What are Tuesday’s likely movers and shakers? Here’s a breakdown of some of the potential candidates.
Stock 1: The Coca-Cola Company (KO)
Fizzy drinks giant Coca-Cola is set to report Q1 2014 earnings before the opening bell sounds in the US, offering day traders an opportunity to profit from the inevitable volatility a miss in expectations would serve up.
Consensus forecasts an EPS of $0.44, representing a 4.3% decline on the same period last year. Similarly, consensus forecasts revenues at $10.56B. The general trend of consumers away from carbonated beverages towards healthier alternatives has drawn investor concern that Coca-Cola must diversify or suffer a loss in market share. A recent strategic partnership with Keurig Green Mountain may go some way towards alleviating these concerns, but it is likely that Tuesday’s intraday volatility will depend solely upon the raw financial data. Look for a Q1 2014 revenues below $10.56B to weaken KO, with an initial downside target of Monday/weekly lows at 38.40. Conversely, look for Q1 2014 revenues above $10.56B to strengthen the stock, with an initial upside target of Friday highs at 39.15.
Stock 2: Zebra Technologies Corp. (ZBRA)
Zebra Technologies Corporation manufactures and sells printers and related products worldwide. A couple of hours before the US markets opened on Tuesday, the company announced it had entered into an agreement that will see it acquire Motorola’s Enterprise business for $3.45B in an all cash transaction. The Enterprise business in question is a mobile computing and data capture business. The stock is flat pre-trade, but buyers will likely flock to the market at the open. ZBRA gapped up out of the weekend, having lost strength throughout the latter half of the week, and a break above Monday highs at 68.38 would validate an initial upside target of 69.00 flat.
To contact the reporter of this story: Samuel Rae at Samuel@forexminute.com