Core Viewpoint - Coca-Cola is well-positioned to continue its earnings-beat streak in upcoming reports, supported by a history of positive earnings surprises and favorable analyst estimates [1][3]. Earnings Performance - For the most recent quarter, Coca-Cola reported earnings of $0.77 per share, exceeding the expected $0.74 per share, resulting in a surprise of 4.05% [2]. - In the previous quarter, the company reported $0.84 per share against an expectation of $0.80 per share, achieving a surprise of 5% [2]. Analyst Sentiment - Estimates for Coca-Cola have been trending higher, reflecting the company's earnings surprise history, which has led to a positive Zacks Earnings ESP of +0.51% [3][6]. - The positive Earnings ESP, combined with a Zacks Rank of 3 (Hold), indicates a strong possibility of another earnings beat in the near future [6]. Predictive Metrics - Research indicates that stocks with a positive Earnings ESP and a Zacks Rank of 3 or better have a nearly 70% chance of producing a positive surprise [4]. - The Zacks Earnings ESP compares the Most Accurate Estimate to the Zacks Consensus Estimate, suggesting that recent analyst revisions may provide more accurate predictions [5]. Importance of Earnings ESP - The Earnings ESP metric is crucial for assessing the likelihood of a company beating earnings estimates, as a negative value can reduce predictive power but does not necessarily indicate an earnings miss [6][7].

Group 1: Company Overview - Coca-Cola operates in 200 countries and territories, selling numerous ready-to-drink products with 1.9 billion servings consumed daily, indicating its extensive global reach [1] - The company has generated a total return of 25,770% over the past 50 years, turning a $5,000 investment into over $1 million [1] Group 2: Investment Perspective - Warren Buffett's Berkshire Hathaway owns 9.3% of Coca-Cola's outstanding stock, reflecting strong investor confidence [2][3] - Coca-Cola's brand provides a significant economic moat, supported by effective marketing and distribution strategies [3] Group 3: Financial Performance - In Q3 of fiscal 2024, Coca-Cola's unit volume decreased by 1% year over year, but this was offset by a 10% increase in prices, showcasing the brand's pricing power [4] - The company has maintained an average operating margin of 27% over the past decade, demonstrating strong profitability [6] - Coca-Cola has raised its dividend for 62 consecutive years, currently yielding 3.19%, indicating a commitment to returning value to shareholders [6] Group 4: Market Position and Growth Outlook - Over the last decade, Coca-Cola shares generated a total return of 97%, underperforming the S&P 500's 258% return during the same period [7] - Future revenue growth is expected to be modest, with estimates of 4% in 2025 and 5% in 2026, reflecting the company's mature status in a low-growth industry [8] - The current price-to-earnings ratio of 25.1 suggests that shares are fully valued based on historical data, representing a slight premium to the overall market [9] Group 5: Long-term Investment Consideration - Investing $5,000 in Coca-Cola stock could potentially yield millionaire status, but it may take another 50 years, suggesting that alternative investments like an S&P 500 ETF may be more advantageous [10]

Core Viewpoint - Wall Street analysts believe Coca-Cola is undervalued despite a recent decline in stock price, suggesting potential for growth and income generation [1][10]. Company Performance - Coca-Cola shares have decreased approximately 15.5% since their peak in September [1]. - The CEO indicated a "challenging operating environment" in China, contributing to stock pressure [4]. - Unit case volume in the Asia-Pacific region fell by 2% year over year, with similar declines reported in Europe, the Middle East, and Africa [5]. Financial Metrics - Coca-Cola distributed $8.1 billion in dividends over the past 12 months, with an expected free cash flow of $9.2 billion in 2024 [8]. - The company has raised its dividend payout by only 18.3% over the past five years, which is below the inflation rate during the same period [9]. Market Sentiment - Analysts from Piper Sandler and TD Cowen have initiated coverage and upgraded Coca-Cola's rating, with price targets of $74 and $75, respectively, indicating potential gains of about 20% [2][3]. - Despite recent challenges, Coca-Cola's organic revenues grew by 9% year over year in the third quarter, suggesting resilience in its business model [10]. Dividend Outlook - Coca-Cola has a long history of dividend payments, having raised its payout for 62 consecutive years, currently offering a yield of 3.2% [11]. - While rapid dividend growth is unlikely, the strength of Coca-Cola's brands may allow for continued increases in dividends that outpace inflation over the next decade [12].

