Worldwide brand Coca-Cola announced its release of a new flavour on February 25. It is the first release in more than a decade. Orange Vanilla Coke and Orange Vanilla Coke Zero Sugar will be available only in the US.
The company has considered three other favours – rasberry, ginger, lemon – but, in the end, it chose orange and vanilla taste. Coca-Cola brand director, Kate Carpenter, stated:
“We wanted to bring back positive memories of carefree summer days. That’s why we leaned into the orange-vanilla flavour combination – which is reminiscent of the creamy orange popsicles we grew up loving, but in a classically Coke way.”
Such a big event inevitably had an effect on brand name and its stocks. According to the second-largest stock exchange in the world, Nasdaq, the beverage behemoth popped 5 percent in the last two weeks.
Moreover, the stock prices are expected to rise even more after Coca-Cola’s report on earnings which is supposed to be published on February 14. The company often exceeds analysts’ expectations in terms of earnings; the company’s volumes have been improving year-by-year as Coca-Cola improves its beverages.
In 2018, Coca-Cola was seen declining revenue trends, as of February 10, 2018 the company stock was rated as a “buy” by 13 out of 24 analysts (or 54%). As of the end of the past year, the price was increased to $51 for one stock, implying a potential rise of ~5%. Since the start of 2019, Coca-Cola stock price has raised 4.5%.
Carter Worth, head of technical analysis at Cornerstone Macro, said:
“What I find interesting is that this sell-off [into the Dec. 24 lows] basically comes down and finds support, plus or minus, and comes to life. Finally, if you leave the bottom trend line on and put in a descending upper line, you have the set-up that I think is, ultimately, the breakout. Simple chart, simple breakout bet, earnings coming, and I like Coke long.”
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