10 Sep Financial Research Report Overview Imagine that you are a financial manager researching investments for your client.

Financial Research Report

Overview

Imagine that you are a financial manager researching investments for your client. Think of a friend or a family member as a client. Define their characteristics and goals such as an employee or employer, relatively young (less than 40 years) or close to retirement, having some savings/property, a risk taker or risk averter, etc. Next, use Nexis Uni at the Strayer University library, located at Nexis Uni, click on “Company Dossier” to research the stock of any U.S. publicly traded company that you may consider as an investment opportunity for your client. Your investment should align with your client’s investment goals. Note: Please ensure that you are able to find enough information about this company in order to complete this assignment. You will create an appendix, in which you will insert related information.

Instructions

This final financial research report will be 6–8 pages long, including an edited version of the first part of your assignment submitted in Week 7. This assignment requires you to use at least five quality academic resources and cover the following topics:

• Rationale for choosing the company in which to invest.
• Ratio analysis.
• Stock price analysis.
• Recommendations.

Refer to the following resources to assist with completing your assignment:

Stock Selection

• Forbes: Six Rules to Follow When Picking Stocks.
• CNN Money: Stocks: Investing in Stocks.
• The Motley Fool: 13 Steps to Investing Foolishly.
• Seeking Alpha: The Graham And Dodd Method for Valuing Stocks.
• Investopedia: Guide to Stock-Picking Strategies.
• Seeking Alpha: Get Your Smart Beta Here! Dividend Growth Stocks as ‘Strategic Beta’ Investments.

Market and Company Information

• U.S. Securities and Exchange Commission: Market Structure.
• Yahoo! Finance.
• Mergent Online (Note: This resource is also available through the Strayer Learning Resource Center.)
• Seeking Alpha (Note: This is also available through the Android or iTunes App store.)
• Morningstar (Note: You can create a no-cost Basic Access account.)
• Research Hub, located in the left menu of your course in Blackboard.

This assignment will be 6–8 pages including points 1 and 2 from Part 1 completed in Week 7.

1. Include your rationale, primary reasons for stock selection, and client’s profile from Part 1, making any revisions based upon Part 1 feedback if applicable.
2. Select any five financial ratios that you have learned about in the text. Analyze the past 3 years of the selected financial ratios for the company; you may obtain this information from the company’s financial statements. Determine the company’s financial health. (Note: Suggested ratios include, but are not limited to, current ratio, quick ratio, earnings per share, and price earnings ratio.)
3. Based on your financial review, determine the risk level of the stock from your investor’s point of view. Indicate key strategies that you may use in order to minimize these perceived risks.
4. Provide your recommendations of this stock as an investment opportunity. Support your rationale with resources, such as peer-reviewed articles, material from the Strayer University Library, and reviews by market analysts.
5. Conduct a literature review and list at least five quality academic resources. Note: Wikipedia and other similar websites do not qualify as academic resources.

This course requires the use of Strayer Writing Standards. For assistance and information, please refer to the Strayer Writing Standards link in the left-hand menu of your course. Check with your professor for any additional instructions.

The specific course learning outcome associated with this assignment is as follows:

• Create investment recommendations based on research that includes the rationale and risk mitigation for the chosen strategies.

Financial Research Report

In this report, the main objective is to research an investment for my client who is less than 40 years of age. In this case, according to the analysis of the client details, he is great risk tolerance and also has a high-risk capacity which some of the goals being to achieve a lifetime milestone like buying a house in the future. Considering the client characteristic, one of the companies I would consider is the Coca-Cola company due to its global status and iconic name making it a solid company with defensive stock. This report will major on the rationale for picking coca-cola as the preferred company for the investment, ration analysis, analysis of the stock price, and also gives a recommendation. 

Coca-Cola Company is an international brand that deals with beverages such as sports drinks, soft drinks, fruit juices among others. Being one of the most recognizedbrands in the world is established in more than 200 countries and this makes it a stable company that may offer many benefits if one decides to invest in it. Some of the reasons to decide to invest with the company include its adaptability, determined in getting bigger, established with the fair and just employer, doing better than its competitors, and last it is Buffett’s favorite(Kharkia, 2014).  Considering the company has been a century old, it has maintained its market leadership through its adaptability strategy which indicates that the organization is not going anywhere shortly as it has been able to form a network of loyal customers. For instance, after healthy concerns that were associated with fast foods and drinks, the company was able to come up with radical changes to ensure the consumer needs are met and the same time ensuring their health is preserved. This included strategy such as diet version for Coca Cola favorite classic which has super passed most of the competitors of the organizations. The company also has the scope of getting bigger and continues to establish its brand products ranging at round 500 to countries exceeding 200 thus making it ideal for investment. Also, coca-cola is a fair and just employer helping create a team of well-performing employees. With such a company, growth is usually experienced as employees will be innovative making the company a lead market in its field of beverages. The organization also controls a large market share than its competitors making it deal for continued revenue generation. Lastly it Buffett’s favorite one of the lead investors in the world with much knowledge of the business world trends and what is likely to bring profit in the future. Considering all these qualities associated with coca-cola, deciding to invest in the company would be the best choice.

Ratio Analysis

This can be defined as the process of quantitatively analyzing an organization to gain an insight into its liquidity, profitability, and operational efficiency by standing its financial states. In this case, my data will be based on the year 2016 to the year 2019 for the ration analysis. The data below has been retrieved from Macrotrends LLC. (2020).

Annual Data

2019-12-31

2018-12-31

2017-12-31

2016-12-31

Current Ratio

0.7567

0.8662

1.3439