Related posts
Nervous markets await NvidiaThis summary was created by AI, based on 6 opinions in the last 12 months.
The Coca-Cola Company, founded in 1886 and headquartered in Atlanta, GA, is a leading non-alcoholic beverage manufacturer with a diverse portfolio that includes sparkling soft drinks, juices, and enhanced waters. Recent social media activity surrounding the brand has surged, indicating heightened consumer interest. Analysts highlight that despite industry challenges, demand remains robust, and the introduction of innovative packaging could enhance growth potential. The stock is currently trading below key moving averages, presenting a potentially attractive entry point, especially as the company prepares to report its earnings next week. However, there are concerns about its long-term growth prospects compared to market benchmarks like the S&P 500.
We feel that the consumer staples space is trading at attractive valuations, and for the time being, much of the reason for the decline (ozempic fears), is likely overblown. KO pays a dividend of 3.3% which is slightly above its 20-year average of 3%. Relative to its 20-year historical average valuations, its forward P/E is in line with historical averages, while its EV/EBITDA and forward price to sales are both slightly above historical averages. For an investor with a long-term time horizon, we would be quite comfortable with KO today.
Unlock Premium - Try 5i Free
KO is now trading at 19.4x times' Forward P/E. KO is a mature consumer staples company and KO used to be a “bond proxy” for income investors due to the stability of its business, the capital-light nature of beverages and its high dividend yield. KO’s share price was quite resilient last year. However, due to the new expectation that rates may stay higher for longer, most consumer staples names have experienced pressure in recently, as bonds become a safer alternative for yield. KO is largely mature, revenue growth going forward is expected to be around 5%. Having said that, valuation is at a more attractive level now, currently trading at 19.4x Forward P/E, while historical averages in the last few years range from 19.3x to 26.1x. It is not a huge buy yet, but we would be OK to slowly start buying, for those with a decent time frame.
Unlock Premium - Try 5i Free
Coca-Cola Company is a American stock, trading under the symbol KO-N on the New York Stock Exchange (KO). It is usually referred to as NYSE:KO or KO-N
In the last year, 3 stock analysts published opinions about KO-N. 1 analyst recommended to BUY the stock. 1 analyst recommended to SELL the stock. The latest stock analyst recommendation is . Read the latest stock experts' ratings for Coca-Cola Company.
Coca-Cola Company was recommended as a Top Pick by on . Read the latest stock experts ratings for Coca-Cola Company.
Earnings reports or recent company news can cause the stock price to drop. Read stock experts’ recommendations for help on deciding if you should buy, sell or hold the stock.
3 stock analysts on Stockchase covered Coca-Cola Company In the last year. It is a trending stock that is worth watching.
On 2025-04-04, Coca-Cola Company (KO-N) stock closed at a price of $69.93.
Brand strength, pricing power, geographic diversification. Big potential expansion in coffee. Really gets local culture. Chart shows a bit of resistance at this level, and we want to see it get through that. Whole chart is decent. Down less than the market these last few days. Beverage sector is pretty defensive and predictable. Metrics look pretty good. Yield is 2.82%.
(Analysts’ price target is $75.38)