Group 1: Coca-Cola - Coca-Cola reached a record high recently, demonstrating resilience despite market pressures from tariff announcements [3][4] - The company is viewed as a safe investment, with a strong consumer base that continues to purchase its beverages even during economic downturns [4][5] - Coca-Cola has a history of paying and increasing dividends, having raised its dividend for the 63rd consecutive year, with a current yield of 2.9%, significantly above the S&P 500 average of 1.3% [6][7] Group 2: Kroger - Kroger is the largest premium supermarket chain in the U.S., with over 2,700 stores and trailing-12-month revenue of $147 billion, making it a stable investment [8][9] - The company anticipates minimal impact from tariffs due to its domestic operations in the food sector and is diversifying its supplier base to mitigate risks [9][10] - Kroger's stock has more than doubled over the past five years, and it offers a dividend yield of 1.9%, which is above the S&P 500 average, making it a reliable source of passive income [10]

The major indexes just suffered a historic sell-off eerily reminiscent of the COVID plunge in March 2020. But during a week when most stocks were hitting 52-week lows, Coca-Cola (KO -2.39%) was an exception.Coke hit an all-time high on April 3 before pulling back on April 4. For the week, it was down just 0.6% compared to a 7.9% decline in the Dow Jones Industrial Average (^DJI -0.91%), a 9.1% sell-off in the S&P 500 (^GSPC -0.23%), and a 10% decline in the Nasdaq Composite (^IXIC 0.10%).Here's why Coca-Col ...

The consumer staples sector typically draws interest during economic downturns as consumers buy these products regardless of economic conditions. Seeing as beverages are one of the most essential consumer items, Coca-Cola (KO)  stock is historically known to be a pleasant hedge against market volatility when economic uncertainty arises.This scenario is playing out with President Trump’s “Liberation Tariffs” rocking markets over the last few trading sessions. Amid the mayhem, Coca-Cola's stock hit a 52-week ...

Group 1 - Coca-Cola's stock has outperformed the market this year, increasing by 16% while the S&P 500 has decreased by 4%, indicating a shift towards safer investments amid economic fears [1] - The company is recognized for its strong brand and consistent demand for its products, with trailing-12-month sales reaching $47 billion, making it the largest beverage company globally [2] - Under CEO James Quincey, Coca-Cola has shown resilience, with a 3% revenue increase and a 12% rise in organic revenue, despite economic volatility [3] Group 2 - Coca-Cola is a Dividend King, having raised its dividend for 63 consecutive years, with a recent yield around 2.8% due to high stock prices [4] - The company's growth is typically steady, and it has historically lagged behind the market, with gains often occurring during economic downturns [5] - The stock's performance may depend on economic conditions, particularly regarding tariffs and trade wars, which could influence investor confidence [6] Group 3 - Investors appreciate Coca-Cola for its reliable passive income and potential for growth, with management estimating a 14% market share in developed countries and only 7% in developing regions, which represent 80% of the global population [7] - The company often enhances growth through acquisitions but may focus on innovation and packaging strategies in the current economic climate [8] - For 2025, management projects 5% to 6% organic revenue growth, 8% to 10% comparable EPS growth, and $9.5 billion in adjusted free cash flow, indicating positive market sentiment [9]

