That’s the cheapest shares have traded on a forward-year basis since 2013. Don’t overlook the company’s opportunity domestically and abroad, either. It’s the clear No. 2 payment processor in the U.S. (the world’s top market for consumption), and has a multidecade growth runway given how underbanked most emerging markets are.
- This, in turn, can lead to a decrease in the present value of the company’s future cash flows, which can put downward pressure on its stock price.
- For a company like Coca-Cola, which relies on consumer spending and has debt on its balance sheet, higher interest rates can increase its cost of capital.
- The consensus among Wall Street analysts is that investors should “moderate buy” KO shares.
- Data are provided ‘as is’ for informational purposes only and are not intended for trading purposes.
Our research shows that the top 50% rated industries outperform the bottom half by a factor of 2 to 1. The Zacks Rank system, which ranges from #1 (Strong Buy) to #5 (Strong Sell), has an impressive outside-audited track record of outperformance, with #1 stocks generating an average annual return of +25% since 1988. The Zacks Consensus EPS estimate remained stagnant within the past month.
Big Hedge Fund Bets on Exxon, Domino’s, and Coke Stock
Get stock recommendations, portfolio guidance, and more from The Motley Fool’s premium services. Volatility profiles based on trailing-three-year calculations of the standard deviation of service investment returns. Investors are also likely to see higher cash returns over time from dividends and stock buybacks. Coke is on track to generate $12 billion in operating cash, up significantly compared to pre-COVID-19 levels.
- These revisions help to show the ever-changing nature of near-term business trends.
- 2023 will continue to be an inflationary year, and we’ve provided some guidance regarding how we expect prevailing commodity prices to impact our per case cost.
- The most predictable portion of shareholders’ rising returns in the next few years is Coke’s dividend.
As businesses transfer more of their data and platforms into the cloud, demand for Snowflake’s cloud-based solutions should only grow. Given Warren Buffett’s overwhelming success for more than a half-century, it’s no surprise that investors tend to mirror his trading activity to achieve outsized gains of their own. This can be done by tracking Berkshire Hathaway’s Form 13F filings, which detail the company’s buying and selling activity during the prior quarter. Management is targeting more progress ahead for 2024 and beyond as the company benefits from strategic price increases and rising demand for on-the-go beverages. “We are executing efficiently and effectively on a local level while maintaining flexibility on a global level,” CEO James Quincey said in late July.
At the same time, the Dow lost 0.22%, and the tech-heavy Nasdaq gained 0.67%. Please log in to your account or sign up in order to add this asset to your watchlist. Upgrade to MarketBeat All Access to add more stocks to your watchlist. 797 employees have rated Coca-Cola Chief Executive Officer James Quincey on Glassdoor.com.
This metric is used similarly to the famous P/E ratio, but the PEG ratio also takes into account the stock’s expected earnings growth rate. Beverages – Soft drinks stocks are, on average, holding a PEG ratio of 2.39 based on yesterday’s closing prices. The Coca-Cola Company is headquartered in Atlanta, Georgia, and operates as a beverage company worldwide with sales in over 200 countries. The company manufactures, markets, and sells various nonalcoholic beverages and has expanded well beyond soda and pop. After years of expansion and acquisitions, The Coca-Cola Company is represented in verticals from sparkling soft drinks to flavored water, enhanced water, sports beverages, juice, dairy, tea, and coffee. Brands under the Coca-Cola umbrella include Fanta, Fresca, Schweppes, Sprite, Dasani, Gold Peak, Minute Maid, Simply, BODYARMOR, FUZE TEA, and Powerade brands.
Despite being fallible, the affably named Oracle of Omaha has doubled-up the annualized total return of the benchmark S&P 500 since taking over as the CEO of Berkshire Hathaway (BRK.A -0.66%) (BRK.B -0.63%) in 1965. Assuming the company continues its positive operating momentum, then it will just be a matter of time before Wall Street rewards the stock with a higher valuation. In the meantime, shareholders can collect that rising dividend check as they wait for Coke’s stock to begin reflecting the company’s operating wins. Our confidence stems from the fact that we operate in an industry that will enjoy growth for a long time to come driven by macro, social, economic and behavioral factors. On top of this we have some category-related headwind while we expect a tailwind from emerging markets.
Coca-Cola Stock: Buy, Sell, or Hold?
Secondly, we’re already seeing Snowflake’s growth rate meaningfully decelerate. While this is still a phenomenal growth rate in a challenging environment, it’s clear that Snowflake’s momentum is beginning to fade. Coke’s valuation is sitting at less than 6 times annual sales today, putting it roughly in the middle of the extremes that investors have seen over the past few years. You could purchase the beverage giant for about 4.3 times sales during the worst days of the pandemic market slump, and shares were trading at over 7 times sales at several points during the subsequent rally. Coca-Cola Co KO shares are trading lower by 1.2% to $56.91 during Monday’s session, depsite a lack of company-specific news.
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Meanwhile, our latest consensus estimate is calling for revenue of $11.48 billion, up 3.78% from the prior-year quarter. Heading into today, shares of the world’s largest beverage maker had lost 5.61% over the past month, outpacing the Consumer Staples sector’s loss of 6.35% and lagging the S&P 500’s loss of 4.45% in that time. Coca-Cola’s stock is owned by a variety of retail and institutional investors. Shareholders of record on Friday, September 15th will be paid a dividend of $0.46 per share on Monday, October 2nd. Since then, KO shares have decreased by 12.8% and is now trading at $55.48.
Coca-Cola’s (KO -0.89%) stock barely budged after the company’s recent operating update. The beverage giant this week listed new challenges that weren’t obvious in its last earnings report, including accelerating inflation, geopolitical conflict, and new COVID-19 mergers and acquisitions ma shutdowns. Just as the stocks I’ve highlighted to buy have headwinds they’re contending with, the stock to avoid, Snowflake, has potential catalysts that could send its valuation higher. For instance, enterprise cloud spending is still in its very early innings.
Coca-Cola (KO) Stock Sinks As Market Gains: What You Should Know
Out of the 12 U.S. recessions since the end of World War II, just three have lasted at least 12 months. Comparatively, almost every economic expansion has lasted multiple years, with one clocking in at more than a decade. The point is that Mastercard benefits from these long-winded expansions and gets to grow in lockstep with the U.S. and global economy over the long term. Insiders have sold a total of 2,225,180 Coca-Cola shares in the last 24 months for a total of $138,519,713.90 sold. Insiders have purchased a total of 34,183 KO shares in the last 24 months for a total of $2,059,207.07 bought. Margins are not dictated necessarily by the category in which you play in, but more by how you choose to play and your leadership position within a category.
The consensus among Wall Street analysts is that investors should “moderate buy” KO shares. When things are uncertain from an economic perspective, investors aren’t typically willing to pay 142 times adjusted success day trading forward-year earnings for a company whose sales growth is decelerating. While these are tangible concerns, none is particularly worrisome for long-term investors or a threat to Coca-Cola’s growth strategy.
Just don’t expect any quick fireworks or a rapid rebound — Coca-Cola’s stock is neither a bargain nor a ripoff at these prices. 12 brokerages have how to buy ravencoin issued 12 month price objectives for Coca-Cola’s shares. On average, they predict the company’s share price to reach $68.33 in the next year.
