Coca-Cola Company (KO)

The quintessential defensive stock, up 2.77% today and 19.5% this year. Just made a 52-week high. If the S&P is down tomorrow, you can buy this. The past and present CEOs are doing a great job.

The only consumer staples he owns are COST and KO. Growth is explosive on 0 calorie drinks. Still growing, capital light, smart operators.

Seems to be consolidating at this point. Good news is that underlying trend has basically been positive, seeing nice higher lows. But we're also seeing resistance around $72.50 where it just doesn't want to get through. Nice ascending triangle forming, but hard to say which way it's going to break from here. 

Still upside of about 15%. Unmatched global reach. Business continues to grow steadily, strong demand in key markets across the globe. Big pricing power is a huge advantage. Fundamentals: 9/10.

Is the gold standard of beverages with a reach into 200 countries. Revenue grew 5% last quarter and volumes are improving again. They have pricing power. Margins are resilient. EPS should grow 7-9% in 2025. Trades at 22x forward PE is stable, paying a 3% dividend. Sees 195 upside.

Focused, has the branding. 24x forward PE for 5-6% earnings growth. Not on his radar for what he's looking for in terms of growth. Technically OK, with price above 200-day MA and that MA turning slowly higher. Yield is 2.8%.

Operates in a cola duopoly with PEP. He likes market leaders like these that have little to no direct competition. That being said, it's a lot harder these days with consumer brands to establish a brand and build a moat. Today he could launch a cola company online, using Instagram and FB, with very little cost and effort, and with luck it could even go viral. Brands will have a tough time. 

Very strong, well-established brand. He owns FEVR, take a look at that one.

They report Tuesday. It's the only stock in consumer products that he follows and is hanging in there compared to its peers.

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%.

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

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. 

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

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.