Core Viewpoint - Coca-Cola's stock has declined by 11.3% over the past three months, underperforming the Consumer Staples sector and the S&P 500, while slightly outperforming the broader industry [1][2]. Stock Performance - Coca-Cola's stock trades at $61.71, which is a 16.1% discount from its 52-week high of $73.53 and a 6.5% premium from its 52-week low [5]. - The stock is currently below its 50 and 200-day moving averages, indicating bearish sentiment [5][6]. - Compared to competitors, Coca-Cola has outperformed PepsiCo and Keurig Dr Pepper, which saw declines of 16.1% and 14.4%, respectively, but underperformed against Monster Beverage's gain of 0.6% [2]. Challenges - The decline in Coca-Cola's stock is attributed to soft volume trends, with a 1% year-over-year revenue drop reported in Q3 2024 [7][8]. - Unit case volume decreased by 1% and concentrate sales volume fell by 2%, with challenges noted in key markets like China, Mexico, and Türkiye [8]. - Macroeconomic factors such as low consumer confidence in China, geopolitical issues, and high inflation in Argentina are impacting revenues [9]. Currency and Revenue Impact - Currency headwinds are expected to affect 2024 revenues by 5%, with additional impacts from acquisitions and divestitures projected to reduce revenues by 4-5% [10]. - Comparable EPS growth is anticipated to face headwinds of 9% from currency fluctuations and 1-2% from structural changes [10]. Valuation - Coca-Cola maintains a high valuation with a forward P/E multiple of 20.84X, which is below its five-year median of 23.59X but above the broader industry multiple of 18.98X [11][12]. - The current valuation is considered unwarranted given the recent performance and challenges faced by the company [13]. Long-Term Growth Prospects - Despite recent declines, Coca-Cola's strong market presence and commitment to innovation position it for potential recovery [15]. - The company is expanding its product portfolio to include healthier options and is targeting the ready-to-drink alcoholic beverages market [16][17]. - Coca-Cola projects organic revenue growth at the higher end of its 2024 guidance, expecting a 10% year-over-year increase and a 14-15% rise in currency-neutral EPS [18]. Estimate Revisions - The Zacks Consensus Estimate for Coca-Cola's revenues and EPS for 2024 indicates year-over-year growth of 1% and 6%, respectively, with 2025 estimates showing growth of 3.98% and 3.8% [19].

Warren Buffett doesn't tell investors a lot about why he picks certain stocks. He gives a lot of general advice, but he usually steers clear of outright recommendations.But there are a few exceptions. The few times he mentions individual companies by name, it's nearly always the same ones. That includes Coca-Cola (KO 1.43%).If you don't know about Buffett's love of Coca-Cola, that might be surprising. Coca-Cola has underperformed the market for years, and it kept up that streak in 2024, gaining 9% while the ...

Between 2023 and the end of 2024, the S&P 500 (^GSPC 0.16%) gained a staggering 53.2%. The strong two-year performance has left the index with a relatively expensive valuation.The benefits of dividend stocks can be lost by the sound of a roaring market. But dividends can go a long way when the market is trading sideways or going down. Dividends are a way to book a return without selling stock, which can be helpful when equity prices are falling.Coca-Cola (KO 1.43%), Unilever (UL 0.52%), and LyondellBasell ( ...

Dividend Kings are an elite category of companies that have paid and raised their dividends for at least 50 consecutive years. But not all Dividend Kings have a schedule for making these raises.For decades, Coca-Cola (KO 1.43%) and Procter & Gamble (PG 0.50%) have raised their payouts in the first half of the calendar year. Here's why both Dividend Kings stand out as solid buys for 2025. Coke's next dividend raise should come in February or MarchCoke has paid and raised its dividend for 62 consecutive years ...

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]