COCA COLA (KO) STOCK: JULY 26TH IS GOING TO BE A BIG DAY!

Coca Cola’s moment of truth is going to come very soon. Recently, there has been quite a bit of concern surrounding the company considering consumer habit changes and currency headwinds. However, on July 26^th, the company is going to be releasing its earnings report for the most recent quarter before the market opens. Of course, if the report is positive, the stock could find its way upward. However, a negative report would likely confirm investor fears, leading to declines. Today, we’ll talk about changing consumer habits, currency headwinds, what analysts are expecting to see from the earnings report, and what investors and traders should be watching for ahead.

CHANGING CONSUMER HABITS ARE BAD NEWS FOR COCA COLA

As mentioned above, there have been some serious concerns surrounding Coca Cola as of late. In fact, the past several earnings reports have been hit by a slurry of year over year revenue and earnings declines. Much of the concern surrounding the stock ultimately revolves around the consumers who purchase Coca Cola products in general.

You see, throughout the years, consumers have become more health conscious. One big issue for Coca Cola is that not only their flagship product, but most of their products are high-sugar, carbonated beverages. These types of beverages have been proven to cause various health ailments according to several clinical studies. To name a few of the problems here, drinking sugary beverages is known to cause weight gain, type 2 diabetes, heart disease, and gout.

As a result, health conscious consumers are starting to make changes to their dietary habits. In particular, consumers are looking to become more healthy by reducing their consumption of sugar and other ingredients that are known to cause health problems.

CURRENCY HEADWINDS

Another major issue for Coca Cola, especially in recent quarters, has been currency headwinds. This is a very simple problem to understand. Ultimately Coca Cola is a United States based business. Therefore, it does business in the USD currency. However, as of late, the USD has been relatively strong compared to other world currencies. As a result, Coca Cola has had 2 options here. Either they charge more in local currencies for their products in foreign nations, or they accept less money for their products thanks to reduced currency values in the areas these products are sold.

WHAT’S EXPECTED FROM THE COCA COLA EARNINGS REPORT?

As mentioned above, Coca Cola will be reporting its earnings on the 26^th of July before the market opens. For this quarter, analysts are expecting that the company will generate earnings per share in the amount of $0.58. If this is indeed the case, it will show yet another year over year decline from the same quarter last year when the company reported earnings in the amount of $0.60 per share.

WHAT YOU SHOULD BE WATCHING FOR AHEAD

Moving forward, Coca Cola is likely to become an interesting play to say the least. The catalyst here is likely going to be the company’s earnings report. As mentioned above, while a beat on the report would likely alleviate some of the fears investors are acting on, a poor report could only exacerbate those fears. So, keep your eyes peeled as the report will likely give you clues as to where Coca Cola is headed moving forward!

This article was written for marketing purposes and does not constitute investment advice. The information in the article represents the general views of our experts and does not take into consideration the personal circumstances, investment experience or financial situation of any reader.