Atlanta, Georgia-based The Coca-Cola Company (KO) is a beverage company with a market cap of $346.5 billion. It manufactures and sells various nonalcoholic beverages.
Companies worth $200 billion or more are typically classified as “mega-cap stocks,” and KO fits the label perfectly, with its market cap exceeding this threshold, underscoring its size, influence, and dominance within the beverages - non-alcoholic industry. The company operates in over 200 countries with one of the world’s most efficient bottling and supply chain systems, giving it a strong competitive moat. Its specialty is brand building and marketing excellence, with iconic products like Coca-Cola, Sprite, Fanta, and Minute Maid driving consistent consumer demand
This beverage giant has touched its 52-week high of $81.09 in the last trading session. Shares of KO have soared 11.1% over the past three months, outpacing the First Trust Nasdaq Food & Beverage ETF’s (FTXG) 10.6% rise during the same time frame.
Moreover, on a YTD basis, KO shares are up 15.1%, compared to FTXG’s 13.1% return. In the longer term, KO has surged 14% over the past 52 weeks, outpacing FTXG’s 1.1% gain over the same period.
To confirm its bullish trend, KO has been trading above its 200-day and 50-day moving averages since early January.
On Feb. 10, KO shares plunged 1.5% after delivering mixed Q4 results. The company’s net revenue grew nearly 2% year-over-year to $11.8 billion, and organic revenues increased 5%, driven by a 4% increase in concentrate sales and 1% growth in price/mix. Yet, its top line missed consensus estimates by 1.9%. However, its adjusted EPS of $0.58 topped analyst expectations by a penny.
KO has also outperformed its rival, PepsiCo, Inc. (PEP), which rose 9.8% over the past 52 weeks. However, it has lagged PEP’s 17.8% YTD uptick.
Given KO’s recent outperformance, analysts remain highly optimistic about its prospects. The stock has a consensus rating of “Strong Buy” from the 24 analysts covering it, and the mean price target of $83.61 suggests a 3.7% premium to its current price levels.
On the date of publication, Neharika Jain did not have (either directly or indirectly) positions in any of the securities mentioned in this article. All information and data in this article is solely for informational purposes. For more information please view the Barchart Disclosure Policy here.
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