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3 Companies To Watch This Year


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The stock market has its ups and downs, especially in this new financial quarter which has investors interested in which companies can outshine last quarter. The great recession is finally starting to wave off. The American people are even spending more this quarter and companies that finished strong last year are looking to mirror those profits this year. Continue reading to learn more about 3 companies to watch this year as they are currently standing strong and apart from the others on the trading floor.

Coca Cola3 companies to watch this year 2

Coca Cola has stated early Thursday that due to better profits this quarter, the company was able to raise its quarterly dividend payout to investors by 9 percent. Coke’s board of directors rose the quarterly dividend from 28 cents per share to 30.5 cents per share. Just in 2013, Coke was able to pay out to investors nearly $9.8 billion dollars with roughly $5 billion dollars in dividend payout alone. Just in the last 3 years, Coke has returned to its investors a total of $34 billion dollars. The world’s largest beverage maker is confident in its long term place as a supplier by upping the dividend payout to investors. Concerns with this company are not misplaced. Over the last 20 years both Coke and its main competitor Pepsi have noticed a significant change in buying patterns within the beverage market. Soda sales which is the base product for both companies have been in a steady decline as people have opted for healthier beverages. However, Coke has learned from the trending products in the beverage market and over the last 15 years has bought up new lines outside of the soda sales.

The Coca Cola red and white label is one of the most well known brands globally! But like any savvy investor, Coke has diversified its ability to turn a profit. In the last decade alone the company has invested in various types of coconut waters, teas, and energy drinks. Coke has also invested in the distribution of other brands, clinging to distribution as another tactic for brand loyalty. Last quarter Coke saw an 8 percent drop in profits, and a 10 percent drop in stock price just for this year alone. The company has invested millions in restructuring and updating the infrastructure and distribution centers around the world. Coca Cola is more than an American icon, it is a well organized company that has invested in its long term future.

3 companies to watch this year 1

Tesla

The American car manufacturer based in California, has been revolutionizing the auto industry. They have given the other American car companies a run for their money and have taken on the premium car companies (BMW, Mercedes-Benz, Audi) in luxury and performance. Tesla has attributed its success to the high cost of gasoline and the desire by consumers to drive an Eco friendly yet comfortable vehicle. The company this time about a year ago was selling stocks at about $33 to $34 dollars per share. Yesterday Tesla saw a boost in the price per share, which has risen $16.50 dollars per share leveling off at about $210 dollars per share. Earlier in the week, Tesla stock rose to $215.21 per share, record breaking for the company on the trading floor.

Tesla has been investing over the last year in its production capabilities. Looking to meet the rising demand not only here in the U.S. but also in the European and Asian markets that are calling for the car. Tesla currently only produces one car, with different trims, their S model just at base cost, costs a little more than $57,000 dollars. The company is projecting to sell a total of 35,000 S models this year alone by producing 1,000 cars a week instead of its current rate of 600 cars a week. The company has also invested in a small SUV type to roll out next year with a broader market to appeal to, with a lower sticker price.

3 companies to watch this year Hewlett-Packard

Hewlett-Packard has reported the results that its first quarter profits through January 31st have beaten market expectations. A rise in profit topped 16 percent more than was anticipated, totaling out to about $1.43 billion dollars more than was projected. While revenue overall has slightly dipped, the company is seeing a rise in adjusted earnings not only for this quarter which came in to about $28.15 billion dollars so far, but for next quarter as well.

All 3 of this companies are worthwhile to watch this year as their profits are up higher than the market had projected for any of them. Tesla has been revolutionizing the car industry, while Coke has been buying up the competition and investing in newer products to appeal to the buying trends. Hewlett-Packard has remained as one of the leaders in the industry by constantly producing a product that keep customers coming back. All 3 are projected to do very well financially over the next year.

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