Core Viewpoint - The beverage industry presents diverse investment opportunities, with Constellation Brands and Coca-Cola as key players, but their stock performances have diverged significantly in early 2025 [1][2]. Constellation Brands - Constellation Brands is facing challenges due to a 20% tariff on imports from Mexico, impacting its flagship brands like Corona and Modelo [3]. - The company is implementing strategic measures such as cost cuts, inventory stockpiling, and potential price hikes to mitigate the impact of increased costs [4]. - Despite recent turbulence, analysts project a 2% revenue growth and a 12% increase in earnings per share (EPS) to an estimated $13.46, indicating strong underlying demand [5]. - The stock is currently trading at a forward price-to-earnings (P/E) ratio of 13, which is considered a bargain compared to Coca-Cola's P/E ratio of around 24 [6]. - There is optimism that the tariffs may be temporary, and the fundamentals of Constellation Brands remain solid, making it a potential buy for investors [7]. Coca-Cola - Coca-Cola has effectively navigated tariff pressures due to its robust global supply chain and diverse product portfolio, which includes over 200 brands [8]. - In 2024, Coca-Cola's organic revenue grew by 14% year-over-year, with adjusted EPS increasing by 7% to $2.88, and management anticipates continued growth in 2025 [9]. - The company's strong execution across various economic conditions has established it as a stable investment, supported by high-quality earnings and cash flow [10]. - Coca-Cola has a long history of dividend increases, with a recent hike of 4.8% to $0.51 per share, resulting in a current dividend yield of nearly 3%, higher than Constellation Brands' 2.2% yield [10]. Investment Decision - While both stocks are viewed positively, Constellation Brands is considered the better buy due to its discounted valuation and potential for outperforming in 2025 [11]. - The significant sell-off in Constellation Brands may have already factored in worst-case scenarios, positioning it favorably for future performance as financial results reaffirm its strengths [12].

Coca-Cola (KO 2.62%) stock gained 15% in the first quarter of the year, according to data provided by S&P Global Market Intelligence. As the market absorbed the possibility of a new tariff program, investors moved toward safe stocks like Coca-Cola. While the market tumbled yesterday with the full news of the new program, Coca-Cola stock zoomed even higher.Everyone needs a cold drinkCoca-Cola is an anchor stock for a diversified portfolio because it's so reliable for stability and passive income. It sells so ...

Core Viewpoint - Coca-Cola is a durable and high-quality business with a strong brand and significant market presence, making it an attractive investment option despite low growth potential [2][4][8]. Group 1: Business Strengths - Coca-Cola has a portfolio of over 200 beverage brands and a global presence, contributing to its strong economic moat [2]. - The company's powerful brand supports its pricing power, allowing it to exceed Wall Street estimates in recent quarters [3]. - Coca-Cola's strategic outsourcing of bottling and distribution has led to impressive profitability, with an average operating margin of 26.9% over the past decade [5]. Group 2: Financial Performance - The company has maintained a consistent dividend payout for 63 consecutive years, yielding around 2.7%, which is more than double the average yield of the S&P 500 [6]. - Despite its strengths, Coca-Cola's revenue growth has been low, with only a 2.3% increase over the past decade, indicating limited expansion potential in a mature industry [8]. Group 3: Investment Considerations - Coca-Cola's current price-to-earnings (P/E) ratio of 29 is above its five-year average, reflecting a premium valuation that may not justify a strong buy recommendation [9]. - The stock has underperformed the S&P 500 over the past decade, with a total return of 139%, raising doubts about its ability to beat the market in the future [10]. - An initial investment of $5,000 would require an annualized return of 19.3% over 30 years to reach a million dollars, which is considered improbable given the current market conditions [11].

Investors often turn to recommendations made by Wall Street analysts before making a Buy, Sell, or Hold decision about a stock. While media reports about rating changes by these brokerage-firm employed (or sell-side) analysts often affect a stock's price, do they really matter?Let's take a look at what these Wall Street heavyweights have to say about Coca-Cola (KO) before we discuss the reliability of brokerage recommendations and how to use them to your advantage.Coca-Cola currently has an average brokerag ...

Investors also had concerns about how aluminum tariffs imposed by Trump might impact the company, but management largely shrugged the threat off, saying the company has the flexibility to focus on transitioning more of its drinks into plastic packaging. A true Buffett stock Now at 94 years old, Buffett is still the CEO of Berkshire but he's less involved in the business than he once was and has many experienced stock pickers at his disposal. So when Berkshire buys a stock, a frequent question is whether it ...

KO's full-year Zacks Consensus Estimates are calling for earnings of $2.96 per share and revenue of $47.97 billion. These results would represent year-over-year changes of +2.78% and +1.93%, respectively. Investors should also note any recent changes to analyst estimates for Coca-Cola. These revisions help to show the ever-changing nature of near-term business trends. As a result, we can interpret positive estimate revisions as a good sign for the company's business outlook. Based on our research, we believ ...