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- 1 Experts argue that declaring aspartame as a carcinogen used in select Coca-Cola products might not hamper the KO stock value.
- 2 The World Health Organisation will declare the artificial sweetener Aspartame a “possible carcinogen for humans” in July 2023.
Shares of the Coca-Cola Company (KO Stock) might not be affected much, even when the WHO found a carcinogen, aspartame, in Diet Coke. The World Health Organisation classified the artificial sweetener in a few Coca-Cola products like Diet Coke, as a possible cancer-causing substance in July 2023. Such news can hamper the share price, but considering an extensive line of products, the word might affect the stock price a little.
#Healthcare: Aspartame- one of the world's most common artificial sweeteners to be declared a possible carcinogen this July by @WHO.
— Abiaz Rwamwiri (@AbiazRwamwiri) July 2, 2023
Aspartame is used in products from Coca-Cola diet sodas to Mars' Extra chewing gum and some Snapple drinks, is being regarded as "possibly… pic.twitter.com/97KctBqP34
The Coca-Cola Company (KO Stock) – Financial Health Analysis
One of the world’s most common artificial sweeteners is widely used in Coca-Cola diet sodas, MArs’ Extra chewing gum, along with some Snapple drinks. These drinks would be deemed “possibly carcinogenic to humans” by the International Agency for Research on Cancer (IARC) and WHO’s cancer research arm.
PepsiCo Inc. (NASDAQ: PEP) might get an edge here, as the company deviated away from aspartame long ago. They switched to a blend of sucrose and acesulfame potassium to avoid trouble. But as Coca-Cola’s low-calorie products only accounted for a third of its sale in 2022, analysts argue that switching to a natural sweetener would be easier. Also, they predict that the news might have a limited effect on its share price.
Legendary investor Warren Buffet started buying KO shares in the 1980s and continued to do so for a period of seven years. Berkshire Hathaway now owns around 400 million shares of the company. In 1994, they offered a dividend of $75 Million, which increased to $704 Million in 2022—one of the reasons Buffet held on to the Coca-Cola stocks.
At press time, KO stock is trading at $60.22 with a gain of 0.33%. Previous close and open were at $60.02 and $60.00, respectively. The trailing twelve-month (ttm) price-to-earnings (P/E) ratio comes at 26.30, meaning the stock is fairly valued. Also, the earnings per share in a similar time frame is $2.29.
Analysts placed a 2.75 rating for moderate buy, an estimated price target at $67.67 with a 12.4% upside. The 52-week change in the price action saw a drop of 483.57%. In the last seven days, the NYSE: Ko share price dropped 2.78% and 2.96% in the previous three months. However, it rallied 0.50% in a month.
The last earnings were reported on April 25, 2023, where the reported revenue of $10.959 Billion managed to surpass the estimated value of $10.797 Billion by 1.50%. This comes with a difference and surprise of $161.522 Million. The revenue (ttm) is said to be $43.49 Billion.
Operating expenses jumped by 9.63% to $3.18 Billion, while operating margin swelled by 28.13%. Net income increased by 11.72% to $3.11 Billion, the net profit margin gained 6.75% to 28.30, while the profit margin jumped by 22.69%. Gross profit (ttm) is reported at $25 Billion.
The Coca-Cola Company (KO Stock) – Candle Exploration
The KO share price consolidated in a narrow region from February to March 2023; a solid breakout occurred in late March, taking the price action to R2. Also, a sideways moving EMA and the RSI value of 40.08 indicates the price action is moving in neutral territory.
If the KO share price action crosses R1, it will consolidate in ascending order a bit before breaking R2. As $64.99 acts as a crucial resistance, the sustained breakout would mean the price could make new high points. However, if the price breaks the demand zone, the price could come close to the yester-year low.
Disclaimer:
The views and opinions stated by the author, or any people named in this article, are for informational purposes only and do not establish financial, investment, or other advice. Investing in or trading crypto assets and stocks comes with a risk of financial loss.
Nancy J. Allen is a crypto enthusiast, with a major in macroeconomics and minor in business statistics. She believes that cryptocurrencies inspire people to be their own banks, and step aside from traditional monetary exchange systems. She is also intrigued by blockchain technology and its functioning. She frequently researches, and posts content on the top altcoins, their theoretical working principles and technical price predictions.
