The Coca-Cola Company (NYSE:KO) is among a few consumer defensive stocks that will weather the bear pressures. The company is trading at a valuation of $62.86. An overview of the price trend shows that the stock will continue appreciating to find resistance at $68.
The Coca-Cola Company is a recognized value stock. The dividend yield currently stands at 2.80%. Though not the highest in the market, it will be something that investors look forward to in the market. Coca-Cola gives investors peace of mind. The beta of 0.58 shows the stock will remain more stable than the market index.
Another important consideration for investors is the strong momentum. Momentum stocks will, in general, outperform the bear market. This is especially if those stocks are also fundamentally sound. Coca-Cola ticks all the boxes of a strong company. The strong momentum means that the stock will continue with the value appreciation despite the bears.
Coca Cola at a significant buy signal
Source – TradingView
Coca-Cola triggers a buy signal each time the RSI hits 50. This signal was triggered at the close of last week. The RSI is currently at 54.57 and trending upwards. Once it hits 70, the stock will trigger a sell signal. Throughout this pattern, the stock will remain within the linear regression channel. Investors can scrap significant returns by trading the pattern.
Summary
Coca-Cola is a buy at a valuation of $62. Strong momentum adds to the value stock’s ability to withstand the bear market. Coca-Cola is also a dividend stock with low risk, giving investors many reasons to buy in.
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