You Are an Investment Analyst Essay

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You Are an Investment Analyst Abstract Through this paper Pepsi and Coca Cola will be fully evaluated. A stock market analysis will be presented to a client as part of a professional consultation process. A background of both Pepsi and Coca will be accompanied in order to have a full synopsis of each company. The stock trends will be examined for both investment options. The stock trends will be based from the intial public offering day to January 2, 2012. Current events surrounding both companies will be displayed in order to assist the analysis. Lastly, we will analyze the financial statements of both companies. After a complete review of both companies a recommendation will be made as the better investment opportunity for…show more content…
Pepsi gained 7.2% annually during the same time period. Based off historical trends Coca Cola and Pepsi are two stocks that are very close to one another in terms of historic performance. Over the past two decades a 10K investment in Coca Cola would be worth almost 2K more than an investment in Pepsi. Pepsi is projected to grow its EPS at a rate of 7% over the next three years and Coke is expecting to grow at 9% over the same period. News Events In December 2012 Mexican bottler Coca-Cola Femsa SAB finalized a deal to enter Asia, agreeing to buy 51% of Coca-Cola Companies production and distribution operations in the Philippines for $688.5 million. According to the Wall Street Journal “The acquisition of Coca-Cola Bottlers Philippines Inc. marks Coca-Cola Femsa's first move beyond Latin America, where it is the largest Coca-Cola bottler and a frequent investment partner with Atlanta-based Coca-Cola Co. in a variety of projects.” (Guthrie & Harrup, 2012). The distribution and warehouses of Coca Cola are growing immensely globally. Due to the ongoing economic slowdown of certain countries Coca Cola may have a short term effect on their business. Coca Cola Companies third-quarter earnings rose 3/9%. Though future quarters again, may prove to slow down. Chairman and Chief executive Muhtar Kent said on Tuesday that China’s economy is in the midst of a natural transition where the government is more focused on controlling

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