The Coca-Cola Company (KO), headquartered in Atlanta, Georgia, is a global leader in the beverage industry, specializing in the production, marketing, and distribution of non-alcoholic drinks. With a market cap of $304.5 billion, Coca-Cola is renowned for its extensive portfolio of iconic brands, including Coca-Cola, Sprite, and Fanta, which cater to a diverse global audience.
Companies worth $200 billion or more are generally described as “mega-cap stocks,” Coca-Cola firmly holds its place in this elite category. As consumer preferences evolve, Coca-Cola’s ability to innovate, whether through new product offerings, sustainable initiatives, or strategic marketing - ensures its continued relevance.
KO stock is trading 3.6% below its 52-week high of $73.53, achieved recently on Sept. 4. Shares of Coca-Cola have gained 10% over the past three months, outperforming the broader S&P 500 Index’s ($SPX) 2.3 % decline during the same time frame.
However, over the longer term, KO is up 13.8% on a YTD basis, and the stock has soared 17.5% over the past 52 weeks. By contrast, the SPX is down marginally in 2025 and has surged 15.4% over the past year.
To confirm the bullish price trend, KO has been trading above its 50-day and 200-day moving average since early February.
On Feb. 11, KO surged over 4% following its strong Q4 earnings results. The company’s revenue climbed 5.4% year over year to $11.54 billion, surpassing estimates by 7.8%. Adjusted EPS came in at $0.55, beating projections by 6.4%, while adjusted EBITDA reached $3.27 billion with a 28.3% margin, exceeding forecasts by 11.7%. Operating margin improved to 23.5% from 20.8% a year ago, and free cash flow margin jumped to 27.3% from 16.6%.
To emphasize the stock’s outperformance this year, Coca-Cola’s top rival, PepsiCo Inc (PEP), is underperforming – not just KO but the broader market. PEP stock declined 9.6% over the past 52 weeks and dipped marginally on a YTD basis.
Analysts hold a strongly optimistic view of the KO stock’s potential. The stock has a consensus rating of “Strong Buy” from 22 analysts covering it, and the mean price target of $76.05 is a premium of 7.3% to current price levels.
