Coca-Cola (NYSE: KO) is a global non-alcoholic beverage industry leader. It makes a wide range of beverages in various markets globally.
Analysts consider KO one of the best examples of a blue-chip stock. It is over 100 years old, founded in 1892. Today, it is one of the world’s most recognizable brands.
Recent Stock Performance
At the close of the last trading session on October 12, KO stock was valued at $53.71. On the same day, the value of the S&P 500 was up 0.43%, the DJIA was up 0.19%, and the NASDAQ was up 0.71%. Over the past month, the shares of Coca-Cola have dropped 7.32%, which is worse than the overall Consumer Staples sector drop of 3.69%. In the same period, the S&P 500 has dropped 2.1%.
As of 09:56 AM EDT, the price of KO is $53.35, a 1.02% increase since trading opened. However, it is still lower than the previous day’s close. Thus far, it is doing better than the S&P 500, which is up 0.61% thus far, the Dow 30, up 0.83%, and Nasdaq, up 0.26%.
Earnings Reports
According to fiscal Q2, 2023 report, for the quarter that ended June 30, Coca-Cola had an EPS of $0.78, which was higher than the expected $0.72, a surprise of 8.14%. Revenue also came in stronger than expected at $11.97B, against the expected $11.75B, a surprise of 1.83%. The earnings reports also revealed that Currency Neutral Operating Income (Non-GAAP) grew 15%, while Organic Revenues (Non-GAAP) Grew 11% compared to the previous year.
The company’s upcoming earnings report is dropping on October 24, 2023. Analysts predict an EPS of $0.69, which indicates stability compared to last year’s quarter. They also predict revenue of $11.46 billion in the upcoming quarter, an increase of 3.62% from last year’s quarter.
Coca Cola Strengths
Coca-Cola’s biggest competitor is PepsiCo, which brings in almost double the revenue of Coca-Cola. However, their profits are often similar. The reason for this is Coca-Cola’s focus on margins. For instance, in its latest earnings report, the company’s operating margin was 20.1%. On average, the company can maintain an annual operating margin of around 27%. For PepsiCo, the operating margin is, on average, around 11.10%.
Another strength is the dividend. Over the past 61 years, the company has increased dividends consistently. That is the longest streak of any US company.
KO Stock Forecast
Analysts give KO stock a $75 price target on the high end and a low of $59. The average price target is $67.50, an upside of around 28% based on the current price of $53.35.
Coca-Cola Stock has a Solid Buy Rating
Coca-Cola is one of the most successful brands in the world. Over the decades, it has navigated numerous economic conditions to emerge stronger and better. Due to its resilience, investors give it a strong buy rating. It has solid financials, a great competitive edge, and it is unlikely to face any serious challenge to its position soon. While investing in the stock market often requires a lot of consideration, KO stock is one of the easiest options for new investors.
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