Coca-Cola | Stock to buy?

Coca-cola co. (KO) stock has been winning this week after revenues are looking up. With the pandemic coming to an end, can coca-cola keep up the gains?

Coca-cola suffered through the pandemic losing around half of usual sales. Before the pandemic, the company was building some serious momentum with a 16% sales increase at the end of 2019. Coke saw a 28% sales drop in the second quarter of 2020 which set poor performance as during the pandemic. Despite this, the company maintained strong balance sheets and continued to pay dividends unlike many which cut their payouts due to exceptional circumstances.

The first quarter of 2021 saw the company making a comeback with its first positive revenue after four quarters of losses. With lockdowns easing worldwide, can Coca-Cola pick up from where it left off pre-covid? The company has posted strong revenue growth over 2021 although their path to recovery is understandably unclear.

The pandemic shed light on some trouble areas in the company’s business model. With major changes to consumer behavior Coca-Cola tried to adapt by cutting costs, improving their marketing strategy and laying off workers. During this process they reduced their range of brands from 400 to 200 and launched more scalable brands. Competitor PepsiCo (PEP), whose beverage segment is not as large as Coca-Cola’s, weathered the pandemic better due to its more varied product range, including some food brands.

KO Dividends

Coca-Cola is valued for its dividend, which yields 3.1% at the current price. The company has raised its dividend for almost 60 years in a row. The company has an incredible track record of dividend and is committed to continuing this,no matter the challenge. 

KO Analyst Recommendations

The current consensus among 26 polled investment analysts is to buy stock in Coca-Cola Co. 

Graphic source: Money CNN

KO Price Forecast

The 22 analysts offering 12-month price forecasts for Coca-Cola Co have a median target of 60.00, with a high estimate of 67.00 and a low estimate of 53.00. The median estimate represents a +10.11% increase from the last price of 54.49.

Graphic source: Money CNN

Short-term it is unclear how quickly Coca-Cola gets back on its growth track, but long-term they are sure to expand and increase sales. Will you be investing? If so, we recommend eToro and easyMarkets for beginners. 

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