Core View - Coca-Cola and PepsiCo are historically popular among hedge funds and institutional investors, with both companies owned by major investors like Vanguard Group and BlackRock [1] - The analysis compares Coca-Cola and PepsiCo as potential investments heading into 2025, focusing on financial metrics, growth outlook, and valuation [1] Low Beta Ratios - Both Coca-Cola and PepsiCo exhibit low beta ratios, indicating lower volatility compared to the S&P 500 Index (base value of 1.0) [2] - PepsiCo has a slightly lower beta score of 0.54 compared to Coca-Cola's 0.61, suggesting marginally better defensive safety [2] Growth & Outlook - PepsiCo's growth is bolstered by its presence in the consumer snacking market, with total sales expected to rise 1% in FY24 and 3% in FY25 to $94.8 billion [3] - PepsiCo's annual earnings are projected to increase 7% in FY24 and 5% in FY25 to $8.59 per share [3] - Coca-Cola's revenue is projected to grow 1% in FY24 and 4% in FY25 to $48.02 billion, with EPS growth of 6% in FY24 and 3% in FY25 to $2.96 per share [6] Performance & Valuation Comparison - Over the past year, Coca-Cola outperformed PepsiCo with a total return of +4% (including dividends), compared to PepsiCo's -11%, though both lagged the S&P 500's +27% [8] - Over the last five years, both companies significantly underperformed the broader market's total return of +105% [8] - Coca-Cola and PepsiCo trade at forward P/E multiples of 20.5X and 17X, respectively, both below the benchmark's level [9] - PepsiCo trades at a more attractive valuation of less than 2X sales, compared to Coca-Cola's 5.6X [9] Dividend Comparison - PepsiCo offers a higher annual dividend yield of 3.71%, compared to Coca-Cola's 3.19%, both significantly above the S&P 500's average of 1.2% [11] Takeaway - Both Coca-Cola and PepsiCo currently hold a Zacks Rank 3 (Hold), with PepsiCo showing advantages in several financial metrics, while Coca-Cola remains viable for long-term investors [13] - Investors may consider other options in the consumer staples sector but should monitor these companies amid potential market volatility in 2025 [13]

Coca-Cola (KO) closed at $60.81 in the latest trading session, marking a -1.52% move from the prior day. The stock's performance was behind the S&P 500's daily gain of 0.55%. At the same time, the Dow lost 0.06%, and the tech-heavy Nasdaq gained 1.24%.Analysts and investors alike will be keeping a close eye on the performance of Coca-Cola in its upcoming earnings disclosure. On that day, Coca-Cola is projected to report earnings of $0.52 per share, which would represent year-over-year growth of 6.12%. Meanw ...

Dividend Policy and Investor Expectations - The Coca-Cola Company typically announces its annual dividend increases on the third Thursday of February, a date that long-term investors, particularly those focused on Dividend Growth Investing (DGI) and Dividend Reinvestment Plans (DRIP), look forward to [1] - Investors often categorize their investments into serious money for long-term strategies like GARP (Growth at a Reasonable Price) and play money for short-term trading [1] Analyst's Position and Disclosure - The analyst holds a beneficial long position in Coca-Cola shares through stock ownership, options, or other derivatives, and the article reflects their personal opinions [2] - The analyst is not receiving compensation for the article other than from Seeking Alpha and has no business relationship with any company mentioned [2] Seeking Alpha's Disclosure - Seeking Alpha emphasizes that past performance does not guarantee future results and does not provide investment recommendations or advice [3] - The views expressed in the article may not reflect those of Seeking Alpha as a whole, and the platform is not a licensed securities dealer, broker, or investment adviser [3]

I’ve decided to start reviewing so-called “dividend aristocrats” and “dividend kings” this year. I thought it would be fun to start with one of the most iconic names on this list: The Coca-ColaI'm a quant investment newsletter writer who marries fundamental analysis with the latest research in momentum. Over the past few years, I’ve developed a piece of software that helps me track the level of optimism and pessimism embedded in stock price. I seek to challenge the assumptions embedded in price by profitabl ...

