Should You Pick Coca-Cola Stock At $60 After Q4 Beat? (2024)

FAQs

Is Coca-Cola a good investment right now? ›

Fair Value Estimate for Coca-Cola

With its 3-star rating, we believe co*ke's stock is fairly valued compared with our long-term fair value estimate of $60 per share, which implies a 22 times multiple against our adjusted 2024 earnings estimate and a 2024 enterprise value/adjusted EBITDA multiple of 20 times.

The soda maker is still a great evergreen investment. Coca-Cola (KO -0.14%) is often considered a safe blue chip stock. It owns the world's top soda brand, it generates plenty of cash, and it pays consistent dividends.

Coca-Cola isn't just a top dividend stock because of its high yield; the dividend is reliable and growing. co*ke paid $8 billion in dividends in 2023, with a payout ratio of 74%. That's in management's ideal zone; Coca-Cola's chief draw for investors is its rock-solid passive income stream.

The average price target for Coca-Cola is $67.69. This is based on 14 Wall Streets Analysts 12-month price targets, issued in the past 3 months. The highest analyst price target is $72.00 ,the lowest forecast is $58.00. The average price target represents 8.17% Increase from the current price of $62.575.

Coca-Cola expects fiscal 2024 organic sales to grow 8% to 9%, compared with its prior forecast of a 6% to 7% rise. First-quarter net revenue rose 2.5% to $11.23 billion, beating LSEG estimates of $11.01 billion. Coca-Cola posted adjusted profit of 72 cents per share, compared with expectations of 70 cents.

In 2023, Buffett wrote that Berkshire's $1.3 billion investment in co*ke, made from the late 1980s through the mid-1990s, has been justified by the dividend payments alone. co*ke paid an annual dividend of $704 million in 2022.

"Share a co*ke" Returns with More Names, More Flavors and More Ways to Enjoy Ice-Cold Summer Refreshment | Press Release.

Con: It's Expensive

KO's price-earnings ratio is a staggering 42.4. That's nearly double PepsiCo's 23.5 P/E ratio. The firm's earnings-per-share growth this year is only expected to be around 5% — so at the moment KO stock looks overvalued.

Last but not least (and perhaps most important), The Coca-Cola Company is a dividend juggernaut. Not only has it paid one every quarter for decades now; it has raised its annualized payout every year for the past 62 years. And it's not like it can't afford to continue doing so.

You would have more than doubled your money, with a total investment worth of $2,029.55. That's a 103% return, or a 7.23% annual rate of return. Interestingly, despite co*ke's dominance on the world stage, investing in co*ke's main rival, Pepsi, 10 years ago would have given you more pop for your buck.

Is Coca-Cola a good stock to buy in 2024? ›

CocaCola Company (The) Price and EPS Surprise

Coca-Cola is expected to register bottom-line growth when it reports first-quarter 2024 results. The consensus estimate for first-quarter earnings is pegged at 69 cents per share, suggesting a rise of 1.5% from the prior-year quarter's reported figure.

Dividend growth: PepsiCo wins

Looking back since the peak of the Covid-19 crisis (see chart below), PepsiCo has increased its per-share dividend payments at a substantially faster pace than Coca-Cola: 10% today on a trailing 12-month basis versus co*ke's 5%.

Walt Disney has 28.25% upside potential, based on the analysts' average price target. Is DIS a Buy, Sell or Hold? Walt Disney has a consensus rating of Strong Buy which is based on 20 buy ratings, 5 hold ratings and 0 sell ratings.

Largest shareholders include Berkshire Hathaway Inc, Vanguard Group Inc, BlackRock Inc., State Street Corp, VTSMX - Vanguard Total Stock Market Index Fund Investor Shares, VFINX - Vanguard 500 Index Fund Investor Shares, Geode Capital Management, Llc, Morgan Stanley, Fmr Llc, and Charles Schwab Investment Management ...

Historical daily share price chart and data for Coca-Cola Consolidated since 1990 adjusted for splits and dividends. The latest closing stock price for Coca-Cola Consolidated as of May 29, 2024 is 984.84. The all-time high Coca-Cola Consolidated stock closing price was 1009.31 on May 07, 2024.

The Coca-Cola Company Stock Forecast

The 12 analysts with 12-month price forecasts for KO stock have an average target of 68.33, with a low estimate of 60 and a high estimate of 74. The average target predicts an increase of 10.74% from the current stock price of 61.71.

As of 2024-05-24, the Fair Value of Coca-Cola Co (KO) is 30.82 USD. This value is based on the Peter Lynch's Fair Value formula. With the current market price of 62.09 USD, the upside of Coca-Cola Co is -50.4%.

Coca-Cola stock price stood at $61.71

According to the latest long-term forecast, Coca-Cola price will hit $65 by the middle of 2025 and then $70 by the middle of 2026. Coca-Cola will rise to $75 within the year of 2027, $85 in 2028, $100 in 2029, $110 in 2030 and $125 in 2033.