Beverage Companies Stock Charts Making Way To The Top
Beverage industry now has a bit of a crisis caused by the growing legalization of recreational use of marijuana. A lot of states now in the U.S. legalized the use of the said drug. The legal sale of the pot in the United States already grew 57.4% reaching about $8.5 billion of sales during the year 2017. The legal sale of this drug is expected to reach $20 billion in the year 2020.
The growth of sales on the said drug becomes the big challenge to the beverage industry as consumers slowly turning away to sugary drink options. That’s when these beverage companies decided to benefit the growing legalization by introducing cannabis-infused drinks.
Now investors who think that these marijuana-related beverages could lead the industry and should be included to the watchlist. Let’s look and analyze their stock chart now.
The Coca-Cola Company obviously is the largest non-alcoholic beverage company around the globe with revenue of $30 billion annually. Coca-Cola holds various brands such as Diet Coke, Fanta, Minute Maid, Powerade, and Dasani. Last September Coca-Cola company had talks with the cannabis producer company Aurora Cannabis Inc. (ACB) in making marijuana-infused drinks. On November 12 Coca-Cola stock had a year-to-date (YTD) profit of 10.83%, offering a 3.14% dividend production. Coca-cola founded during the year 1886 with a market capitalization of $211.46 billion.
Shares traded by Coca-Cola range at about $2.50 between the month of July and October before the upside during the third quarter earnings. Investors wishing to purchase stock must look at entries around $46.5 level. There’s the price finding support from the previous trading range with a fifty-day simple moving average (SMA).
Have their headquarter in New York with a market cap of $165.83 billion. They also manufacture and distribute non-alcoholic drinks and various grain snack foods. The company started in 1898, owning various well-known brands including Gatorade, Mountain Dew, Tropicana, Quaker, Lay’s, Doritos and Cheetos. During October, Hugh Johnston, Pepsi CEO, said that the company might look “critically” on the idea of investing in cannabis-related drinks. With a trade of about $117.48, the stock was up 0.18% of their YTD but has gained 8.66% as of November 12. Investors then profit 3.16% dividend of the production.
PepsiCo’s price share falls roughly 20% between the months of February and May. Their stock rallied sharply during mid-October with trading just below their current YTD high of $119.52. Traders now should consider purchasing stocks on a retracement to the $114 level, the price area that is likely to have support in the trendline and connects various swing highs.
Keurig Dr Pepper Inc. (KDP)
Keurig Dr Pepper started as the result of an $18.7 billion merger of Keurig Green and Dr Pepper Snapple in July 2018. They have a market cap of $39.62 billion. Keurig Dr Pepper conglomerate manufacture and market coffee, soft drinks, and juice products.
Even though Keurig brewers aren’t much in the talk in the streets, Dr Pepper is to explore cannabis-infused beverage. The company is in an ideal partnership with the mid-large sized cannabis producer. The company had a 2.1% production and had an impressive profit of about 20.11% in the previous months. They’ve outperformed other beverage industry who had gain close to 14% over the same previous months as of November 12.