Beverage Pair Trade Rises as Cost Cutting Refreshes Manufacturer
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Coca-Cola Co. shares are outperforming Coca-Cola Enterprises Inc. as investors bet earnings will accelerate more for the soft-drink maker than for its international bottler this year.
Coca-Cola, the world’s largest beverage company, has climbed almost 11 percent since Feb. 21, 2014, and Coca-Cola Enterprises has fallen 11 percent, as the stock-price ratio for these Atlanta-based companies is rising from the lowest level since 1989 -- see chart. This ratio has increased in five of the past six months, as Coca-Cola closed at $41.17 on Jan. 30 and Coca-Cola Enterprises was at $42.10.