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Coca Cola Enterprises Is An Avoid For Value Investors

This article helps long-term investors in Coca-Cola Enterprises (NYSE:CCE) determine whether or not there is value in the stock at this level. This is an earnings-driven evaluation that focuses not only on recent earnings trends but on earnings expectations for the entire year of 2015 and 2016 respectively (future growth). Our objective is to determine if Coca-Cola Enterprises has immediate value given its forward looking growth rates and that, in turn, will help long-term investors determine whether or not they should be investing inCoca-Cola Enterprises accordingly.

To begin, we look at forward looking yearly growth rates for Coca-Cola Enterprises. Recent growth trends notwithstanding, if analysts are correct about their expectations for earnings growth for this year Coca-Cola Enterprises will grow earnings by 21.56% (first red dot in the graph). That is a healthy growth rate by almost every account, but the following year that changes and if analysts are correct about the growth rate that the company will realize as 2016 comes to an end the yearly growth rate for Coca-Cola Enterprises will drop to 2.07% (second red dot in the graph). According to analyst estimates, this year may be a decent year for Coca-Cola Enterprises, but all that will change in 2016. Read more