Coca-Cola Updates Guidance Amid Coronavirus Fears

Coca-Cola reaffirmed its full-year outlook, though

Managing Editor
Feb 21, 2020 at 10:16 AM
facebook twitter linkedin

Companies are starting to unravel how the coronavirus outbreak will affect their bottom line, and the results haven't been pretty. Coca-Cola Co (NYSE:KO) adjusted its own outlook this morning, cutting its current-quarter earnings by one to two cents per share. While China is the company's third-largest market in terms of unit case volume, Coca-Cola did reaffirm its full-year guidance.

In response, Coca-Cola stock is hanging tough today, trading flat at $59.66 while most of Wall Street sells off. KO has been on a roll to start 2020, nabbing a record high of $60.07 on Feb. 14. Although that $60 level has proven elusive, a short-term floor has emerged at the $59 level, which is also home to the shares' 20-day moving average.

For a stock that's up 32.4% in the last 12 months, analysts remain split. There are 14 brokerages in coverage of KO, and seven rate it a tepid "hold," while the consensus 12-month price target of $63.50 is a slim 6.3% premium to last nights closing perch at $59.72.

Meanwhile with earnings come and gone, a volatility crush means the stock's near-term options are attractively priced at the moment. Schaeffer's Volatility Index (SVI) stands at 14%, in the 20th percentile of its annual range. This indicates that now is an attractive time to jump aboard the Dow name with options.


Minimize Risk While Maximizing Profits

There is no options strategy like this one, which consistently minimizes risk while maintaining maximum profits. Perfect for traders looking for ways to control risk, reduce losses, and increase the likelihood of success when trading calls and puts. The Schaeffer’s team has over 41 years of options trading success targeting +100% gains on every trade. Rest assured your losses are effectively limited to your initial cost at the time of making your move! Don't waste another second... join us right now before the next trade is released! 



Special Offers from Schaeffer's Trading Partners