Coca-Cola Stock Scaling Dow After Revenue Beat

KO's revenue beat stems from increased demand for zero-sugar sodas

Managing Editor
Oct 18, 2019 at 9:59 AM
facebook twitter linkedin


Near the top of the Dow today sits The Coca-Cola Co (NYSE:KO), up 1.9% to trade at $54.79. This comes after the beverage giant reported third-quarter adjusted earnings of 56 cents, on revenue of $9.5 billion, the latter of which topped the consensus estimate $9.4 billion. The company also upped its full-year guidance, citing increased demand for zero-sugar sodas.

Coca-Cola stock is cruising toward its best week since July 26. The shares had pulled back from their Sept. 4 record high of $55.92, but found support at their 100-day moving average. Year-to-date, KO is now up 15.9%, right in line with the Dow's 2019 lead of 15.8%. 

So far, no analysts have come forward with any bull notes. There is certainly room aboard the bullish bandwagon, considering eight out of the 14 in coverage rate the stock a tepid "hold." Plus, KO's consensus 12-month price target sits at $57.48, just above its current perch.

In the options pits, there's been a heavy preference toward calls. At the International Securities Exchange (ISE), Cboe Options Exchange (CBOE), and NASDAQ OMX PHLX (PHLX), the stock's 10-day call/put volume ratio of 2.83 ranks in the elevated 79th annual percentile, meaning calls have been bought to open over puts at a quicker-than-usual clip. Calls are popular already today, too, more than doubling the number of puts crossed so far, and already topping the daily average.

Make the Most of the next Expiration Week Countdown!


 




 
Special Offers from Schaeffer's Trading Partners