Some of the most popular brands include Coca-Cola, Sprite, Fanta, Powerade, and Dasani. Despite this debt, Coca-Cola’s ability to pay off its current liabilities has actually increased. Coca-Cola’s current ratio (a comparison of a company’s current assets to its current liabilities) is 1.12, which is generally considered normal for the industry. This means that Coca-Cola has $1.12 in liquid assets to cover every dollar of current debt.
- A trading channel is drawn using parallel trendlines to connect a security’s support and resistance levels within which it currently trades.
- For good reason, soft-drink giant Coca-Cola (KO -0.03%) is one of Warren Buffett’s favorite stocks.
- Coca-Cola has supported the consolidation occurring among its bottlers.
- The company expects a 4% to 5% FXN increase in earnings compared to the $2.69 posted for 2023, which is good but only as expected.
- Coca-Cola comes with a strong balance sheet and a plethora of popular brands.
The Motley Fool reaches millions of people every month through our premium investing solutions, free guidance and market analysis on Fool.com, top-rated podcasts, and non-profit The Motley Fool Foundation. The margin news is good but not the catalyst for higher share prices that it might have been. The company widened its operating margin by 50 bps GAAP and 40 adjusted to leave the GAAP EPS down 2% YOY and the adjusted earnings in alignment with the consensus. As-expected earnings are fine but, in this case, weak due to the top-line strength, and the guidance isn’t much of a catalyst either. Coca-Cola’s stock was trading at $58.93 at the beginning of the year. Since then, KO shares have increased by 0.7% and is now trading at $59.35.
The company is expected to register top-line growth when it reports fourth-quarter 2023 numbers. The estimate suggests a 13.9% decline from the year-ago reported quarter. TAP has delivered an earnings surprise of 41.3%, on average, in the trailing four quarters.Dutch Bros (BROS Quick QuoteBROS – Free Report) currently has an Earnings ESP of +9.38% and a Zacks Rank #3. BROS is anticipated https://g-markets.net/ to register top-line growth when it reports fourth-quarter 2023 results. The consensus estimate suggests a 33.3% decline from the prior-year quarter’s reported figure. BROS has delivered an earnings beat of 57.1%, on average, in the trailing four quarters.Monster Beverage (MNST Quick QuoteMNST – Free Report) has an Earnings ESP of +1.65% and a Zacks Rank #3 at present.
If you need to open one, these are some of the best-rated brokers and trading platforms. Here’s a step-by-step guide to buying Coca-Cola stock using the five-star-rated platform Fidelity. The Coca-Cola Company expected organic growth to continue in 2024 but to slow to 6% to 7%.
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Coca-Cola comes with a strong balance sheet and a plethora of popular brands. The company has a long and successful history of adapting to ever-changing consumer tastes and global market conditions. Let’s dive into the world’s largest beverage company to see whether Coca-Cola is a buy, sell, or hold today.
The combination of a positive Earnings ESP and a Zacks Rank #1 (Strong Buy), 2 (Buy) or 3 (Hold) increases the odds of an earnings beat. You can uncover the best stocks to buy or sell before they’re reported with our Earnings ESP Filter.Coca-Cola has a Zacks Rank #3 and an Earnings ESP of +0.70%. Net income for the quarter fell about 3% from a year ago to $1.977 billion or 46 cents per diluted share.
This includes the sale of sparkling beverages and nonalcoholic drinks to retailers. They are also sold to distributors and wholesalers who, in turn, sell them to retailers. The company reported consolidated net operating revenue of $10.98 billion for the quarter. The primary driver in revenue growth was an 11% increase in price/mix. Gross profits increased by 4% from the same period, going from $6.40 billion to $6.67 billion. Enterprise value (EV) is a measurement often employed by investment bankers to determine a company’s price if it were to be put on the market.
Weak buying interest also lowers the odds for a breakout into the low $50s, with the on-balance volume (OBV) accumulation-distribution indicator slumping near first quarter lows. The beverage giant’s income is highly levered to worldwide partnerships with restaurant, entertainment, and sports venues that have been closed or capacity-restricted due to the pandemic. Coca-Cola’s rival has benefited from a hugely popular line of at-home snacks that include Doritos, Quaker Oats, Tropicana, and Lay’s Potato Chips. Investors interested in Coca-Cola have alternative options to buying shares directly. They could also consider passively investing in the beverage stock through a fund that holds its shares. Founded in 1993, The Motley Fool is a financial services company dedicated to making the world smarter, happier, and richer.
