Stockchase Opinions

Srikanth Iyer Coca-Cola Company KO-N BUY Jul 09, 2012

Doing extremely well right now because there is a general tendency to go “risk off” in market right now. Good, consumer staples, defensive stock. Has a very sustainable yield business model. Payout is about 25%-30% of their earnings but growth projections are not as good as one would expect. If you can get the current dividend yield capture, and ride the volatility in the market for the next 3-6 months, you have a very good security.
$77.980

Stock price when the opinion was issued

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Trevor Rose’s Insights - Trevor’s most-liked answers from 5i Research

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.
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Curated by Allan Tong since 2019.
99+ opinions with 4.15 rating.

TOP PICK

This trend accounted for KO's price drop to $52.89 in early October, but it's noteworthy that shares recovered quickly even as the wider S&P continued to slide. Entering December, KO shares have climbed $6 from that low, sandwiched between their 50- and 200-day moving averages. Further, its PE of 23.38x trades below its five-year average of 28.24x at a stable 0.59 beta, while the company has beaten its last three quarters.

PARTIAL SELL

A long-term hold. If you get a profit on this, take some off the table. He likes it.

DON'T BUY

Problem he has is that the growth isn't there. His goal is to buy companies that do better than the S&P 500 over the long term, and KO doesn't fit the bill. Great business, especially in EMs, now asset light. 

COMMENT

They report next week. He expects them to deliver on recent cost cuts.

TOP PICK

Demand is resilient despite industry challenges. They introduced new packaging, the 12-oz slim cans. Is trading below its 50-day moving averages, and nearing its 200. A great entry point. It scores 8/10 fundamentally. She see 15% upside. 

(Analysts’ price target is $74.32)
PARTIAL BUY

Buy 25% now, buy another 25% at $60, another tranche at $58, then at $55.

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The Coca-Cola Co is the nonalcoholic beverage company, which engages in the manufacture, market, and sale of non-alcoholic beverages which include sparkling soft drinks, water, enhanced water and sports drinks, juice, dairy and plant-based beverages, tea and coffee and energy drinks. Its brands include Coca-Cola, Diet Coke, Coca-Cola Zero, Fanta, Sprite, Minute Maid, Georgia, Powerade, Del Valle, Schweppes, Aquarius, Minute Maid Pulpy, Dasani, Simply, Glaceau Vitaminwater, Bonaqua, Gold Peak, Fuze Tea, Glaceau Smartwater, and Ice Dew. It operates through the following segments: Europe, Middle East and Africa, Latin America, North America, Asia Pacific, Bottling Investments and Global Ventures. The company was founded by Asa Griggs Candler in 1886 and is headquartered in Atlanta, GA. Social media mentions are up 700% in the past 24h.