The Coca-Cola Company (KO), headquartered in Atlanta, Georgia, is a leading global beverage corporation with a market cap of $312.20 billion. Renowned for its iconic soft drinks, juices, and energy beverages, KO plays a crucial role in shaping the beverage industry and meeting the diverse tastes of consumers worldwide. Competing intensely with other beverage giants, Coca-Cola's main rivals include PepsiCo, Inc. (PEP), which is distinguished for its extensive range of snack foods and beverages.
Companies worth $200 billion or more are typically classified as "mega-cap stocks," and Coca-Cola certainly fits this category. A long-standing leader in the beverage industry, Coca-Cola has established a substantial presence in the global market and is recognized for its iconic brands and innovative product offerings.
KO shares are trading marginally below their 52-week high of $72.57, which they hit on Aug. 30. KO has seen a 16.9% gain over the last three months compared to the 8.4% returns seen in the Consumer Staples Select Sector SPDR Fund (XLP) during the same period.
Longer term, KO is up 22.9% on a YTD basis, and the shares have gained 22.2% over the past 52 weeks. In comparison, the XLP is up 14.4% in 2024 and 14.2% over the past year.
To confirm its bullish trend, KO has been trading above its 50-day moving average since late October 2023 and its 200-day moving average since mid-November 2023.
Coca-Cola stock has risen by 7.4% over the past month, staying positive for four consecutive trading sessions following its Q2 earnings release on Jul. 23. The company's EPS and revenue surpassed Wall Street expectations, driven by a 3% increase in net revenue to $12.4 billion and a 15% growth in organic revenue compared to the same quarter last year. During the quarter, Coca-Cola experienced both an increase in sales volume and higher prices.
Highlighting the contrast in performance, KO's competitor, PEP, has underperformed both KO and the broader market. PEP has experienced a 1.8% gain on a YTD basis.
Given its recent outperformance, analysts are optimistic about KO's prospects. The stock has a consensus rating of "Strong Buy" from 21 analysts in coverage. The mean price target is $70.42, which indicates that the stock trades at a premium.
On the date of publication, Rashmi Kumari 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.
