During lockdown, at-home consumption benefited, but away-from-home dropped. This should recover with reopening. Overhang is a tax dispute with the IRS. If the case goes against them, it will be a significant one-time hit as well as higher tax rate going forward. She owns MDLZ instead.
This stalled a while ago. It trades at 26x earnings which is high. In the 1990s, this had a magical aura, when he owned it, but in those days Coke was growing. The pandemic has been very tough on Coke. Also, people are not drinking carbonated soft drinks as much.
Stockchase Research Editor: Michael O'Reilly It was a toss up between making KO or PEP a TOP PICK. Frankly, they have similar valuations and dividends. However, we decided on KO based on a slight advantage on a pending technical breakout. Trading at 27x earnings, compared to a sector average of 42x, KO is good value. The company provides a strong dividend, which has grown for the past 59 consecutive years. It has modest upside, but we like the stability. We would buy this with a stop-loss at $45, looking to achieve $58 -- upside potential of 12%. Yield 3.29% (Analysts’ price target is $57.59)
A great company that pays a 3.5% dividend. It's down because restaurants are shut down, so once they reopen business will roar back. Reports Wednesday. Coke is too cheap to ignore. It's a recovery play.
Consumer staples have lagged. Global, iconic brand. Expanded into coffee market to diversify and expand growth prospects. Disproportionately exposed to soda category, which is facing headwinds. Own it for income, but not growth. Yield is 3.3%.
CO-N vs. PEP-Q. They are both consumer stables and he likes them because they are falling off maybe 20% from their high. He is more a Coke guy and it is close to EBV+7 at $39 and closed at $42.81. Close to $38-9 he would be a buyer, maybe even at this price. You can do one or the other and still be okay.
A safer bet is the perennial defensive name, Coca-Cola, Warren Buffett's favourite drink (stock). Since Feb. 19, Coke had declined by roughly 1.2%, while the Nasdaq has sunk 10%. It has met or beat the street in its last four reports. And it pays you a 2.93% dividend based on a 77% payout ratio. Is this a screaming buy? No. The PE has climbed from 22x to over 27x in the past year. However, the world won't stop drinking Coke tomorrow. Maybe boring, but safe.
It is considered consumer defensive. We will probably see it bounce a tiny bit and then if it resumed going up it would bump off $50. You want to be selective in owning these. He has lightened up.
It is leveraged to global consumer spending. They continue to boost margins and cut spending. The multiple is very rich as you are paying 20 times for 8 percent growth in earnings. (Analysts’ price target is $57.00)
More defensive play. Dividend Yield of 3.44%. P/E of 22x. $32 billion in revenues. They recently bought a coffee company with a lot of growth. (Analysts’ price target is $49.90)
A consumer staple name that is doing the right thing by downplaying their bread and butter business. They are getting more into sports drinks to diversify. It should trade at a premium. You should buy when it trades down. He has PEP-T right now.
Coke differs from the broader staples sector. It’s strong between March and June, so look for it in the second quarter. Seeing a rollover, and a short-term double top. Suggests more downside weakness. Heading for breaking support at $44 and $41. Stay away.
It's built a nice base. It's so boring, yes, but whenever it reaches these levels in the low-40s, it bounces up. Limited downside, but likely upside. (Analysts' price target: $49.80)
Coca-Cola Company is a American stock, trading under the symbol KO (previously KO-N on Stockchase) on the New York Stock Exchange (KO). It is usually referred to as NYSE:KO or KO
During lockdown, at-home consumption benefited, but away-from-home dropped. This should recover with reopening. Overhang is a tax dispute with the IRS. If the case goes against them, it will be a significant one-time hit as well as higher tax rate going forward. She owns MDLZ instead.