I am focused on growth and dividend income. My personal strategy revolves around setting myself up for an easy retirement by creating a portfolio which focuses on compounding dividend income and growth. Dividends are an intricate part of my strategy as I have structured my portfolio to have monthly dividend income which grows through dividend reinvestment and yearly increases. Feel free to reach out to me on Seeking AlphaAnalyst’s Disclosure: I/we have a beneficial long position in the shares of KO, NVDA ei ...

I give the Coca-Cola Company (NYSE: KO ) a strong buy rating because the company has excellent cash flow, high-quality earnings, trades at a market price discount of almost 32% below its intrinsic value of $90.44, a solid dividend yield and payoutMy main goal when performing a fundamental analysis is to dig into the numbers of a company to find its intrinsic worth and, hopefully, to find company's trading at a steep discount using a discounted cash flow model when possible.I followed a similar path to that ...

Coca-Cola (KO -0.43%) is the kind of stock you buy when it is reasonably priced and hold on to forever. Right now could be just such a buying opportunity, given the 15% stock price decline over the past year, most of which has occurred in just the past three months. Not only is Coca-Cola a longtime member of the S&P 500 index, but it is also a Dividend King.Coca-Cola gets one thing rightTo be honest, I'm a PepsiCo (PEP -0.24%) person. I like that PepsiCo has a strong beverage business, an even stronger salt ...

Company Overview - Coca-Cola is a top beverage stock owned by Berkshire Hathaway and Warren Buffett, representing 8.4% of Berkshire's public equities portfolio [1] - The company has a durable competitive advantage with its globally recognized brand, operating in over 200 countries and territories [2] - Coca-Cola holds a 40% market share in the non-alcoholic ready-to-drink industry [2] Financial Performance - In Q3 2024, Coca-Cola's unit volume decreased by 1% year-over-year, but this was offset by a 10% price increase [3] - The company has consistently raised its dividend for 62 consecutive years, with a current dividend yield of 3.1% [8][9] - Over the past decade, Coca-Cola's operating margin has averaged an impressive 26.8% [11] Investment Considerations - Coca-Cola's stock has dropped 14% from its September all-time high and currently trades at a P/E ratio of 25.8, slightly higher than the S&P 500 [1][7] - The company's low growth prospects and mature market limit its ability to significantly increase revenue [6][7] - Coca-Cola is not expected to outperform the S&P 500 in the long term but may appeal to dividend-focused investors [9] Strategic Advantages - Coca-Cola possesses strong pricing power, allowing it to combat inflationary pressures by raising prices [3] - The company faces virtually no risk of obsolescence, providing a high level of predictability in its business model [4][5] - Coca-Cola's consistent performance and lack of disruption risk contribute to its status as a high-quality enterprise [1][4]

Coca-Cola (KO) closed the most recent trading day at $62.84, moving +0.74% from the previous trading session. The stock fell short of the S&P 500, which registered a gain of 1.1% for the day. Meanwhile, the Dow gained 0.91%, and the Nasdaq, a tech-heavy index, added 1.35%.The the stock of world's largest beverage maker has fallen by 3.11% in the past month, leading the Consumer Staples sector's loss of 4.15% and undershooting the S&P 500's gain of 0.22%.The investment community will be paying close attentio ...

Through Berkshire Hathaway (NYSE: BRK.A), Warren Buffett has built a reputation for picking long-term stock market winners and building a portfolio that thrives in different economic phases.However, even his most trusted investments remain susceptible to short-term technical signals that suggest possible trouble ahead.Now, Coca-Cola (NYSE: KO), one of Buffett’s favored stocks, accounting for 8.4% of his portfolio, has formed a ‘death cross‘ for the first time since July 2023 – a bearish signal when the 50-d ...