5 Reasons Coca-Cola Stock Will Hit New Highs This Year

Key Points

• The Coca-Cola Company's uptrend is intact, and new highs are likely to be reached by year's end.
• Capital returns are healthy and reliable, with dividends expected to increase in the coming years.
• Analysts and institutional trends align with a rising stock price in 2025.

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Coca-Cola NYSE: KO remains one of the most consistent performers in the consumer staples sector, and recent developments suggest its stock is positioned to reach new all-time highs in the months ahead.

From resilient earnings and dependable capital returns to sustained institutional support and bullish technical momentum, multiple factors are aligning in the company’s favor.

Here’s a breakdown of five key reasons Coca-Cola’s stock could continue climbing, and where the price may be headed as the year wraps up.

#1 - Results Prove Coca-Cola’s Leadership Position

Like most businesses, Coca-Cola experienced headwinds and hurdles in Q3. However, the company's most recent earnings report shows it outperformed on the top and bottom lines as price pass-throughs and product mix drove strength. Revenue of $12.5 billion is up 5% year-over-year (YOY), outpacing MarketBeat’s reported consensus by a narrow margin but still ahead. Organically, growth came in at a stronger 6%, with strength across global unit case volume, all categories, and market regions. 

Regionally, Asia-Pacific and Europe-Middle East-Africa were the strongest, up by 7% each, with Latin America and North America growing by 4%. The margin news was also solid. The company reported a comparable operating margin up 120 basis points, driving accelerated bottom-line growth. The adjusted EPS of 82 cents is up 6% compared to 5% revenue growth and outperforms by more than 500 basis points. 

#2 - Coca-Cola’s Guidance is Likely to Be Cautious

Coca-Cola reaffirmed its guidance for the year, which forecasts organic growth of 5% to 6% YOY and wider margins. The bad news is that the guidance is unchanged, despite the Q3 strengths, but two things offset it. The first is that free cash flow guidance was improved, which is critical to the capital return outlook.

The second is that the guidance is likely to be cautious, and outperformance should be expected for both fiscal Q4 and the year. Coca-Cola’s revenue growth is accelerating in this scenario and is likely to remain strong in the subsequent fiscal year. 

#3 - Coca-Cola’s Substantial Capital Return Increases Annually

Coca-Cola’s stock price outlook is underpinned by its capital return outlook.

The capital return includes dividends and share repurchases, but the dividends matter.

While buybacks reduce the count annually, they provide only modest leverage, reducing the count by 0.2% on average in the quarter.

On the other hand, the dividend is far more substantial, yielding close to 3% in late October, and distribution growth is a factor.

The company is a Dividend King with more than 60 years of consecutive dividend increases, growing its payout at a 4.3% CAGR, likely to be sustained in the coming years.

This consistency appeals to long-term investors and income-focused portfolios alike.

As interest rate expectations shift, Coca-Cola’s reliable yield and proven dividend policy provide a strong anchor for total return.

#4 - Analysts and Institutions Provide Lift for KO Stock Price Action

The analysts and institutions provide lift to KO stock price action, with coverage firm at 15 analysts, sentiment pegged at Buy, and price targets steady ahead of the Q3 release, forecasting a move to $76.70.

A move to $76.70 is sufficient for a new all-time high, and revision trends suggest higher prices are likely. The pre-release activity includes some price target reductions.

Still, they are at levels above the consensus, indicating that this market is moving higher; post-release activity is likely to be more bullish for this consumer staple stock. 

#5 - KO’s Stock Price Action Is Bullish 

KO’s stock price was bullish after the release, rising more than 3.5%. The market action confirmed a rebound that began the week prior and support at critical moving averages. These moving averages align with a long-term uptrend, indicating a trend-following buying signal. Indicators on the monthly chart, including the MACD and stochastic, indicate the market is amid a secular-grade price upswing and has ample room to move higher.

Assuming new highs are reached, the setup suggests this market could move higher for several months, up to two years, before topping out.