Pepsi Co and Coca Cola Stock Analysis Essay Example | Topics and Well Written Essays - 1250 words

Pepsi Co and Coca Cola Stock Analysis - Essay ExampleThe report at the end presents the summary of what has been learnt in the report. canvas THE STOCK PERFORMANCE OF TWO FIRMS Historical prices of Pepsi co Adjusted final stage price has been taken for the calculation of returns and risk. The bonny stock returns are found to be negative (-0.08) (Yahoo Finance, 2013a) Historical Prices of Coca Cola caller-out STDEV 0.0101 The Adjusting closing has been taken for calculating returns and risk. The average returns are negative (-0.15) (Yahoo Finance, 2013b). Dow Jones Industrial Average NASDAQ Composite indicator The latest price at which the Pepsi co Philippines traded is 6.19, it is 10.03% below its high 52 week of 6.88. The listing of Pepsi co products are primarily on Philippines Stock shift (Financial Times, 2013). (Financial Times, 2013) Market closed at 40.81, which is 6.03% below its high 52 week of 43.43. The listing of Coca Cola Company products are primarily on NYQ. evo ke Rates For the last four years wages are being flat and there is no hint of an increase in inflation rate. In 1980s, women began to enter labor force, but still the work force participation is at its low rate. After the financial crisis the financial system has improved a lot, capitalization of the banks are managed in a better way, balance sheets are being improved by both the corporations and households and all these factors can positively daze not only the two companies but Dow Jones index as well as NASDAQ. Industry News Despite the continuation of Fed with the policy of buy bonds and accommodation, stocks were more than expected rallied on Monday. The Dow industrials were at a positive sign for the whole day despite the sharp rise in Intel and Merck. With a conquest of key drug trial, Merck was up 3.8% while with the introduction of new processors of fourth generation, Intel was up to 4 %. The Dow industrial average was increased by 138 points at the closing with 15,254 an d NASDAQ was up to 9 points with 3465. 545 million shares were traded by NASDAQ there was an increase in the volume on NYSE with 879 million shares being traded. Dow Jones industrials violated the moving average of 20 day. The support zone focused concentration on Monday with 15,115 from 15,000. The index of Dow Jones was on a lead till March. Therefore such factors can in addition impact companies like Coca Cola and Pepsi as they are also traded on similar stock exchange. Company News The Coca Cola Company has announced its investment in Myanmar on Tuesday 4th June. The production of the company will be in Myanmar with an investment of $200 million. This investment will raising its shares in the market and profits will be enormous. The coca cola company was given the investment permit for the foreign investment Law by Myanmar. It is the first production of Coca Cola in decades. The Dow Industrial Average secured an uneven recoery has led the 30 giants of America which includes Co ca Cola Company, Microsoft etc to the just about comprehensive event (Eavis, 2013) PepsiCo has started its joint venture with the Theo Muller Group, established a new art-state manufacturing of yogurt plant in Batavia, New York. Theres an oeuvre capacity of around 180 people. PepsiCo is the leader in food and beverages it has no less than $65 billion of net revenues. With twenty two brands in the portfolio PepsiCo enjoys over $1 billion to in each brand in a result of its annual sales. With the joint venture with the Theo Muller group Pepsi co enjoys magnification in stocks. PepsiCo due to increasing its price on Feb. 2013,