Near-Term, Can This Stock Move the Needle: Coca-Cola FEMSA, S.A.B. de C.V. (NYSE:KOF)

Coca-Cola FEMSA, S.A.B. de C.V. (NYSE:KOF) stock is pricing at $70.84 after moving 1.20% thus far this session.  Technical levels will be in focus as the volatility has increased given recent attention.  

After a recent check, shares of Coca-Cola FEMSA, S.A.B. de C.V. (NYSE:KOF) have been seen trading -2.64% off of the 50-day high and 7.49% away from the 50-day low. In terms of the stock price in relation to its moving averages, company shares are 1.63% away from the 20-day moving average and 2.85% off of the 50-day average. If we take a wider approach, shares have been trading -7.70% away from the 200-day moving average.

Over the last year, Coca-Cola FEMSA, S.A.B. de C.V. (NYSE:KOF)’s stock has performed 17.21%. For the last six months, the stock has performed -19.35%. From the start of the calendar year, shares have been 1.75%. Zooming in closer, company stock has been -3.50% for the quarter, 3.05% over the past month, and 0.88% over the past week.

Beta is used to measure a stock’s price volatility relative to the market. A stock with a beta of “0” indicates that its price is not correlated with the market. A positive beta indicates that the stock follows the market. A negative beta means that the stock inversely follows the market, decreasing in value when the market goes up. Coca-Cola FEMSA, S.A.B. de C.V. (NYSE:KOF) current has a Beta score of 0.89.

FUNDAMENTAL ANALYSIS

Fundamental analysis examines the financial elements of a company, for example; sales, cash flow, profit and balance sheet.  These numbers are then crunched to create theoretical valuations of companies. 

Earnings Per Share (EPS) is the earnings made by a company divided by their number of shares.  EPS enables the earnings of a company to easily be compared to their competitors. The higher the number, the more profit per dollar is being made on investor capital.  Coca-Cola FEMSA, S.A.B. de C.V.’s EPS is 3.40.  Their EPS should be compared to other companies in the Consumer Goods sector.

Price-to-Earnings Ratio is the current share price divided by annual earnings per share.  P/E provides a number that details how many years of earnings it will take a stock to recoup the value of one share at current price levels.  Easy to calculate and understand, P/E is an extremely common ratio that is used to compare valuations of stocks against each other relatively.  Coca-Cola FEMSA, S.A.B. de C.V.’s  P/E ratio is 20.85. 

Projected Earnings Growth (PEG) is a forward looking ratio based on anticipated earnings growth.  PEG is created by dividing P/E by the projected rate of earnings growth.  Coca-Cola FEMSA, S.A.B. de C.V.’s  PEG is 1.94.

RETURNS AND RECOMMENDATION

Shareholders can expect a return on equity of 14.00%.  Calculated by dividing Coca-Cola FEMSA, S.A.B. de C.V.’s annual earnings by its total assets, investors will note a return on assets of 5.80%.  Finally, Coca-Cola FEMSA, S.A.B. de C.V.’s return on investment stands at 7.90% when you divide the shareholder’s return by the cost.  The consensus analysts recommendation at this point stands at 2.80 for Coca-Cola FEMSA, S.A.B. de C.V. (NYSE:KOF).  This is based on a 1-5 scale where 1 indicates a Strong Buy and 5 a Strong Sell.