Why Coca Cola Stock Is Down Several factors hit Coca Cola during the coronavirus pandemic, but to fully understand it, you need to know its revenue sources. Much of the company’s revenue comes from selling concentrated syrups wholesale to regional bottling facilities, which largely operate as franchises.
Full Answer
Is Coca-Cola stock lagging the market this year?
Coca-Cola ( NYSE:KO) stock is trailing the market this year. Shares have fallen 19% compared to a 4% decline in the S&P 500 through the end of June, according to data provided by S&P Global Market Intelligence. That drop also put the beverage giant well behind peer PepsiCo ( NASDAQ:PEP), which slumped just 3% through the first half of 2020.
Is Coca-Cola a good stock to invest in?
The analyst's call comes as Coke has surprisingly been a top-performing stock these past three months. Bottles of Coca-Cola soft drinks are displayed at a supermarket in the Brooklyn borough of New York. (Photo by Ramin Talaie/Corbis via Getty Images)
Is Coke’s on-premise sales growth surprising?
We say surprising as the company-along with rivals in the packaged foods space-continue to battle high levels of inflation that is weighing on profit margin potential. And for Coke specifically, 40% of its U. S. sales are on-premise and 30% is on-premise overseas.
Is the rally in Coca-Cola's stock just beginning?
The rally in Coca-Cola's stock ( KO) is just beginning, said one closely watched beverage analyst on Wall Street.
Is Coca-Cola stock a good buy?
Coca-Cola has a current yield of 2.93%. The payout ratio is a bit above 72%, and the 5-year dividend growth rate is 3.66%. KO currently trades for $60.40 per share. The average one year price target of 14 analysts rating the company is $65.53.
Is Coca-Cola stock a good long term investment?
Dividend growth investors have been drawn to KO for a long time due to its impressive dividend growth record of 59 years. Even for the investor looking to only live off the dividends as income, KO shouldn't be seen as a bond proxy, or as a great dividend at any price though.
Is Coke a good stock to buy 2022?
Investors are also likely to see higher cash returns over time from dividends and stock buybacks. Coke is on track to generate $12 billion in operating cash, up significantly compared to pre-COVID-19 levels. All these factors should mean solid returns for investors holding this blue-chip stock.
Will Coke stock go up?
Stock Price Forecast The 22 analysts offering 12-month price forecasts for Coca-Cola Co have a median target of 70.00, with a high estimate of 76.00 and a low estimate of 64.00. The median estimate represents a +18.50% increase from the last price of 59.07.
Which stock is better Coke or Pepsi?
KO has a higher dividend yield, has had stronger share performance, and has more robust earnings growth rates. Additionally, the company has witnessed more substantial estimate revisions and hasn't had nearly as many analysts lowering their outlook.
Will Coca-Cola ever go out of business?
While we're all likely familiar with the disclaimer required by the SEC, "performance does not necessarily predict future results," the simple answer is: absolutely. But it isn't just that Coca-Cola will be around 100 years from now, but all signs point to the fact it will likely continue to thrive.
Is Coca-Cola stock undervalued?
Coca-Cola Co. (KO) shares are overvalued based on current multiples and the recent decline in revenue trends due to socio-demographic shifts in the soft drink market.
Is KO a good investment now?
The financial health and growth prospects of KO, demonstrate its potential to underperform the market. It currently has a Growth Score of C. Recent price changes and earnings estimate revisions indicate this would be a good stock for momentum investors with a Momentum Score of B.
Is Coke going back to glass bottles?
To prepare for the expected drop in consumer purchasing power, Coca-Cola said it was expanding the distribution of cheaper returnable or refillable glass bottles in emerging markets in Latin America and Africa. It is also experimenting with returnable bottles in the Southwest United States.
Is Coca-Cola performing well?
Coca-Cola's e-commerce business has also been performing well, with a growth rate of the channel doubling in many countries. The company has been accelerating investments to build strong digital capabilities.
What is the highest Coca-Cola stock price?
The all-time high CocaCola stock closing price was 66.21 on April 21, 2022.
What is a good price for KO stock?
Stock Price Target KOHigh$76.00Median$70.00Low$64.00Average$70.43Current Price$59.43
How much market share does Coca-Cola have 2022?
For 2022, Coke is expecting comparable earnings per share growth of 5% to 6%, while Wall Street analysts were forecasting 6.1% growth. It expects higher commodity costs to hit earnings by mid-single digits. The company is also predicting organic revenue growth of 7% to 8% for the full year.
Is Coke or Pepsi 2022 more popular?
Since 2004, Coca-Cola Company has been the market leader, according to industry statistics. Pepsi ranks second, followed by Dr. Pepper-Snapple. In Q1 2022, PepsiCo had a market cap of $229.3 billion while Coca-Cola had a market cap of $268.4 billion.
Has Coke dropped 2022 sales?
Coca-Cola Consolidated, Inc. First quarter of 2022 net sales increased 11% versus the first quarter of 2021. Gross profit for the first quarter of 2022 was $508 million, up 13% versus the first quarter of 2021.
Is PepsiCo a good stock to buy 2022?
The company's stock has underperformed the benchmark S&P 500 over time, but it's outperforming it so far this year. With its efficient cost management, diversified product line, and global popularity, it may be a great stock to own in 2022.
Why Coca Cola Stock Is Down
Several factors hit Coca Cola during the coronavirus pandemic, but to fully understand it, you need to know its revenue sources.
Coca Cola Financials Remain Impressive
Coca Cola’s revenue from net sales for the second quarter of 2020 was $7.2 billion. It squeezed $1.78 billion in profit from this, which comes out to $0.42 cents earnings per share.
Is Coca Cola Valuation Too Low?
Coca Cola’s stock price took a massive hit from the coronavirus pandemic, dropping from a 52-week high of $60.13 to a low of $36.27, and it’s hovering in the $50 range.
Will Coca Cola Stock Rise?
Coca Cola stock has been turbulent on a macro level, but overall, it’s relatively steady. It always traded in the $20-$60 range, and it’s already in the high end of that range.
Is Coca Cola Stock Undervalued? The Bottom Line
Coca Cola is the biggest beverage company in the world, and it operates largely on a franchise model. The coronavirus shut down man of its biggest customers in stadiums, universities, event centers, and restaurants.
What companies did Coca Cola buy?
Notable acquisitions have included Minute Maid, Barq's, Fuze, Honest Tea, and Moxie. It also acquired a major stake in energy drink maker Monster Beverage ( NASDAQ:MNST) in 2015.
Is soda consumption in the US low?
Soda consumption in the US is currently at its lowest levels in over three decades, according to Beverage-Digest. That trend, which can be attributed to a consumer shift toward healthier beverages, is also reflected in other developed countries.
Does Coca Cola have organic sales?
Coca-Cola refers to its organic sales growth -- which excludes currency impacts, acquisitions, divestments, and other "one-time" charges -- as a measure of its overall health. Unfortunately, many of these "one-time" charges, like currency headwinds and the refranchising of its bottling operations, have been recurring over multiple quarters. That's why there's a big gap between Coca-Cola's organic and reported sales growth, and why the former looks much stronger than the latter:
Does Coca Cola pay dividends?
However, Coca-Cola paid out its dividends with more than 100% of its earnings and free cash flow (FCF) over the past 12 months, mainly due to the refranchising of its bottling operations.
