The Coca-Cola Company (KO)
The Coca-Cola Company (KO) is a leading global beverage enterprise headquartered in Atlanta, Georgia, specializing in the manufacturing, marketing, and retailing of nonalcoholic beverage concentrates and syrups. With a diverse portfolio of over 500 brands, including its flagship Coca-Cola soft drink, the company commands a significant presence in more than 200 countries. Coca-Cola’s robust distribution network and ongoing innovation in product offerings position it well for sustainable growth amidst evolving consumer preferences, making it an attractive option for institutional investors seeking stability and market leadership in the beverage industry.
Stock Price Trends
Stock price trends estimated using linear regression.
Key facts
- The primary trend is increasing.
- The growth rate of the primary trend is 28.14% per annum.
- KO price at the close of February 2, 2026 was $75.33 and was lower than the bottom border of the primary price channel by $11.93 (13.68%). This indicates a possible reversal in the primary trend direction.
- The secondary trend is increasing.
- The growth rate of the secondary trend is 13.52% per annum.
- KO price at the close of February 2, 2026 was inside the secondary price channel.
Linear Regression Model
Model equation:
Yi = α + β × Xi + εi
Top border of price channel:
Exp(Yi) = Exp(a + b × Xi + 2 × s)
Bottom border of price channel:
Exp(Yi) = Exp(a + b × Xi – 2 × s)
where:
i - observation number
Yi - natural logarithm of KO price
Xi - time index, 1 day interval
σ - standard deviation of εi
a - estimator of α
b - estimator of β
s - estimator of σ
Exp() - calculates the exponent of e
Primary Trend
Start date: August 31, 2023
End date: October 23, 2024
a = 3.2901
b = 0.0007
s = 0.0304
Annual growth rate:
Exp(365 × b) – 1
= Exp(365 × 0.0007) – 1
= 28.14%
Price channel spread:
Exp(4 × s) – 1
= Exp(4 × 0.0304) – 1
= 12.93%
August 31, 2023 calculations
Top border of price channel:
Exp(Y648)
= Exp(a + b × X648 + 2 × s)
= Exp(a + b × 939 + 2 × s)
= Exp(3.2901 + 0.0007 × 939 + 2 × 0.0304)
= Exp(3.9887)
= $53.98
Bottom border of price channel:
Exp(Y648)
= Exp(a + b × X648 – 2 × s)
= Exp(a + b × 939 – 2 × s)
= Exp(3.2901 + 0.0007 × 939 – 2 × 0.0304)
= Exp(3.8671)
= $47.80
October 23, 2024 calculations
Top border of price channel:
Exp(Y936)
= Exp(a + b × X936 + 2 × s)
= Exp(a + b × 1,358 + 2 × s)
= Exp(3.2901 + 0.0007 × 1,358 + 2 × 0.0304)
= Exp(4.2733)
= $71.76
Bottom border of price channel:
Exp(Y936)
= Exp(a + b × X936 – 2 × s)
= Exp(a + b × 1,358 – 2 × s)
= Exp(3.2901 + 0.0007 × 1,358 – 2 × 0.0304)
= Exp(4.1517)
= $63.54
Description
- The primary trend is increasing.
- The growth rate of the primary trend is 28.14% per annum.
- KO price at the close of February 2, 2026 was $75.33 and was lower than the bottom border of the primary price channel by $11.93 (13.68%). This indicates a possible reversal in the primary trend direction.
Secondary Trend
Start date: August 31, 2023
End date: February 2, 2026
a = 3.6624
b = 0.0003
s = 0.0464
Annual growth rate:
Exp(365 × b) – 1
= Exp(365 × 0.0003) – 1
= 13.52%
Price channel spread:
Exp(4 × s) – 1
= Exp(4 × 0.0464) – 1
= 20.38%
August 31, 2023 calculations
Top border of price channel:
Exp(Y648)
= Exp(a + b × X648 + 2 × s)
= Exp(a + b × 939 + 2 × s)
= Exp(3.6624 + 0.0003 × 939 + 2 × 0.0464)
= Exp(4.0815)
= $59.23
Bottom border of price channel:
Exp(Y648)
= Exp(a + b × X648 – 2 × s)
= Exp(a + b × 939 – 2 × s)
= Exp(3.6624 + 0.0003 × 939 – 2 × 0.0464)
= Exp(3.8960)
= $49.21
February 2, 2026 calculations
Top border of price channel:
Exp(Y1,254)
= Exp(a + b × X1,254 + 2 × s)
= Exp(a + b × 1,825 + 2 × s)
= Exp(3.6624 + 0.0003 × 1,825 + 2 × 0.0464)
= Exp(4.3893)
= $80.59
Bottom border of price channel:
Exp(Y1,254)
= Exp(a + b × X1,254 – 2 × s)
= Exp(a + b × 1,825 – 2 × s)
= Exp(3.6624 + 0.0003 × 1,825 – 2 × 0.0464)
= Exp(4.2039)
= $66.95
Description
- The secondary trend is increasing.
- The growth rate of the secondary trend is 13.52% per annum.
- KO price at the close of February 2, 2026 was inside the secondary price channel.