#1 - Coca-Cola (NYSE:KO)
The Coca-Cola Company (NYSE: KO) is an iconic soft drink company that is also known as one of Warren Buffett's favorite stocks. That's not a reason to buy or avoid the stock. However, the stock has elements that show you why it deserves to be on your consumer staples shopping list.
Earnings growth is one of the best predictors of stock price growth. Coca-Cola is forecast to show 7% earnings growth in the next 12 months, and that would support the Coca-Cola analyst ratings on MarketBeat, which is forecasting a 17% increase in the company's share price. To put that in perspective, that's commensurate with the growth in the S&P 500 in the first eight months of 2023.
KO stock also has a reasonable valuation. The 22x forward price-to-earnings (P/E) ratio is in line with the S&P 500. According to Yardeni Research, the average forward P/E for soft drink stocks is 22x. That means you can look at the company's dividend. And Coke is a dividend king that has increased its dividend for 62 consecutive years. It has a current yield of 3.13%.
About Coca-Cola
The Coca-Cola Company, a beverage company, manufactures, markets, and sells various nonalcoholic beverages worldwide. The company provides sparkling soft drinks, sparkling flavors; water, sports, coffee, and tea; juice, value-added dairy, and plant-based beverages; and other beverages. It also offers beverage concentrates and syrups, as well as fountain syrups to fountain retailers, such as restaurants and convenience stores.
Read More - Current Price
- $62.55
- Consensus Rating
- Moderate Buy
- Ratings Breakdown
- 14 Buy Ratings, 2 Hold Ratings, 0 Sell Ratings.
- Consensus Price Target
- $72.50 (15.9% Upside)
