S&P 500   4,981.80
DOW   38,612.24
QQQ   425.61
Palo Alto Networks, Keysight fall; Garmin, Toll Brothers rise, Wednesday, 2/21/2024
Is Gold Really Boring? (Ad)
Palo Alto Networks aims at cyber security leadership
Spotify sounding better to analysts as company tunes into profits
Gold Could Be Heading for Record Highs - But How to Play It? (Ad)
3 Reasons the Capital One-Discover merger is a big deal
How major US stock indexes fared Wednesday, 2/21/2024
Gold Could Be Heading for Record Highs - But How to Play It? (Ad)
Germany says Europe's largest economy is in 'troubled waters' and cuts its growth forecast
Range-bound Home Depot stock still is, lower prices ahead
S&P 500   4,981.80
DOW   38,612.24
QQQ   425.61
Palo Alto Networks, Keysight fall; Garmin, Toll Brothers rise, Wednesday, 2/21/2024
Is Gold Really Boring? (Ad)
Palo Alto Networks aims at cyber security leadership
Spotify sounding better to analysts as company tunes into profits
Gold Could Be Heading for Record Highs - But How to Play It? (Ad)
3 Reasons the Capital One-Discover merger is a big deal
How major US stock indexes fared Wednesday, 2/21/2024
Gold Could Be Heading for Record Highs - But How to Play It? (Ad)
Germany says Europe's largest economy is in 'troubled waters' and cuts its growth forecast
Range-bound Home Depot stock still is, lower prices ahead
S&P 500   4,981.80
DOW   38,612.24
QQQ   425.61
Palo Alto Networks, Keysight fall; Garmin, Toll Brothers rise, Wednesday, 2/21/2024
Is Gold Really Boring? (Ad)
Palo Alto Networks aims at cyber security leadership
Spotify sounding better to analysts as company tunes into profits
Gold Could Be Heading for Record Highs - But How to Play It? (Ad)
3 Reasons the Capital One-Discover merger is a big deal
How major US stock indexes fared Wednesday, 2/21/2024
Gold Could Be Heading for Record Highs - But How to Play It? (Ad)
Germany says Europe's largest economy is in 'troubled waters' and cuts its growth forecast
Range-bound Home Depot stock still is, lower prices ahead
S&P 500   4,981.80
DOW   38,612.24
QQQ   425.61
Palo Alto Networks, Keysight fall; Garmin, Toll Brothers rise, Wednesday, 2/21/2024
Is Gold Really Boring? (Ad)
Palo Alto Networks aims at cyber security leadership
Spotify sounding better to analysts as company tunes into profits
Gold Could Be Heading for Record Highs - But How to Play It? (Ad)
3 Reasons the Capital One-Discover merger is a big deal
How major US stock indexes fared Wednesday, 2/21/2024
Gold Could Be Heading for Record Highs - But How to Play It? (Ad)
Germany says Europe's largest economy is in 'troubled waters' and cuts its growth forecast
Range-bound Home Depot stock still is, lower prices ahead

Coca-Cola: Top-Rated dividend stock breaks out ahead of earnings

Coke stock Price

Key Points

  • Coca-Cola (NYSE: KO) has experienced a significant turnaround in its stock performance, surging nearly 8% over the past three months.
  • Technical analysis suggests Coca-Cola's stock is poised for a notable breakout, having surpassed short-term resistance and diverged from its key Simple Moving Averages (SMA).
  • Analysts are optimistic about Coca-Cola's future, with a consensus Moderate Buy rating and a robust consensus price target of $66.87.
  • 5 stocks we like better than Coca-Cola

Shares of Coca-Cola NYSE: KO, the Top-Rated Dividend stock, household brand name, and consumer staple giant, have staged a notable turnaround and comeback lately, with its stock rising close to 8% over the previous three months. 

After plunging to new 52-week lows in October last year, after breaking below previous significant support near $60, the stock traded under $52 briefly before reversing off the lows. Since then, the stock has done nothing but tick higher and reclaimed the all-important $60 area of support. 

From a technical analysis perspective, shares of KO look set for a significant breakout after the stock recently broke above short-term resistance and broke away from its converging 200-day and 50-day Simple Moving Averages (SMA).

