#1 - Coca-Cola (NYSE:KO)
The first stock on the list is a traditional bellwether stock. Coca-Cola (NYSE:KO) has managed to navigate the pandemic fairly well. Full-year 2020 revenue of $33.05 billion was only down about 9% year-over-year (YOY). And earnings per share of $2.11 for the full year were virtually identical to the $2.15 the company posted in 2019.
Bullish investors might note that KO stock is up 25% in the last 12 months. But the stock is essentially flat in 2021 and 12% below its pre-pandemic high. It seems likely that Coca-Cola can make up that gap as live entertainment and sporting events begin to reopen.
The company is also in the process of getting leaner in terms of its brand portfolio. Management expects to cut the number of brands from 400 to 200. This will allow the company to put more emphasis on its core brands which should result in better earnings and free cash flow (FCF).
In addition to anticipation of higher revenues and earnings, Coca-Cola is part of the exclusive Dividend King club having delivered 59 consecutive years of dividend growth. Over the last three years, the quarterly dividend has grown over 10% and now pays $1.68 per share for the full year.
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
- $61.75
- Consensus Rating
- Moderate Buy
- Ratings Breakdown
- 6 Buy Ratings, 1 Hold Ratings, 0 Sell Ratings.
- Consensus Price Target
- $67.22 (8.9% Upside)
