Coca-Cola is a well-known blue chip US stock that can tend towards gains during recessions. As a consumer staple, the thinking goes that most western consumers can still afford a soft drink even though times are tighter. So how will Coca-Cola do this year?
From a seasonal perspective, the company has a great seasonal bias. The company has gained 20 times in the last 25 years between March 13 and June 4. The average return has been 6.16% and the maximum gain has been over 20%. Is this now the time to consider buying into Coca-Cola as this strong seasonal pattern approaches?
Major Trade Risks: The major trade risk here is that there is some negative news for Coca-Cola.
HYCM clients can access the Seasonax product in order to analyse over 25,000 currency pairs, indices, commodities, as well as individual stocks. Please contact your account manager for a free trial and get started right away. Certain products & services mentioned herein may or may not be available to all clients depending on which HYCM Capital Markets Group entity their trading account(s) adheres to.