor trend in earnings this year, a relatively high projected P/E ratio and consistent earnings over the past 5 years.
Price/Volume Activity Rating – Bearish
Price and volume activity for KO is bearish. KO is experiencing sustained selling and has underperformed the S&P 500 over 26 weeks. The rank for KO is based on its relative weakness versus the market, negative Chaikin money flow, a negative Chaikin price trend and a positive Chaikin price trend ROC.
Expert Opinions – Bearish
Expert opinions about KO are negative. Insiders are not net buyers of KO’s stock and analysts are lowering their EPS estimates for KO. The rank for KO is based on analysts revising earnings estimates downward, a low short interest ratio, insiders not purchasing significant amounts of stock, optimistic analyst opinions and relative weakness of the stock versus the Beverages industry group.