Coca-Cola (KO) stock could return to test its March record

The Coca-Coca share benefits from its defensive aspect and the market rebound

The action of the soda giant Coca-Cola (KO) continues to benefit from its defensive aspect in this period of uncertainty marked by an increasingly high risk of recession on both sides of the Atlantic.

Like its competitor Pepsi, Coke is appreciated in periods of economic uncertainty thanks to relatively stable financial results, thus making it possible to maintain previous levels of dividends. The company is much less affected by economic cycles than most large publicly traded companies, thus attracting capital when economic uncertainties mount.

Coca-Cola presented better than expected financial results in the second quarter and even allowed itself to raise its forecast for annual internal growth despite the deterioration of the economic outlook. In the second quarter, the world’s number one sodas recorded adjusted earnings per share of $0.70, exceeding analysts’ expectations by 3 cents.

Coca stock has spent most of its time in positive territory since the start of the year and has rebounded more than 4% since the start of the week on the back of market operators’ renewed risk appetite. The title regained height with all the stock markets around the world at the end of June and this week, thus allowing it to overcome a significant downward slant which has passed through the major peaks since the March record.

Coca-Cola (KO) stock price daily chart – key levels

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