Coca-Cola HBC Leads FTSE 100 on Record Profits Driven by Volume Growth
Zacks Rank stock-rating system returns are computed monthly based on the beginning of the month and end of the month Zacks Rank stock prices plus any dividends received during that particular month. A simple, equally-weighted average return of all Zacks Rank stocks is calculated to determine the monthly return. The monthly returns are then compounded to arrive at the annual return. Only Zacks Rank stocks included in Zacks hypothetical portfolios at the beginning of each month are included in the return calculations.
ZacksTrade does not endorse or adopt any particular investment strategy, any analyst opinion/rating/report or any approach to evaluating individual securities. Customize the view of stock chart with the ability to show key indicators such as Earnings, Dividends & Splits as well as filtering to view only Pre- and Post-Market prices. Click the link below and we’ll send you MarketBeat’s list of ten stocks that will drive in any economic environment. New Rank-Based ScoringMarketRank™ is calculated by averaging available category scores (with extra weight given to analysis and valuation), then ranking the company’s weighted average against that of other companies. Coca-Cola is a dominating force in the United States with almost 46% of the country’s carbonated soft drink market.
Dividend Strength
Underwriters of the original IPO received $100,000 worth of shares in compensation for the deal and were able to sell it for $2 billion at that time. The Coca-Cola Company is also a component of the Dow Jones Industrial Average holding its position from 1932 to 1935 and from 1987 to the present. The Coca-Cola Company has grown from humble beginnings into a global beverage giant. The company expects to grow its earnings steadily in the coming years.
The Coca-Cola Company is headquartered in Atlanta, Georgia, and operates as a beverage company worldwide with sales in over 200 countries. The company manufactures, markets, and sells various nonalcoholic beverages and has expanded well beyond soda and pop. After years of expansion and acquisitions, The Coca-Cola Company is represented in verticals from sparkling soft drinks to flavored water, enhanced water, sports beverages, juice, dairy, tea, and coffee.
The Coca-Cola Company had a good quarter aided by its lean into brand and strategy. The company relies heavily on local bottlers to carry the Coca-Cola message to the target markets, which is working. Revenue grew by 6.9% in Q4, driven by volume and pricing, to outpace the Marketbeat.com consensus by 150 basis points. The strength is due to a 2% increase in unit case volume, a 3% increase in concentrate sales, and a 9% gain in price/mix. Organic sales are up 12%, aided by a 1% tailwind from an additional day.
Investors need to ensure it’s the right fit for their portfolio before buying shares. Several ETFs focus on consumer staples stocks, giving them a more meaningful allocation to Coca-Cola. Consumer Staples ETF (IYK -0.59%) has the largest allocation to Coca-Cola at 10.7%.
Motley Fool Investing Philosophy
Brands under the Coca-Cola umbrella include Fanta, Fresca, Schweppes, Sprite, Dasani, Gold Peak, Minute Maid, Simply, BODYARMOR, FUZE TEA, and Powerade brands. As of mid-2023, Coca-Cola’s dividend yield was slightly more than 3%, roughly double that of the S&P 500. The beverage company’s attractive yield and steady dividend growth make its stock ideal for income-focused investors like retirees. The Coca-Cola Company is a solid dividend for income investors, trading at a value level relative to the past few years at 22X earnings and yielding 3.1%. The payout ratio is nearly 70% of its earnings, but the distribution is reliable and expected to grow. The pace of distribution growth isn’t large, but it is sustainable, given the outlook for earnings growth in 2024.
Unit case volume, a measure of the volume of beverages sold by Coca-Cola, increased the most in the Latin America market. In North America, higher prices helped offset the impact of lower sales volume. The Coca-Cola Company first went public in 1919 and it began paying a dividend in 1920. how to day trade forex The company has raised its dividend every year since 1962 making it a Dividend King. To put the company’s growth and scale into perspective, one share of KO purchased at the IPO price of $40 was worth nearly $10 million in 2012 and the stock price has nearly doubled since then.
