5 Reasons Coca-Cola Stock Will Hit New Highs This Year

Core Viewpoint - Coca-Cola is positioned for potential all-time high stock prices due to resilient earnings, strong capital returns, and positive market momentum [2][3]. Group 1: Financial Performance - Coca-Cola reported Q3 revenue of $12.5 billion, reflecting a 5% year-over-year increase, with organic growth at 6% [3][4]. - The company experienced strong growth in the Asia-Pacific and Europe-Middle East-Africa regions, both up by 7%, while Latin America and North America grew by 4% [4]. - Adjusted EPS reached 82 cents, a 6% increase, outperforming revenue growth by over 500 basis points [4]. Group 2: Guidance and Future Outlook - Coca-Cola reaffirmed its guidance for organic growth of 5% to 6% year-over-year, with improved free cash flow guidance [5][6]. - The cautious guidance suggests potential outperformance in fiscal Q4 and the following year, indicating strong revenue growth [6]. Group 3: Capital Returns - Coca-Cola has a dividend yield of approximately 2.89% and an annual dividend of $2.04, with a track record of 64 consecutive years of dividend increases [7][9]. - The company maintains a dividend payout ratio of 72.34%, appealing to long-term and income-focused investors [8][9]. Group 4: Analyst and Institutional Support - Analysts maintain a Buy sentiment for Coca-Cola, with price targets around $76.70, indicating potential for new all-time highs [10][11]. - Post-Q3 release, the stock price rose over 3.5%, confirming a bullish trend supported by critical moving averages [12]. Group 5: Market Trends - Technical indicators suggest a secular-grade price upswing for Coca-Cola, with potential for continued upward movement over the next several months to two years [12][13].