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Can Coca-Cola Stock Continue to Beat the Market?
The Motley Foolยท 2025-06-20 21:18
Group 1 - Coca-Cola has had a strong performance in 2025, up 15%, outperforming the S&P 500 which is up 3% [1] - The company is the largest beverage company globally, with $48 billion in trailing-12-month sales and about 200 brands, 30 of which generate over $1 billion in sales each [2] - Coca-Cola demonstrates resilience even in tough economic conditions, often outperforming when investors seek safe stocks [3] Group 2 - The company benefits from low exposure to tariffs due to its localized production approach, with most U.S. products made domestically [5] - In Q1, Coca-Cola reported a 2% year-over-year increase in unit case volume and gained market share across all beverage categories [6] - Organic revenue increased by 6%, adjusted operating income rose by 10%, and comparable operating margin improved to 33.8% from 32.4% [7] Group 3 - Coca-Cola has transformed under CEO James Quincey since 2018, restructuring its brand portfolio and emerging stronger post-pandemic [10] - The company is now positioned for growth with a 10-year high in EPS and various strategies to enhance affordability and marketing [12] - The overall beverage industry is expected to grow in the mid-single digits, providing Coca-Cola with organic growth opportunities [13] Group 4 - Coca-Cola has significant room for growth in emerging markets, holding only 7% market share despite 80% of the world's population being in these regions [14] - The company continues to acquire new global brands that integrate well into its distribution system, contributing to high-margin revenue [15]