With the overall market trading at all-time highs and the consumer staples sector firmly in the green year-to-date, might shares of KO be a buy ahead of further upward momentum throughout the year?

A favorite among value investors

Coke stock outlook

Renowned globally, The Coca-Cola Company is a leading beverage enterprise in over 200 nations. Evolving beyond its iconic sodas, the company now offers an extensive range of nonalcoholic beverages. From sparkling soft drinks to a spectrum including flavored water, sports beverages, and coffee, Coca-Cola's portfolio encompasses various brands such as Fanta, Fresca, Sprite, and more.

Its stock has long been a favorite among investors seeking stability. With moderate volatility, as seen in its 52-week range of $51.55 to $64.99 and a Beta of 0.60, it has also offered investors a sense of reliability. The stocks' impressive dividend yield may best reflect that reliability. KO is a dividend aristocrat with a sixty-two-year dividend increase track record and currently has an above-average dividend yield of 3.02%.


While its mature status implies limited room for rapid expansion, the company remains adept at capitalizing on growth avenues through strategic marketing, innovation in flavor profiles, and operational efficiencies.

Analysts are bullish on KO

Based on eleven analyst ratings, shares of Coca-Cola have a Moderate Buy rating. The stock has an impressive consensus price target of $66.87, forecasting an almost double-digit upside. The low forecast of $60 corresponds with the all-important support level on its chart and a high estimate of $74 calls for an impressive 23% upside. 

Coca-Cola’s consensus rating of Moderate Buy is head and shoulders above the rest. The consensus rating for consumer staples companies is currently Hold, while the S&P 500 consensus rating is also Hold. 

 Most recently, analysts from Barclays and Citigroup took action on the stock. On January 16, analysts from Barclays boosted its target on KO from $60 to $66, calling for over 10% upside at the time of the report date. The following day, analysts from Citigroup boosted its target from $67 to $68, forecasting over 13% at the time of the report date. 

KO report earnings this month

Coca-Cola is scheduled to announce its earnings later this month, on February 13, before the market opens, covering the fiscal quarter ending December 2023. Analysts anticipate an earnings per share (EPS) of $0.48 for the quarter, compared to $0.45 reported in the same quarter last year. Looking ahead, Coca-Cola's earnings are projected to increase from $2.68 per share to $2.81 per share over the next year, indicating a growth rate of 4.85%.

On the valuation front, Coca-Cola currently holds a trailing price-to-earnings ratio of 24.49 and a forward price-to-earnings ratio of 22.75. The price/earnings-to-growth ratio stands at 3.42.

→ Is Gold Really Boring? (From Edge On The Street) (Ad)

Should you invest $1,000 in Coca-Cola right now?

Before you consider Coca-Cola, you'll want to hear this.

MarketBeat keeps track of Wall Street's top-rated and best performing research analysts and the stocks they recommend to their clients on a daily basis. MarketBeat has identified the five stocks that top analysts are quietly whispering to their clients to buy now before the broader market catches on... and Coca-Cola wasn't on the list.

While Coca-Cola currently has a "Moderate Buy" rating among analysts, top-rated analysts believe these five stocks are better buys.

View The Five Stocks Here

7 Stocks to Own Before the 2024 Election Cover

Looking to avoid the hassle of mudslinging, volatility, and uncertainty? You'd need to be out of the market, which isn’t viable. So where should investors put their money? Find out with this report.

Get This Free Report

Companies Mentioned in This Article

CompanyMarketRank™Current PricePrice ChangeDividend YieldP/E RatioConsensus RatingConsensus Price Target
Coca-Cola (KO)
4.1132 of 5 stars
$61.25+0.9%3.00%24.70Moderate Buy$67.00
Compare These Stocks  Add These Stocks to My Watchlist 

Ryan Hasson

About Ryan Hasson

  • Ry.has7@gmail.com

Contributing Author

Technical Analysis, Momentum Trading, Risk Management

Experience

Ryan Hasson has been a contributing writer for MarketBeat since 2023.

Areas of Expertise

Equity research and analysis, technical analysis and price action, market sentiment and underlying themes, risk management and trading psychology

Education

Bachelor of Commerce in Financial Management

Past Experience

Equities trader, Kershner Trading Group, business analysis consultant, SMB Capital

Zoom International: Business Analysis Consultant.


Featured Articles and Offers

Search Headlines: