Coconut Water Sales Gains Lift Vita Coco Shares

COCO is a coconut water company, offering coconut water, sparkling water, coconut milk, and oil products. It operates two primary segments: Americas (U.S. and Canada) and International (Europe, Asia, and the Middle East). The company’s brands include Vita Coco, Runa, and Ever & Ever. COCO has enjoyed healthy growth in the International segment and has also produced offshoots of its products, including alcoholic varieties.

Due to report its fiscal 2024 fourth quarter results next week, COCO’s last report showed strong overseas sales gains, particularly in the U.K. and Germany, where sales have grown over 50% over the last year. The Vita Coco brand alone grew 8% in the U.S. and 19% in the U.K. Vita Coco Juice gained 39%, and the introduction of a Vita Coco coconut one-liter pack was well received by a key convenience store chain. Guidance also pointed upward for the fourth quarter, with growth driven by inventory recovery and improved retail product availability.

It’s no wonder COCO shares are up nearly 80% in a year – and they could rise more. MAPsignals data shows how Big Money investors are betting heavily on the forward picture of the stock.

Big Money Drinks Up Vita Coco

Institutional volumes reveal plenty. Recently, COCO has enjoyed strong investor demand, which we believe to be institutional support.

Each green bar signals unusually large volumes in COCO shares. They reflect our proprietary inflow signal, pushing the stock higher:

Plenty of staples names are under accumulation right now. But there’s a powerful fundamental story happening with Vita Coco.

Vita Coco Fundamental Analysis

Institutional support and a healthy fundamental backdrop make this company worth investigating. As you can see, COCO has had strong sales and earnings growth:

• 3-year sales growth rate (+16.8%)
• 3-year earnings growth rate (+129.5%)

Source: FactSet

Plus, EPS is estimated to ramp higher this year by +14.9%.

Now it makes sense why the stock has been powering to new heights. COCO has a track record of strong financial performance.

Marrying great fundamentals with our proprietary software has found some big winning stocks over the long term.

Vita Coco has been a top-rated stock at MAPsignals. That means the stock has unusual buy pressure and growing fundamentals. We have a ranking process that showcases stocks like this on a weekly basis.

It’s made the rare Top 20 report multiple times in the last year. The blue bars below show when COCO was a top pick…springing up with time:

Tracking unusual volumes reveals the power of money flows.

This is a trait that most outlier stocks exhibit…the best of the best. Big Money demand drives stocks upward.

Vita Coco Price Prediction

The COCO rally isn’t new at all. Big Money buying in the shares is signaling to take notice. Given the historical gains in share price and strong fundamentals, this stock could be worth a spot in a diversified portfolio.

Disclosure: the author holds no position in COCO at the time of publication.

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