Still Time to Buy Coca-Cola Stock as a Defensive Hedge?

Core Insights - The consumer staples sector, particularly Coca-Cola, is seen as a hedge against market volatility during economic downturns [1] - Coca-Cola's stock has performed well amid market turmoil, reaching a 52-week peak of $73 and gaining 9% this year, contrasting with declines in the S&P 500 and PepsiCo [2] Brand Recognition & Institutional Ownership - Coca-Cola is one of the most recognized brands globally, with 70% of its shares owned by institutional investors, which helps mitigate panic selling [3] Economic Resilience - Coca-Cola's focus on its flagship beverage products allows it to better navigate economic fluctuations compared to Pepsi's diversified snack portfolio [4] Dividend Reliability - Coca-Cola has a current annual dividend yield of 2.92% and has increased its dividend for 64 consecutive years, outperforming Pepsi's 53 years [5][6] Growth Projections - Coca-Cola is expected to achieve 2% sales growth in fiscal 2025 and 5% growth in FY26, with projected annual earnings increasing by 3% this year and 8% in FY26 to $3.20 per share [8] Valuation Comparison - Coca-Cola's stock trades at a forward earnings multiple of 23.6X, above the industry average of 19.1X and Pepsi's 17.7X, but below its decade-high of 28.5X [9] Investment Outlook - Coca-Cola stock holds a Zacks Rank 3 (Hold), recognized as a reliable defensive investment despite its premium valuation compared to peers [12]